Gratuity Calculator UAE 2025

Calculate your end of service benefits according to UAE labor law. Our gratuity calculator provides accurate estimates based on your salary, years of service, and contract type.

UAE Gratuity Calculator

AED

Enter your basic salary only (excluding allowances).

You can use decimals for partial years (e.g., 5.5 for 5 years and 6 months).

Frequently Asked Questions (FAQs) About Calculating Gratuity in Dubai and the UAE

Understanding Gratuity in the UAE

Gratuity is a lump-sum payment given to employees at the end of their service as per UAE Labour Law. It's an important benefit that recognizes an employee's years of service and contribution to the company.

Eligibility Criteria

  • You must complete at least one year of continuous service to be eligible for gratuity.
  • Gratuity is calculated based on your basic salary (excluding allowances).
  • The total gratuity amount is capped at an equivalent of two years' basic salary.

Calculation Formula

Under both the old and new UAE labour laws, gratuity is calculated as follows:

  • 21 days of basic salary for each year of the first five years of service
  • 30 days of basic salary for each additional year beyond five years

Changes Under the New Labour Law

The UAE implemented a new labour law (Federal Decree Law No. 33 of 2021) effective February 2022, which brought some changes:

  • All employment contracts are now limited-term contracts.
  • Employees now generally receive full gratuity regardless of resignation or termination (provided they complete at least one year of service).
  • The calculation formula (21 days/30 days) and two-year cap remain the same.

Disclaimer: While this calculator provides estimates based on UAE labor law, individual employment contracts or company policies may have variations. For definitive gratuity calculations, please consult with a legal professional or refer to the Ministry of Human Resources and Emiratisation (MOHRE).