In the UAE, workers get a payment as a benefit at the end of their service, known as gratuity. This gratuity is a way for companies to show appreciation for their employees for their services. This is important for those who are planning on leaving or retiring. This tool gratuity calculator can help workers figure out how much they will receive in gratuity at the end of their service.

The gratuity calculator is a helpful tool to find your estimated amount of gratuity based on your provided information and UAE labor law. But this tool is not legally binding. Due to some factors, this tool is not fully accurate, like terms of employment agreement, received benefits during the service period, or most importantly, if you will enter incomplete information in the calculator.

This calculator only focuses on gratuity and doesn’t include other benefits like unused leave, notice period compensation, or airfare. While a calculator aims to show accurate results, advice for users is to contact a professional legal consultant to get useful advice or if you have any issues with your gratuity or end-of-service benefits.

Here’s a simple step-by-step guide to calculate your gratuity.

This end of service calculator uae is a handy tool to find your estimated end-of-service benefits to avoid users from complicated calculations. If you completed the one-year service and have a valid reason for leaving. You can calculate your gratuity amount here. As the tool provides an estimated amount, which is not a legally binding figure.

For Domestic Workers use Domestic Worker Gratuity Calculator UAE

You must meet the requirements for superannuation.

Your contract Limited and Unlimited Contract also impacts on your gratuity calculations.

Limited Contract Type

Unlimited Contract Type

For employees under an unlimited contract, your gratuity calculation depends on both your length of service and the circumstances of end-of-service.

In Case of Termination:

Article 120 Termination

In Case of Resignation

Article 120 Resignation

Also, remember

The rules of gratuity in the UAE depend on end-of-service circumstances and contract. If you complete the longer tenure, you will get more gratuity. But due to specific conditions like early resignation and termination by any misconduct that can effect eligibility of gratuity, that is why you need to understand all rules to calculate the accurate gratuity.

Our gratuity calculator in Dubai will provide you with an estimated gratuity. But if you want to know how gratuity is calculated manually, here are the guidelines for calculating gratuity through formulas.

If you are on a limited contract, you can calculate your estimated gratuity after completing your service period using this formula.

• Basic salary÷ 30 = Daily Salary
• If your basic salary is AED 15,000
• 9,000 ÷ 30 = AED 300 (Daily Salary)

• Daily Salary × 21 = Gratuity per year
• 300 × 21 = AED 6,300 (Per Year Gratuity)

• Gratuity per year × Number of service years.
• 6,300 × 5 years = AED 31,500 (Total Gratuity)

• If your basic salary is AED 9,000 and you’ve worked for 7 years, the calculation for the extra 2 years would be:
• 9000 × 2 = AED 18,000
• This is gratuity for the 6th and 7th year.

• Gratuity of first 5 years + Gratuity of 5th year onwards = Total Gratuity
• 31,500 + 18,000 = AED 49,500

If you are on a Unlimited contract, You can calculate your estimated gratuity after completing your service period using this formula.

• For a basic salary of AED 9,000,
• 9,000 ÷ 30 = AED 300 (Daily Salary)

• Daily Salary × 21 = Gratuity per year300 × 21 = AED 6,300
• 300 × 21 = AED 6,300 (Per Year Gratuity)

• If service is between 1 and 3 years, calculate one-third of 21 days salary.
• (21 Days’ Salary × 1/3) = Gratuity per year
• 6,300 × 1/3 = AED 2,100 (Per Year Gratuity)

• Gratuity per year × Number of service years
• 2,100 × 2 years = AED 4,200 (Total Gratuity)

• If service is between 3 and 5 years, Calculate two-thirds of 21 days salary.
• (21 Days’ Salary × 2/3) = Gratuity per year
• 6,300 × 2/3 = AED 4,200 (Per Year Gratuity)

• Gratuity per year × Number of service years
• 4,200 × 4 years = AED 16,800 (Total Gratuity)

Mistake: I will get my gratuity on my total salary.

Clarification: Your gratuity is according to your basic salary, excludes all allowances from your salary, like housing allowance, fuel, medical compensation, etc.

Mistake: I will get my gratuity on the approximated duration of service.

Clarification: Your gratuity should be calculated based on the exact duration of your service tenure. There is no round-off thing when it comes to gratuity calculation.

Mistake: I will get the same gratuity per year of service regardless of my contract type.

Clarification: According to UAE Labor Laws, formulas of gratuity calculations are different for limited and unlimited contract-type jobs.

Mistake: Gratuity is the other name for end-of-service benefits.

Clarification: Your gratuity is just one component of your end-of-service benefit. There might be other benefits as well based on your job agreement.

Mistake: Gratuity is the same for everyone regardless of when they leave the job.

Clarification: The gratuity amount varies with the tenure of your service. You are not eligible for gratuity if your service period is less than one year.

Mistake: My gratuity calculation will be the same whether I resign or am terminated.

Clarification: The calculation of gratuity can differ based on whether you resign or are terminated. For resignation, the gratuity may be calculated at a reduced rate depending on your years of service.

Mistake: I will receive the same rate of gratuity for all my years of service, regardless of exceeding 5 years.

Clarification: For service exceeding 5 years, the gratuity calculation changes. The first 5 years are calculated at a rate of 21 days’ salary per year, and any additional years beyond 5 are calculated at 30 days’ salary per year.

Mistake: The gratuity calculation remains the same even if my contract type changes during my employment.

Clarification: If your contract type changes (e.g., from unlimited to fixed-term), the gratuity calculation may need to be adjusted according to the terms of the new contract.

Mistake: My gratuity calculation will be based on my salary at the start of my employment.

Clarification: Gratuity is calculated based on your last basic salary. Any changes in salary during your tenure should be accounted for in the calculation.

Mistake: There is no limit to the gratuity amount I can receive.

Clarification: The total gratuity amount should not exceed the equivalent of two years’ basic salary, regardless of the total duration of service.

To ensure you receive the gratuity you’re entitled to in the UAE, it’s crucial to follow these key steps:

Your contract details the terms of your employment, including how your gratuity will be calculated based on your salary and whether you have a limited or unlimited contract. Make sure you review all the details of your basic salary because gratuity is only calculated on the basic salary, excluding any allowances such as housing or transport.

The UAE Labor Law governs gratuity entitlements. You should understand your rights according to laws; for example, if you completed a one-year service period, then you are eligible for gratuity, and calculations depend on service duration and contract type.

It’s important to maintain an employment record of your start and end dates and keep close eye on salary changes. Gratuity is calculated based on your exact duration of your employment. Keeping accurate records ensures you receive the correct gratuity amount.

If you have any questions related to your employment term or gratuity, then discuss with your HR department or employer. It's better to clarify any uncertainties early to avoid any misunderstandings, especially concerning gratuity eligibility and calculations.

In case of any dispute or if you are unsure about the legal aspects of gratuity, then consult with a legal professional. A lawyer familiar with UAE labor laws can help protect your rights and ensure you