UAE End of Service Gratuity Calculator
Estimate based on UAE federal labour law for private sector employees. Free zones and special contracts may differ. Confirm with MOHRE or your employer.
UAE End of Service Gratuity Calculator (2026)
This free UAE gratuity calculator estimates your end of service benefit under the UAE labour law. Enter your last basic salary and length of service, and see your gratuity in AED, with a breakdown of the first five years and the years after. It is useful for expats from Pakistan, India and other countries who work in Dubai, Abu Dhabi, Sharjah and across the UAE.
How Gratuity Is Calculated
- Daily wage = Basic monthly salary / 30
- First 5 years: 21 days of basic wage for each year of service
- After 5 years: 30 days of basic wage for each additional year
- Cap: total gratuity cannot exceed 2 years of basic wage
- Eligibility: at least 1 year of continuous service
Example Calculations (Basic Salary AED 5,000)
| Service | Gratuity (approx.) |
|---|---|
| 1 year | AED 3,500 |
| 3 years | AED 10,500 |
| 5 years | AED 17,500 |
| 8 years | AED 32,500 |
With a 5,000 AED basic, the daily wage is about 166.67 AED. Five years gives 5 x 21 x 166.67 = 17,500 AED. Each year after that adds 30 x 166.67 = 5,000 AED.
Things To Remember
- Only basic salary counts, not housing, transport or other allowances.
- Unpaid leave days are normally excluded from the service period.
- Any outstanding loans or notice-period deductions may reduce what you finally receive.
- Keep your contract and last payslip when you claim your gratuity.
Frequently Asked Questions (FAQs)
Q: How is UAE end-of-service gratuity calculated?
A: For employees who complete at least one year, gratuity is 21 days of basic wage for each of the first five years and 30 days of basic wage for each year after that, with the total capped at two years of wages. This calculator uses that formula.
Q: Is gratuity calculated on basic salary or total salary?
A: Gratuity is based on your last basic salary, not allowances such as housing or transport. Use the basic salary shown in your contract.
Q: How much is the daily wage used?
A: The daily wage is calculated as basic monthly salary divided by 30.
Q: Do I get gratuity if I resign?
A: Under the current UAE labour law, eligible employees who complete the required service generally receive gratuity whether they resign or are terminated, but disputes and special cases exist. Confirm with your employer or the Ministry of Human Resources and Emiratisation (MOHRE).
Q: Is there a maximum gratuity amount?
A: Yes. The total gratuity cannot exceed two years of the employee's basic wage, and the calculator applies this cap.
Q: Does this work for free zones like DIFC or ADGM?
A: Not necessarily. Some free zones have their own rules. This tool follows the UAE federal labour law for private sector employees and is an estimate only.