UAE Gratuity Calculator: Estimate Your End of Service Pay

Written and edited by the Visa Advice Hub Editorial Team.

How to Use This Calculator

This calculator uses the UAE Labour Law (Federal Decree-Law No. 33 of 2021) to estimate your end-of-service gratuity.

1. Enter your basic salary. Use only your basic monthly salary — not total package. Housing allowance, transport allowance, and commission are not included in gratuity calculations under standard practice.
2. Select your start and end dates. Use the date your employment contract started and your last official working day (or visa cancellation date if that is earlier).
3. Select your reason for leaving. Under current law, this has limited impact on the calculation, but very old contracts may differ.
4. Review the estimate. The result is an approximation. Your employer may have different terms, or there may be deductions for outstanding loans or violations.

What This Calculator Can Estimate

• Estimated gratuity based on UAE Labour Law standard formula: 21 days’ basic salary per year for the first 5 years, 30 days’ basic salary per year beyond 5 years
• Approximate years and days of service
• Daily salary rate used in the calculation
• Whether the 2-year salary cap applies to your situation

The formula applied:

What This Calculator Cannot Decide

• Unpaid salary owed to you — gratuity and unpaid wages are separate claims. If your employer owes you back salary, that is filed separately with MOHRE.
• Annual leave payout — unused annual leave is also a separate entitlement, calculated differently.
• Deductions — your employer may legally deduct outstanding loans, company property, or certain penalties from the final payment.
• Free zone employees — some free zones (DIFC, ADGM) have their own employment laws and gratuity rules.
• Domestic workers — domestic workers are covered under Federal Law No. 10 of 2017, which has a different gratuity structure.
• Disputes — if your employer refuses to pay or offers a lower amount, you can file a complaint with MOHRE at mohre.gov.ae.

Worked Example

Scenario: Ahmed worked as a logistics supervisor in Dubai for 7 years and 3 months. His basic salary at the time of resignation was AED 6,000 per month. He wants to estimate his end-of-service gratuity before negotiating his final settlement.

Step-by-step calculation:

• Daily wage rate: AED 6,000 ÷ 30 = AED 200 per day
• Years 1–5 (5 years): 21 days × 5 = 105 days. 105 × AED 200 = AED 21,000
• Years 6–7.25 (2.25 years): 30 days × 2.25 = 67.5 days. 67.5 × AED 200 = AED 13,500
• Total estimated gratuity: AED 34,500

Ahmed’s employer offers AED 30,000. He uses this figure as a reference point in the conversation and asks HR to provide a written calculation breakdown before signing anything.

This is an illustrative example only. Actual entitlements depend on your specific contract terms, whether the new or old Labour Law applies, and any outstanding deductions your employer may claim. Always request a written itemised settlement statement.

Frequently Asked Questions

Does my gratuity change if I received a promotion or salary increase?

Yes. UAE gratuity is calculated using your final basic salary — not an average over your service period. If your salary increased before leaving, your gratuity is calculated at the higher rate across all qualifying years. A raise close to your end date benefits your total entitlement.

Does gratuity include housing, transport or other allowances?

No. Under UAE Labour Law, gratuity is based on basic salary only. Housing, transport, food, commission, and other allowances are excluded unless your contract specifically states otherwise. If your contract shows a single total figure, ask your HR department to confirm the basic salary component before using the calculator.

I resigned voluntarily — do I still receive full gratuity?

Under Federal Decree-Law No. 33 of 2021 (effective February 2022), resignation does not reduce gratuity for contracts issued or renewed after that date. Under the older unlimited-contract rules, resignation before 5 years reduced the entitlement. If your contract predates February 2022, confirm with MOHRE which rules apply to your specific situation.

What is the minimum service period needed to qualify for gratuity?

You generally need at least 1 complete year of continuous service. If employment ends before 12 months — such as during probation — you are typically not entitled to gratuity under standard rules. Some contracts may include more generous terms, so review your employment contract or consult MOHRE if you are unsure.

My employer is refusing to pay my gratuity. What can I do?

File a formal complaint with MOHRE at mohre.gov.ae or via the MOHRE app. MOHRE will schedule a mediation session. If mediation fails, the case is referred to the Labour Court. Employers who refuse to pay legally owed gratuity face fines and court-enforced payment. Do not sign any exit documents before receiving your full settlement breakdown in writing.

Can my employer deduct company loans or salary advances from my gratuity?

Employers may deduct documented loans or salary advances, provided these are agreed in writing. Deductions must reflect actual amounts owed — arbitrary or undocumented deductions are not permitted. If you believe deductions are excessive or unauthorised, request a written settlement breakdown and, if needed, raise a complaint with MOHRE before signing anything.

Is there a legal cap on how much gratuity I can receive?

Yes. UAE law caps total end-of-service gratuity at 2 years of basic salary, regardless of the actual length of service. Additional years beyond a certain threshold do not increase the total payout above this ceiling. The calculator above applies this cap automatically, so the displayed figure already reflects the legal maximum.

Official Sources Used

Related Guides

• UAE End of Service Gratuity: Complete Guide for Expats
• UAE Visa Cancellation: How to Claim Unpaid Salary
• Final Salary Not Paid After Resignation in UAE

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