📘 How Gratuity is Calculated (UAE Labor Law 2024)
- ➡️ Minimum 1 year of service required for gratuity.
- ➡️ ≤ 5 years: 21 days’ salary per year.
- ➡️ > 5 years: 30 days’ salary per year after 5th year.
- ➡️ Unlimited Contract + Resignation:
- 🔹 1–3 years: 1/3 gratuity
- 🔹 3–5 years: 2/3 gratuity
- 🔹 5+ years: Full gratuity
- ➡️ Limited Contract: Full gratuity if contract completed.
Gratuity Calculator UAE – End of Service Pay Calculator (2026)
Leaving a job in the UAE or planning your career transition can raise many questions, especially around your end-of-service benefits. One of the most common concerns employees have is how much gratuity they are entitled to receive. The Gratuity Calculator UAE is designed to help employees estimate their end-of-service gratuity based on UAE labour law principles in a clear and easy-to-understand manner.
This calculator is suitable for employees working across all Emirates, including Dubai and Abu Dhabi, and helps provide a general understanding of how gratuity is calculated in the UAE.
What is a Gratuity Calculator?
A gratuity calculator is an online tool that estimates the amount an employee may receive as end-of-service benefits after completing their employment in the UAE. Under UAE labour law, gratuity is a statutory benefit for most employees who have completed at least one year of continuous service with the same employer.
The end of service calculator UAE simplifies what is otherwise a complex calculation involving service duration, basic salary, contract type, and the reason for employment termination. Instead of manually applying labour law formulas, employees can use this calculator to get a quick and understandable estimate.
This tool is useful not only for employees but also for HR professionals and employers who want a transparent and standardised way to estimate gratuity amounts.
Understanding End of Service Gratuity in the UAE
End-of-service gratuity is a financial benefit paid by an employer to an employee when the employment relationship ends. It applies to most private-sector employees under UAE labour law, provided they meet the eligibility criteria.
Some key points to understand:
Gratuity is calculated only on basic salary, not allowances
A minimum of one year of service is required
The calculation differs depending on contract type and termination reason
UAE gratuity rules apply uniformly across all Emirates
Because these factors vary, using a gratuity calculator UAE can help employees understand how these elements interact.
How is Gratuity Calculated in the UAE?
Gratuity calculation in the UAE is completely based on the basic monthly salary and the total length of service of the employee.
The standard calculation structure is:
21 days of basic salary in the first five years of service.
One month’s salary as a basic salary every year after five years.
However, this structure may change depending on whether the employee resigned or was terminated by the employer, and whether the contract is limited or unlimited.
The end of service calculator UAE applies these general rules to provide an estimated gratuity amount based on the information you enter.
Important Clarification
This calculator provides an estimate based on commonly applied UAE labour law rules. Actual gratuity payouts may differ depending on contract terms, legal amendments, or court decisions.
Limited vs Unlimited Contracts
Gratuity calculations can differ based on whether an employee is on a limited or unlimited contract.
Limited contracts generally follow standard gratuity rules when completed
Unlimited contracts may have different outcomes depending on whether the employee resigns or is terminated
Because these distinctions can affect the final amount, the calculator asks for the contract type to apply the most relevant calculation logic.
Is This Gratuity Calculator Applicable in Dubai and Abu Dhabi?
Yes. This calculator applies to employees working in:
Dubai
Abu Dhabi
Sharjah
Ajman
Ras Al Khaimah
Fujairah
Umm Al Quwain
UAE labour law governing gratuity is federal, meaning the same core rules apply across all Emirates. Whether you are using this as an end of service calculator Dubai or an end of service calculator Abu Dhabi, the calculation principles remain consistent.
This makes the tool suitable for employees across the entire UAE.
How to Use the Gratuity Calculator UAE
Using the calculator is simple and requires only basic employment details:
Enter your joining date
Enter your last working date
Enter your last drawn basic monthly salary
Select your contract type
Click Calculate
The calculator will display an estimated gratuity amount based on the information provided.
What This Calculator Helps You Understand
This gratuity calculator helps users understand:
An estimated gratuity amount based on service duration
How gratuity changes after five years of employment
The role of basic salary in gratuity calculations
General applicability across Dubai, Abu Dhabi, and other Emirates
How contract type can influence end-of-service benefits
It is intended as a planning and awareness tool, not as a final settlement statement.
What This Calculator Does Not Include?
To ensure transparency, it is important to understand the limitations of this calculator.
This calculator does not include:
Deductions due to loans, penalties, or company policies
Special rules under free zone or government employment contracts
Court-ordered adjustments or labour dispute outcomes
Employer-specific agreements that override standard rules
Because of these factors, the final gratuity amount paid by an employer may differ from the estimate shown.
Important Notes About UAE Gratuity
Gratuity is calculated only on the basic salary
Total gratuity usually cannot exceed two years’ salary
Employees must complete at least one year of service
Allowances such as housing or transport are excluded
Resignation and termination may produce different results
Understanding these conditions helps avoid misunderstandings at the end of employment.
Why Use an Online Gratuity Calculator UAE?
Manually calculating end-of-service benefits can be confusing, especially when dealing with different contract types and service periods. An online gratuity calculator UAE simplifies this process by applying commonly used labour law formulas automatically.
This tool is helpful for employees who want a quick estimate before contract completion, resignation, or job change. It is also useful for general financial planning and understanding employment benefits in the UAE.
UAE Government Reference
For official information regarding UAE labour law and gratuity rules, you can refer to the UAE Government portal, which provides authoritative guidance on employment regulations.
Additional Tools You May Like
Learn more about gratuity rules on the official UAE Government Portal.
Frequently Asked Questions – UAE Gratuity Calculator
Is gratuity mandatory in the UAE?
Yes. Most employees who complete at least one year of continuous service are entitled to gratuity under UAE labor law, subject to eligibility conditions.
Is gratuity the same for limited and unlimited contracts?
No. The calculation method may vary depending on contract type and whether the employment ended due to resignation or termination.
Is gratuity calculated on total salary?
No. Gratuity is calculated only on the employee’s basic salary, excluding allowances and benefits.
How do I calculate gratuity in Dubai or Abu Dhabi?
You can use this gratuity calculator UAE, which applies UAE-wide rules suitable for Dubai, Abu Dhabi, and all other Emirates.
Is this calculator updated for 2026?
Yes. The calculator follows publicly available UAE labor law principles as applicable in 2026 to provide an estimated gratuity amount.
UAE Government Reference
To know your end-of-service benefits is a very important part of each employee who has employment planning in the UAE. This end of service calculator UAE helps you estimate your gratuity amount quickly and clearly, giving you better insight into your employment entitlements.
Disclaimer: This calculator provides an estimated gratuity amount based on standard UAE labour law principles and is intended for informational purposes only.