Gratuity Calculator: Dubai UAE

Gratuity Calculator UAE

Calculate your end of service benefits according to UAE Law

Calculator

How It Works

Employment Type

Basic Salary (AED)

Please enter a valid salary amount

Years of Service

Please enter valid years (0-50)

Additional Months

Please enter valid months (0-11)

Additional Days

Please enter valid days (0-30)

Termination Reason

Gratuity Calculation Results

Total Gratuity Pay AED 0.00

Important Legal Note

This calculator provides an estimate based on UAE Labor Law provisions. Actual gratuity payments may vary based on specific contract terms, company policies, or other factors. For precise calculations, please consult with your HR department or a legal professional.

How Gratuity is Calculated in UAE

The UAE Labor Law specifies different gratuity calculations based on employment type and termination reason:

For Unlimited Contracts:

Less than 1 year: No gratuity payable
1-5 years: 21 days of basic salary for each year of service
More than 5 years: 30 days of basic salary for each year of service

For Limited Contracts:

Before contract completion: No gratuity unless specified in contract
After contract completion: Same as unlimited contract calculation

Reductions:

If the employee resigns before completing 1 year, no gratuity is payable. If resigning between 1-3 years, gratuity may be reduced by 1/3 or 2/3 depending on circumstances.

Important Notes:

Gratuity is calculated on basic salary only (not including allowances)
Service periods are rounded to the nearest full year
Maximum gratuity cannot exceed 2 years’ salary

In the UAE, employees are entitled to end-of-service gratuity as part of their employment benefits under the UAE Labor Law (Federal Decree-Law No. 33 of 2021). Calculating gratuity can be complex, as it depends on factors like:

Type of employment contract (limited vs. unlimited)
Duration of service (years, months, and days worked)
Reason for termination (resignation, termination, retirement, or death)
Basic salary (excluding allowances)

To simplify this process, we’ve developed a UAE Gratuity Calculator that provides accurate, instant calculations based on the latest labor laws.

How to Use the UAE Gratuity Calculator

Our calculator is designed for ease of use while ensuring compliance with UAE regulations. Here’s how it works:

Step 1: Enter Your Employment Details

Employment Type
- Limited Contract: Fixed-term employment (specific end date).
- Unlimited Contract: Open-ended employment (no fixed end date).
Basic Salary (AED)
- Enter your monthly basic salary (excluding housing, transport, and other allowances).
Service Duration
- Years: Full years of service.
- Months: Additional months beyond full years.
- Days: Extra days beyond full months.
Termination Reason
- Resignation (employee-initiated)
- Termination (employer-initiated)
- Retirement
- Death

Step 2: Click “Calculate Gratuity”

The calculator instantly processes your inputs and displays:

Breakdown of gratuity calculation (per year, partial years, deductions if applicable).
Total gratuity amount in AED.

How Gratuity is Calculated in UAE

The UAE Labor Law specifies different gratuity rules based on contract type and service duration.

1. Unlimited Contract Gratuity Calculation

Service Duration	Gratuity Entitlement
Less than 1 year	No gratuity
1-5 years	21 days’ salary per year
More than 5 years	30 days’ salary per year (for each additional year beyond 5)

Example:

Basic Salary: AED 10,000
Service Duration: 6 years
Calculation:
- First 5 years: 5 × (21 × AED 333.33) = AED 35,000
- 6th year: 1 × (30 × AED 333.33) = AED 10,000
- Total Gratuity = AED 45,000

2. Limited Contract Gratuity Calculation

If contract is completed: Same as unlimited contract.
If terminated early (by employee): No gratuity unless contract specifies otherwise.

3. Reductions for Early Resignation

If an employee resigns before completing 5 years, gratuity may be reduced:

1-3 years of service: 1/3 reduction
3-5 years of service: 2/3 reduction

4. Maximum Gratuity Cap

The total gratuity cannot exceed two years’ basic salary.

Why Use Our UAE Gratuity Calculator?

Accurate & Up-to-Date – Complies with the latest UAE labor laws.
User-Friendly – Simple inputs, instant results.
Detailed Breakdown – Explains how each part of the gratuity is calculated.
Mobile-Friendly – Works on all devices.

Legal Considerations

Gratuity is based on basic salary only (not total salary).
Probation period may not count toward service years.
Company policies may offer better benefits than the legal minimum.
For precise legal advice, consult an HR expert or labor lawyer.

Final Thoughts

Understanding your end-of-service benefits is crucial for financial planning in the UAE. Our UAE Gratuity Calculator helps you estimate your entitlement quickly and accurately.

Try the calculator now and know your rights!

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