UAE Gratuity Calculator
Estimate end-of-service gratuity under UAE Labour Law.
Your figures
Result
How to use this tool
- Enter your own figures over the defaults — Basic monthly salary (AED), Years of service, Contract.
- The answer updates as you type. There is no button, and nothing is sent anywhere.
- Change Basic monthly salary (AED) on its own to see how much it moves the result — the worked example below shows exactly that.
Gratuity is calculated on basic salary only, not the total package — allowances for housing and transport are excluded. That surprises people whose basic is a small share of their package.
How it works
This takes 3 inputs — basic monthly salary (aed), years of service, contract — and returns estimated gratuity, daily wage used, basis and note. The whole calculation happens in this page as you type: there is no submit button, no request, and nothing stored.
Because it recalculates on every keystroke you can use it as a sensitivity test rather than a one-shot answer. Moving basic monthly salary (aed) alone from 8,000 to 8,800 changes estimated gratuity from 28,000.00 AED to 30,800.00 AED — the worked example below sets that out in full.
A worked example
Worked through with the figures the page already has in it: basic monthly salary (aed) of 8,000 and years of service of 5 years, and the rest as shown, giving estimated gratuity of 28,000.00 AED. These numbers come from running the calculator’s own code, not from being typed in here, so they cannot drift away from what you see on screen.
Starting from:
- Basic monthly salary (AED): 8,000
- Years of service: 5 years
- Contract: Unlimited / standard
| Result | Value |
|---|---|
| Estimated gratuity | 28,000.00 AED |
| Daily wage used | 266.67 AED |
| Basis | 21 days per year for the first 5, 30 days per year after |
| Note | Estimate only. Gratuity depends on contract type and reason for leaving under UAE Labour Law. |
What happens when one input moves
Holding everything else steady and changing Basic monthly salary (AED) from 8,000 to 8,800 — 10% — moves the answer like this:
| Figure | 8,000 | 8,800 |
|---|---|---|
| Estimated gratuity | 28,000.00 AED | 30,800.00 AED |
| Daily wage used | 266.67 AED | 293.33 AED |
| Basis | 21 days per year for the first 5, 30 days per year after | 21 days per year for the first 5, 30 days per year after |
| Note | Estimate only. Gratuity depends on contract type and reason for leaving under UAE Labour Law. | Estimate only. Gratuity depends on contract type and reason for leaving under UAE Labour Law. |
That is usually the number worth arguing over: it is easier to move than the headline amount, and the difference compounds across the whole term.
UAE Gratuity Calculator — frequently asked questions
How is UAE gratuity calculated?
21 days of basic pay for each of the first five years, then 30 days per year beyond five. It is based on basic salary, excluding allowances.
What if I resign before five years?
Under the older unlimited-contract rules, resigning early could reduce entitlement — one third between one and three years, two thirds between three and five. Rules changed under the 2022 labour law, so confirm your position.
Is gratuity capped?
Total gratuity cannot exceed two years of salary. This is an estimate — check with a UAE employment lawyer for anything consequential.
Is this calculator free?
Yes, with no account, no limits and no data collection. It runs entirely in your browser.
Should I rely on this for a financial or medical decision?
No. It is a planning estimate built on standard formulas and stated assumptions. For decisions that matter, speak to a qualified professional who can account for your full circumstances.
How accurate is the UAE Gratuity figure?
The arithmetic is exact. With the defaults on this page — basic monthly salary (aed) 8000, years of service 5 years, contract Unlimited / standard — it returns estimated gratuity of 28,000.00 AED. What limits accuracy is the assumptions, not the maths: change basic monthly salary (aed) to 8800 and the same formula gives 30,800.00 AED. Treat it as a well-founded estimate, not a quotation.
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Nothing is sent anywhere. The figures you type stay in this page and are never transmitted or stored — how that works.
Disclaimer. The formula is exact; the answer is only as good as the figures and assumptions above. Not financial, tax, medical or legal advice. Full disclaimer.