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Gratuity Calculator

UAE Gratuity Calculator

Calculate your end-of-service benefits accurately based on UAE labor law. Get instant results for your gratuity entitlement.

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Calculate Your Gratuity

Determine your end-of-service benefits based on UAE labor law

Your basic monthly salary excluding allowances
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Your Gratuity Calculation

Based on UAE labor law provisions

Total Gratuity Amount
0 AED
Total Service Period
0 Years
📌 Calculation Method:

This calculation follows UAE Federal Decree-Law No. 33 of 2021. The gratuity is calculated as 21 days of basic salary for each of the first 5 years of service, and 30 days of basic salary for each additional year thereafter. The maximum gratuity amount is capped at 2 years of basic salary.

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Instant Calculations

Real-time gratuity calculations based on UAE labor law

Accurate Results

Precise calculations following Federal Decree-Law No. 33

Free to Use

No hidden fees or subscription required

Understanding Gratuity in UAE

Gratuity is an end-of-service benefit that every employee in the UAE is entitled to receive upon completion of their employment contract. It serves as a financial cushion and acknowledgment of your service to the organization.

What is Gratuity?

Gratuity, also known as end-of-service benefit, is a mandatory payment that employers must provide to employees upon termination of their employment contract. It is calculated based on your basic salary and length of service with the company.

Legal Framework

Gratuity calculations in the UAE are governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations. This law replaced the previous UAE Labour Law and came into effect on February 2, 2022.

Eligibility Criteria

All employees who have completed at least one year of continuous service are entitled to gratuity. This applies to both limited-term and unlimited-term employment contracts, regardless of nationality or position.

Calculation Basis

Gratuity is calculated based on your basic salary only. Allowances such as housing, transport, or other benefits are not included in the gratuity calculation. The daily wage is derived by dividing your monthly basic salary by 30.

Gratuity Calculation Rules

Standard Calculation Method

For employees with continuous service, gratuity is calculated as follows:

  • First 5 years: 21 days of basic salary for each year
  • After 5 years: 30 days of basic salary for each additional year
Example: 7 years service with AED 6,000 monthly salary
First 5 years = (6,000 ÷ 30) × 21 × 5 = AED 21,000
Next 2 years = (6,000 ÷ 30) × 30 × 2 = AED 12,000
Total Gratuity = AED 33,000

Maximum Gratuity Cap

The total gratuity amount cannot exceed the equivalent of two years' basic salary, regardless of your length of service.

Important Points to Remember

  • Partial Years Count: Gratuity is calculated proportionally for partial years. For example, 3 years and 6 months of service counts as 3.5 years.
  • Basic Salary Only: Only your basic salary is used for calculation. Allowances, bonuses, and commissions are excluded.
  • Payment Timeline: Employers must pay gratuity within 14 days of the employment contract ending.
  • One Year Minimum: Employees who resign before completing one year of service are not entitled to gratuity.
  • Multiple Employments: Gratuity is calculated separately for each employment period. Service periods with different employers are not combined.

Need Professional Assistance?

While our calculator provides an accurate estimate, employment situations can be complex. Our accounting experts at Young & Right can help you:

  • Verify your gratuity calculation
  • Understand your employment contract terms
  • Navigate complex scenarios and disputes
  • Ensure compliance with UAE labor laws
Contact Our Experts
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