Free Tool · New 2026
UAE End of Service Gratuity Calculator
Enter basic salary and total years of service to estimate the end-of-service gratuity owed under UAE labour law — 21 days' basic pay per year for the first 5 years, and 30 days' basic pay per year after that, capped at two years' total salary.
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The UAE gratuity formula
- First 5 years of service: 21 days' basic salary for each year
- After 5 years of service: 30 days' basic salary for each additional year
- Cap: Total gratuity is generally capped at two years' total salary
- Gratuity is calculated on basic salary only, not including housing, transport or other allowances
An employee generally needs to complete at least one full year of continuous service to be entitled to gratuity. Calculations can vary slightly for early resignation under certain contract types versus termination by the employer, and rules have been updated over time — always verify against current MOHRE guidance for a specific case.
This is an estimate, not legal advice
UAE gratuity rules have specific provisions depending on contract type, reason for leaving, and unpaid leave periods that can affect the final figure. This calculator gives a solid planning estimate using the standard formula — for an exact, legally binding calculation, consult MOHRE guidance or an employment lawyer.
Frequently asked questions
Basic salary only - housing, transport and other allowances are not included in the standard UAE gratuity calculation.
Yes, an employee generally needs to complete at least one full year of continuous service to become eligible for end-of-service gratuity.
Yes, total gratuity is generally capped at two years' worth of total salary under UAE labour law, regardless of how many additional years were served beyond that.
It can, depending on your specific contract type and notice period served - some scenarios reduce the gratuity percentage for early resignation, so this calculator's estimate assumes a standard full-entitlement scenario.