Gratuity Calculator UAE: End of Service Calculator
Use this free gratuity calculator UAE employees rely on to estimate end of service pay in seconds. It follows the current Labour Law rules, so it works as a Dubai gratuity calculator and for every other emirate.
What is gratuity in the UAE?
Gratuity, also called end of service benefit, is a lump sum an employer pays when a worker leaves after at least one year of continuous service. It rewards loyalty and acts as a cushion between jobs. The rules sit in Federal Decree-Law No. 33 of 2021, which applies to private sector employees on the mainland.
How is gratuity calculated in the UAE?
The calculation uses your last basic salary and your total service. First work out a daily wage by dividing basic salary by 30. Then apply the day counts below.
First 5 years: 21 days of basic salary for each year
After 5 years: 30 days of basic salary for each extra year
Daily wage: basic salary ÷ 30
Cap: total gratuity cannot exceed 2 years of basic salary
Part years are paid in proportion, and unpaid leave days are removed from your service length. Use the end of service calculator above to apply these steps automatically.
Gratuity calculation examples
3 years of service
Basic: AED 10,000
Daily wage: AED 333.33
3 × 21 days = 63 days
Gratuity: AED 21,000
8 years of service
Basic: AED 10,000
5 years × 21 days = AED 35,000
3 years × 30 days = AED 30,000
Gratuity: AED 65,000
6.5 years of service
Basic: AED 8,000
First 5 years: AED 28,000
1.5 years × 30 days = AED 12,000
Gratuity: AED 40,000
Who is eligible for gratuity in the UAE?
You qualify if you completed at least one full year of continuous service with the same employer. Employees on limited (fixed term) and unlimited contracts are both covered. Part-time and temporary staff are covered too, with service counted in proportion to the time worked.
Free zone rules can differ. DIFC employees, for example, are generally under the DIFC Employment Law and its savings scheme (DEWS), so check your free zone authority before relying on the mainland formula.
Does resignation affect gratuity?
Under the current law, resigning does not cut your gratuity. Older rules reduced the payout for people who resigned early in their service, but that reduction is no longer part of the main formula. What still matters is that you finished one year and served your notice period.
Gratuity can be questioned in cases of serious misconduct dismissal, so read your contract and confirm with the Ministry of Human Resources and Emiratisation (MOHRE) if that applies to you. Employers are expected to settle dues within 14 days of the contract ending.
Is gratuity calculated on basic salary or gross salary?
Gratuity is calculated on basic salary only. Housing, transport, and other allowances are left out. That is why a package of AED 20,000 with a basic of AED 10,000 produces a gratuity based on AED 10,000. Check your contract to confirm how your salary is split, since a low basic means a lower end of service payout.
| Salary part | Counted in gratuity? |
|---|---|
| Basic salary | Yes |
| Housing and transport allowance | No |
| Bonus and commission | No |
Using your gratuity for UAE property
Many expats treat their end of service payout as a first property fund. A lump sum can cover part of a down payment or the registration costs on a purchase. In Dubai, the Land Department transfer fee is typically 4% of the property price, so on a AED 1.5 million apartment that is AED 60,000.
Before leaving a job, remember that banks usually want proof of steady employment for a mortgage. Applying while you are still employed, then using your gratuity for upfront costs, is often smoother. Read our guides on buying property in Dubai and mortgage rules for expats to plan the next step.
Frequently asked questions
What is the best gratuity calculator in UAE?
Any calculator is only as good as its inputs. Use your last basic salary, exact service dates, and remove unpaid leave to get a reliable estimate.
Is there a gratuity calculator for Dubai only?
No separate formula exists for Dubai. A Dubai gratuity calculator uses the same federal rules as the rest of the mainland UAE.
When must the employer pay gratuity?
Final dues, including gratuity, should be paid within 14 days after the contract ends.
How much gratuity will I get after 1, 2, 5 and 10 years?
On a basic salary of AED 10,000, gratuity is about AED 7,000 after 1 year, AED 14,000 after 2 years, AED 35,000 after 5 years, and AED 85,000 after 10 years. The 10 year figure is AED 35,000 for the first 5 years plus AED 50,000 for the next 5 years at 30 days each.
Is gratuity taxable in the UAE?
The UAE does not charge personal income tax on salaries or end of service gratuity. If you are tax resident in another country, such as your home country, that country may still tax the payout, so check its rules before transferring the money.
What if I leave before completing one year of service?
You are not entitled to gratuity if you complete less than one year of continuous service. You are still owed your final salary, unused annual leave, and any other dues, so ask for a full settlement statement.
Is gratuity based on my last salary or my average salary?
Gratuity is based on your last basic salary at the end of service, not an average of earlier years. A raise in the final year therefore lifts the whole payout, which is worth knowing when you plan your exit date.
What can I do if my employer does not pay my gratuity?
Ask for a written settlement first. If it is not paid within 14 days of your contract ending, you can file a complaint with MOHRE through its app or website. Unresolved cases can move to the labour court, so keep your contract, payslips, and resignation letter.
Do free zone employees get gratuity in the UAE?
It depends on the free zone. Many free zones follow the federal rules, while DIFC uses the DEWS savings scheme and ADGM has its own employment regulations. Check your free zone authority and your contract before using any calculator.
Can I use my gratuity as a down payment on a home in Dubai?
Yes, a gratuity payout is cash you can put toward a property. For expats buying a first home under AED 5 million, banks typically ask for a down payment of around 20%, plus about 4% Dubai Land Department fees and other costs. Compare mortgage offers before you spend the lump sum, and keep some savings in reserve.
This calculator gives an estimate for general guidance only and is not legal advice. Confirm your final figure with your employer, your contract, or MOHRE.