Gratuity calculator for the UAE (mainland)

Gratuity is paid on the last basic wage[source]. Basic wage is the contract wage without allowances or benefits in kind[source].

• Years 1 to 5: 21 days of basic wage for each year[source].
• Each year after 5: 30 days of basic wage[source].
• A part-year counts in proportion, once one full year is done[source].
• The total cannot exceed two years' wage[source].

Gratuity = daily basic wage × (21 × years up to 5 + 30 × years over 5)
Daily basic wage = monthly basic × 12 ÷ 365

The law does not say how to turn a monthly wage into a daily wage. It deems a year to be 365 days and a month to be 30 days[source]. We divide the yearly basic wage by 365. If you divide the monthly wage by 30 instead, the example below gives AED 9,900.00 instead of AED 9,764.38. Ask your employer which method they use.

We count whole years from your first working day. The last part-year is the share of that year you worked. Days absent without pay are taken off first.

• Less than one year. No gratuity. The right starts after one year of continuous service[source].
• Days absent without pay. They do not count as service[source]. Enter them and the calculator shortens your service.
• The two-year cap. The law says "two years' wage" and does not say basic or total wage[source]. We cap at 24 months of basic wage. At 21 and 30 days a year, the cap is reached after about 26 years of service.
• Part-time. Your contract hours divided by full-time hours, times the full-time gratuity[source]. The regulation uses yearly hours; we use weekly hours, which gives the same share if the weeks are the same. Temporary work gets no gratuity[source].
• Resignation or termination. Not covered. We have not verified any rule that pays a different amount depending on who ended the contract, so the calculator uses the same formula for both.
• Piece-rate pay. Not covered. Gratuity is then based on the average daily wage[source], which this calculator does not ask for.
• UAE nationals. Not covered. Their end-of-service benefit follows the pensions and social security law[source].
• Alternative savings scheme. If your employer moved you to the alternative end-of-service system, gratuity earned before you joined is calculated under the Decree-Law on your basic salary when you joined[source]. The scheme itself is not covered here.

Your employer must pay your wages and all other entitlements within 14 days of the end of the contract[source].

The employer may deduct amounts due by law or by a court judgment[source], under the conditions in the Executive Regulation[source]. The calculator shows the amount before any deduction.

This is general information, not legal advice. If your employer disagrees with the amount, an official channel decides, not this calculator.