Gratuity Calculator UAE 2026 — Free MOHRE-Compliant End of Service Tool
Instantly calculate your end-of-service benefit under Federal Decree-Law No. 33 of 2021. Trusted by thousands of UAE expats.
- MOHRE Compliant
- 100% Free
- All Emirates
- Updated 2026
Estimate your end of service gratuity based on basic salary and service period.
What Is Gratuity in UAE?
When employment in the UAE ends due to resignation, termination, retirement, or contract completion, private sector employees who have completed at least one year of continuous service are legally entitled to receive gratuity (مكافأة), also known as an End-of-Service Benefit (EOSB).
This payment is not a bonus but a statutory right protected under Federal Decree-Law No. 33 of 2021. Article 51 of the law outlines the rules and formula used to calculate gratuity based on factors such as basic salary and total years of service. However, many employees are uncertain about the amount they should receive.
A free online Gratuity Calculator UAE removes this confusion by providing an instant and accurate estimate. Simply enter your details to get a MOHRE-compliant result within seconds, without relying on HR calculations or having to interpret complex legal provisions.
This information has been reviewed in accordance with the 2026 UAE Labour Law provisions by an HR and labour law professional.
Why Use an Online Gratuity Calculator?
Calculating gratuity manually can be confusing, especially when different formulas and employment rules are involved. An online gratuity calculator eliminates this hassle by doing all the calculations for you. All you need to do is enter the required information, and the tool instantly provides your estimated gratuity amount.
The UAE Gratuity Calculator takes the uncertainty out of end-of-service benefit calculations. Instead of relying on assumptions or performing lengthy calculations yourself, you can obtain a clear and reliable estimate within seconds.
⚡ Instant Results
Get your estimated gratuity amount within seconds.
🎯 Accurate Calculations
Automated calculations help reduce mistakes and improve accuracy.
✅ MOHRE-Based Formula
Designed according to applicable UAE labour regulations.
🧮 No Manual Work
Avoid lengthy calculations and estimate your benefits instantly.
Who Qualifies as an Eligible Employee?
Private Sector Employees
Any private sector employee who has worked for the same employer for at least one full year qualifies for gratuity.
UAE Nationals & Expat Workers
This applies to both UAE nationals and expatriate workers.
Part-Time Employees
Part-time employees also qualify under the 2021 law, with benefits calculated on a pro-rata basis.
Free Zone Employees
Workers employed in free zones such as JAFZA, DMCC, and Dubai South are covered by federal law unless they are in DIFC or ADGM.
What Counts as Basic Salary in UAE Gratuity?
Only your basic monthly salary is used in the gratuity formula. Housing allowances, transport allowances, food allowances, commissions, and any other benefits are excluded from the calculation.
Always check your employment contract for the specific basic salary figure. The number on your bank transfer may include allowances, which are not part of the gratuity base.
How to Calculate Gratuity in UAE — Step-by-Step Formula
The calculation is straightforward once you understand the two rules that govern it. Follow these steps to verify your own entitlement or simply use our Online Gratuity Calculator UAE above to get the result automatically.
1
Identify your basic monthly salary.
2
Calculate your daily wage.
3
Apply the 21-day rule for years 1–5.
4
Apply the 30-day rule for years beyond 5.
5
Add both portions and check the maximum cap.
The 21-Day Rule (First 5 Years of Service)
For every completed year during your first five years with an employer, you earn the equivalent of 21 calendar days of your basic salary. So if you worked for exactly three years, you would receive 21 days × 3 = 63 days of basic pay as your gratuity. This applies under Article 51 of the current labour law.
Years 1–5
21 Days
Basic Salary
Per Completed Year
The 30-Day Rule (After 5 Years)
Once you cross the five-year mark, each additional year of service earns you 30 days of basic salary. This higher rate rewards long-serving employees. A person who has worked for 8 years would receive:
(21 days × 5 years) + (30 days × 3 years) = 105 + 90 = 195 days of basic pay.
After 5 Years
30 Days
Basic Salary
Per Additional Year
21-Day Rule vs 30-Day Rule
First 5 Years
- 21 Days Basic Salary
- Per Completed Year
- Standard Rate
After 5 Years
- 30 Days Basic Salary
- Per Additional Year
- Higher Rate
Gratuity for Partial Years — Prorated Calculation
If your service period includes a partial year, say you worked 3 years and 7 months the last incomplete year is calculated on a prorated basis. Your daily wage is multiplied by 21, then multiplied by the fraction of the year you completed.
For example, 7 months = 7/12 of a year, so you receive 21 × (7/12) = 12.25 days of basic salary for that partial year.
Example
3 Years + 7 Months
↓
3 Full Years
+
7 / 12 Year
=
Prorated Gratuity
The 2-Year Maximum Cap — Legal Limit Explained
Regardless of how many years you have worked, your total gratuity cannot exceed the equivalent of 24 months (two years) of basic salary. This cap applies to all private sector employees covered by Federal Decree-Law No. 33 of 2021.
Most employees reach this ceiling only after 20+ years of service, but it is important to know the legal limit exists.
Maximum Gratuity Limit
24 Months
(Two Years Basic Salary)
Gratuity Calculation Formula — Example Table
Based on AED 6,000 basic monthly salary. Cap = AED 144,000 (24 months × AED 6,000).
UAE Gratuity Calculator Examples (Real Numbers)
Example 1 — 2 Years Service
Basic Salary: AED 5,000
- Daily Wage = AED 166.67/day
- 21-Day Rule (2 years)
- Total Gratuity = AED 7,000
Example 2 — 7 Years Service
Basic Salary: AED 10,000
- Daily Wage = AED 333.33/day
- 21-Day Rule (5 years)
- 30-Day Rule (2 years)
- Total Gratuity = AED 45,000
Example 3 — Resignation After 3.5 Years
Basic Salary: AED 8,000
- Daily Wage = AED 266.67/day
- 21-Day Rule (3 years)
- Prorated 6 Months
- Total Gratuity = AED 19,600
How the Gratuity Calculation Works
Basic Salary
↓
Daily Wage
↓
21-Day Rule
↓
30-Day Rule
↓
Total Gratuity
↓
2-Year Maximum Cap
Gratuity Rules for Different Employment Types
Limited Contract (Fixed-Term)
A limited contract has a defined start and end date, typically one or two years.
Under the 2021 Labour Law, employees on limited contracts receive full gratuity whether they complete the contract, resign early, or are terminated as long as they have served at least one year.
Early resignation no longer disqualifies employees from their entitlement.
Unlimited Contract
An unlimited contract has no fixed end date.
Gratuity entitlement follows the same 21-day and 30-day formula.
Termination grounds and notice period disputes may affect the settlement process but not the gratuity amount itself.
Free Zone Employees
Employees working in JAFZA, DMCC, and Dubai South are generally covered under federal labour law.
The standard gratuity rules apply to them in full.
DIFC & ADGM
DIFC and ADGM operate under their own employment frameworks.
The federal gratuity formula does not apply to employees working in these jurisdictions.
Special Gratuity Scenarios in UAE
Gratuity If You Resign
Under Federal Decree-Law No. 33 of 2021, resignation no longer reduces or eliminates gratuity entitlement.
As long as you have completed one year of service, you are entitled to the full prorated amount.
Gratuity If You Are Terminated
Termination for reasons other than gross misconduct entitles employees to full gratuity.
Outstanding leave balance and other settlement components are paid separately.
Gratuity After Misconduct Dismissal
Article 44 allows employers to forfeit gratuity in cases involving serious misconduct.
Employees may file a dispute through MOHRE if they believe the dismissal was unjust.
Part-Time Employees
Part-time employees are entitled to gratuity under the 2021 Labour Law.
The amount is calculated on a pro-rata basis according to working hours.
Domestic Workers
Housemaids, drivers and nannies are covered under separate ministerial regulations.
They are entitled to one month’s wage per year of service after completing two years.
Effect of Unpaid Leave
Periods of unpaid leave are deducted from the service period used for gratuity calculations.
Maintaining proper records helps avoid disputes during final settlement.
Employer’s 14-Day Payment Deadline
By law, your employer must pay all end-of-service benefits including gratuity within 14 calendar days of your last working day.
↓
⏳ 14 Calendar Days
↓
💰 Employer Must Pay
↓
⚖ File Complaint Through MOHRE
Can Employer Deduct from Gratuity?
Under Article 135 of the Labour Law, your employer may deduct from your gratuity only amounts that are legally owed to them such as company loans not yet repaid, or damages caused by the employee as established by a court.
Employers cannot make arbitrary deductions for performance reasons or notice period disputes without a legal basis.
UAE Gratuity Is 100% Tax-Free
0%
Income Tax
The UAE does not levy income tax on individuals. Your full gratuity amount is paid to you without any government deduction — no withholding tax, no social contribution deduction.
Gratuity Dispute? Here’s What to Do
If your employer fails to pay gratuity on time or pays less than your entitlement, raise a formal complaint through the MOHRE website or by visiting a Labour Relations Office.
Employer Refuses Payment
The employer delays or pays less than the actual gratuity amount.
File Complaint Through MOHRE
Submit your grievance through MOHRE or a Labour Relations Office.
Mediation Process
MOHRE will first attempt to resolve the issue through mediation.
Labour Court
If mediation fails, the matter may be referred to the Labour Court.
Related UAE Employment Guides
UAE Labour Law Guide
Understand employee rights, employer obligations, leave rules, notice periods and end-of-service benefits under UAE labour regulations.
Read Guide →UAE Labour Card Guide
Learn how to check your labour card details, work permit information and employment records in the UAE.
Read Guide →MOHRE Gratuity Calculator for Dubai, Abu Dhabi, Sharjah & All UAE
Our End of Service Calculator UAE works for employees in every emirate. Whether you are based in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, or Umm Al Quwain, the federal gratuity law applies equally to all private sector workers.
| Emirate | Covered by Federal Law |
|---|---|
| Dubai | ✅ Yes |
| Abu Dhabi | ✅ Yes |
| Sharjah | ✅ Yes |
| Ajman | ✅ Yes |
| Ras Al Khaimah | ✅ Yes |
| Fujairah | ✅ Yes |
| Umm Al Quwain | ✅ Yes |
Disclaimer
For informational purposes only. The content on this page including all gratuity calculations, legal references, and examples is provided to help employees and HR professionals understand UAE end-of-service benefit rules.
It is based on Federal Decree-Law No. 33 of 2021 and MOHRE guidance current as of 2026.
This content does not constitute legal advice. Individual circumstances can vary significantly — including contract type, employer policies, free zone jurisdiction, and case-specific factors.
For disputes or complex situations, consult a licensed UAE labour lawyer or contact the Ministry of Human Resources and Emiratisation (MOHRE) directly.
Frequently Asked Questions
How is gratuity calculated in UAE 2026?
Gratuity is calculated using your basic monthly salary only. You receive 21 days of basic pay per year for the first five years of continuous service, and 30 days per year after that.
Is gratuity calculated on basic salary only in UAE?
Yes. Only your basic monthly salary forms the base for gratuity calculation. Housing allowances, transport and other benefits are excluded.
What is the maximum gratuity amount in UAE?
The maximum gratuity payout is capped at two years’ basic salary equivalent to 24 months.
Do I get gratuity if I resign in UAE?
Yes. Employees who complete at least one year of continuous service are entitled to full gratuity upon resignation.
Is UAE gratuity taxable?
No. The UAE does not impose personal income tax and gratuity is completely tax-free.
Why Thousands of UAE Employees Use This Calculator
Instant Results
Calculate your gratuity amount within seconds without manual calculations.
MOHRE-Based Formula
Built according to Federal Decree-Law No. 33 of 2021 and current UAE labour regulations.
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