Calculate your UAE Gratuity Instantly
Easily estimate your end-of-service benefits with our free online gratuity calculator. It’s fast, accurate, and designed to simplify the process for you.
To get started, all you need to do is provide a few basic details:
- Enter your basic salary, which is the last drawn monthly amount.
- Specify your service period, including the total years and months you worked.
- Choose your contract type—whether it’s limited or unlimited.
- Indicate the reason for leaving your job, such as resignation or termination.
With just a few clicks, you’ll receive an instant gratuity estimate based on UAE labor laws. Try it now—it’s completely
Calculation Rules:
- Less than 1 year: No gratuity
- 1-5 years: 21 days basic salary for each year
- More than 5 years: 30 days basic salary for each year after first 5 years
What is Gratuity in the UAE?
Gratuity (مكافأة) is a financial benefit given to employees in the UAE when their employment ends. It’s often referred to as an end-of-service benefit and is a legal right for eligible employees under UAE Labor Law.
To qualify for gratuity, employees must complete at least one year of continuous service with their employer. The gratuity amount depends on several key factors:
- Length of Service: The total time you worked for the company, measured in years and months.
- Reason for Leaving: Whether you resigned, were terminated, or your contract expired.
- Type of Contract: Whether you were employed under a limited or unlimited contract, as each has different rules.
Gratuity is calculated based on your basic salary, excluding allowances or other benefits, and follows specific formulas outlined in UAE Labor Law. It ensures employees are fairly compensated for their dedication and service.
Avoid These Common Mistakes When Using calculateuaegratuity.com
End-of-service calculators are great tools, but they don’t cover every detail. Here are some common mistakes to avoid:
1. Salary Misunderstanding
- Mistake: Assuming gratuity is based on your total salary.
- What You Need to Know: Gratuity is calculated based only on your basic salary, excluding allowances like housing, transportation, and medical benefits.
2. Incorrect Service Time Calculation
- Mistake: Estimating your service time instead of using the exact duration.
- What You Need to Know: Gratuity is calculated based on your exact service time. There’s no rounding up or down.
3. Confusion About Contract Types
- Mistake: Assuming gratuity calculations are the same for all contract types.
- What You Need to Know: Limited contracts and unlimited contracts have different gratuity formulas under UAE labor law. Check the rules for each type to calculate accurately.
4. Overlooking Other End-of-Service Benefits
- Mistake: Thinking gratuity is the only end-of-service benefit.
- What You Need to Know: Gratuity is just one part of your end-of-service benefits. Your employment contract might include other benefits like unused vacation days or severance pay.
5. Oversimplifying Gratuity Calculation
- Mistake: Believing everyone gets the same gratuity amount, no matter when they leave.
- What You Need to Know: The gratuity amount depends on how long you’ve worked. If you haven’t completed at least one year of service, you won’t be eligible for gratuity.
Key Steps to Calculate Your End-of-Service Benefits
Under UAE Labour Law (Article 51), expatriates working in the private sector are entitled to gratuity benefits. You'll need a few details about your employment to use our online calculator and get an accurate result. Here's how to get started:
1. Confirm You Meet the Minimum Service Requirement
Gratuity is only paid if you’ve worked for at least one full year. If your service is less than a year, you won’t qualify for this benefit under UAE laws, regardless of whether you work in the private or public sector.
2. Know Your Basic Salary
Gratuity is calculated based on your basic salary, not including allowances or extra benefits. Make sure you enter your exact basic monthly salary for the most accurate calculation.
3. Identify Your Contract Type
The type of employment contract you had with your employer matters. Choose between two options:
- Limited Contract: Fixed duration.
- Unlimited Contract: Open-ended.
4. State the Reason for Leaving Your Job
Why you left your job affects the gratuity amount you’re entitled to. For example, did you resign, or was your contract terminated? Be sure to provide the correct reason.
5. Enter Your Work Dates
Your start and end dates are essential for calculating your total years and months of service. This ensures your gratuity is calculated accurately.
Gratuity Calculation Formula Explained
For Limited Contracts
- If you worked between 1 to 5 years:
Gratuity = (Basic Salary × 21 Days × Years Worked) ÷ 30 - If you worked more than 5 years:
Gratuity = (Basic Salary × 30 Days × Years Worked) ÷ 30
Important: Limited contracts have fixed terms. If you leave before completing the agreed duration, you may lose your gratuity entitlement. ensures your gratuity is calculated accurately.
For Unlimited Contracts
If you resigned:
- Less than 1 year: No gratuity is paid.
- 1 to 3 years: You are entitled to 1/3 of 21 days’ basic salary for each year of service.
- 3 to 5 years: You receive 2/3 of 21 days’ basic salary for each year of service.
- More than 5 years: You get 21 days’ basic salary for the first 5 years, plus 30 days’ basic salary for each additional year.
If you were terminated:
- Less than 1 year: No gratuity is paid.
- 1 to 5 years: You are entitled to 21 days’ basic salary for each year of service.
- More than 5 years: You receive 21 days’ basic salary for the first 5 years, plus 30 days’ basic salary for each additional year.
Tips to Maximize Your Gratuity
Understand Your Contract
Review your employment contract carefully, especially the sections about gratuity. Make sure you understand your company’s specific gratuity policy.
Complete Limited Contracts
If you have a limited-term contract, aim to complete the full duration. Leaving early may reduce or eliminate your gratuity payment.
Testimonial
I was nervous about leaving my job and not knowing how much gratuity I’d receive. After using this tool, I felt a lot more confident. It’s straightforward to use, and I loved that it gave me a clear breakdown of the amount based on my specific situation. Plus, the tips on the site helped me understand how to maximize my benefits. Highly recommend this tool for anyone in Dubai looking to calculate their gratuity easily
– Sarah M., Dubai
Testimonial
I’ve been working in Dubai for over three years, and I was always unsure about how gratuity works. This calculator made the process so easy to understand. I simply entered my salary, contract type, and service length, and within seconds, I got an accurate estimate. The tool helped me plan my finances as I’m thinking about resigning soon. I definitely recommend it to anyone who wants a quick, reliable way to estimate their gratuity payout
– Ahmed R., Dubai
Who is eligible for gratuity in the UAE?
Only expatriate employees (foreign nationals) are eligible for gratuity in the UAE. UAE nationals are not eligible, as they receive benefits under the National Pension Plan.
When are employees eligible for gratuity?
Employees are eligible for gratuity when their employment ends, either by resignation or termination, provided they have worked for at least one year.
How is gratuity calculated?
Gratuity is based on your basic salary (excluding allowances like housing, transportation, and utilities). Here's how it works:
First 5 years: You will receive 21 days of basic salary for each year worked.
After 5 years: You will receive 30 days of basic salary for each additional year worked.
The total gratuity cannot exceed two years' basic salary.
When can an employer deny gratuity?
An employer can withhold gratuity in the following situations:
Employee Misconduct: If the employee engages in unlawful actions like theft, violence, or property damage.
Lack of Employment Contract: If the employee cannot provide a valid employment contract.
Insufficient Service: If the employee has worked for less than one year.
Can Gratuity Be Denied?
According to Article 139 of the UAE Labor Law, there are certain situations where an employee may not be eligible for gratuity. These include:
Resigning Without Proper Notice: If an employee resigns without giving the required notice, they may lose their right to gratuity. This applies to both limited and unlimited contracts, especially if the employee has not completed five years of service.
Termination for Specific Reasons: If the employee is terminated for valid reasons (such as misconduct or violation of company policies), or resigns to avoid being dismissed, they may also lose their right to gratuity.