UAE End of Service Gratuity Calculator
Estimate only, not legal advice. Based on UAE mainland labour law; free zones such as DIFC and ADGM may differ. Please confirm with MOHRE or your employer.
How to Use the UAE Gratuity Calculator
Enter your last basic monthly salary, your total years and months of service, and any unpaid leave days. Click Calculate and you will see your estimated end of service gratuity in AED, with a full breakdown.
What Is End of Service Gratuity in the UAE?
End of service gratuity is a payment an employer must make to an employee when the job ends. It is a reward for your years of service. You become eligible after completing at least one full year of continuous service with the same employer.
How Gratuity Is Calculated
Gratuity is calculated on your last basic salary only. Allowances such as housing, transport or bonuses are not included. The daily wage is your monthly basic salary divided by 30.
- First 5 years of service: 21 days of basic wage for every year
- After 5 years: 30 days of basic wage for every additional year
- Maximum limit: the total cannot be more than 2 years of wages
- Part years: counted proportionally
- Unpaid leave: these days are not counted as service
Example 1: 3 Years of Service
Basic salary: AED 5,000. Daily wage: 5,000 ÷ 30 = AED 166.67.
Gratuity = 166.67 × 21 days × 3 years = AED 10,500.
Example 2: 7 Years of Service
Basic salary: AED 8,000. Daily wage: AED 266.67.
First 5 years: 266.67 × 21 × 5 = AED 28,000.
Next 2 years: 266.67 × 30 × 2 = AED 16,000.
Total gratuity = AED 44,000.
Common Mistakes to Avoid
Many people calculate gratuity on their total salary instead of basic salary, which gives a wrong, higher number. Another mistake is forgetting to remove unpaid leave days, or forgetting that gratuity is not payable before one year of service.
Frequently Asked Questions
Is gratuity based on basic salary or total salary?
It is based on basic salary only. Allowances are not included.
Do I get gratuity if I work less than one year?
No. You must complete at least one full year of service.
Is there a maximum gratuity amount?
Yes. The total cannot exceed two years of wages.
Does this calculator work for free zones like DIFC or ADGM?
Not always. Free zones can have their own end of service rules, so check with your employer.
When must gratuity be paid?
Usually within 14 days after the end of employment, along with your final settlement.
Disclaimer: This calculator gives an estimate based on UAE mainland labour law. It is not legal advice. For an official figure, contact your employer or MOHRE.