Online Gratuity Calculator UAE 2026

Most UAE employees only discover that their gratuity was miscalculated after they have already signed the final settlement. By then, recovering the difference is difficult. This gratuity calculator UAE gives private-sector expatriate employees an independent estimate before they sign anything.

Gratuity in the UAE is calculated under Federal Decree-Law No. 33 of 2021 and its updated 2026 MOHRE rules. The rules vary by contract type, service length, and employer. This tool covers mainland employees and most free zone employees. It supports both limited contracts and legacy unlimited contracts. Enter your basic salary and service dates to check your result with our end of service calculator UAE.

Written by: Noura Al-Qaseer, Senior HR Manager & UAE Labour Law Advisor (20+ years’ UAE private-sector HR experience)
Legally reviewed by: Adv. Marwan A. Hamid, UAE Labour Law Advocate
Last updated: September 2026. Next review: December 2026

Key UAE Workforce Facts (Verified Data)

Did you know?

• The UAE labour force passed 9 million people in 2024, with 9.2 million employed.
• The private sector employs about 85% of UAE workers, roughly 7.8 million people.
• Most private-sector employees qualify for end-of-service gratuity after one year.

Source: UAE Federal Competitiveness and Statistics Centre (FCSC), 2024 Labour Force Survey. Gratuity eligibility under Article 51, Federal Decree Law No. 33 of 2021.

What is the UAE Gratuity Calculator?

The UAE gratuity calculator is a free online tool for private-sector employees. Some employees also call this payment the indemnity, so this tool doubles as an indemnity calculator UAE. Enter your basic salary, contract type, and service dates. It applies MOHRE rules automatically and shows your end-of-service entitlement with a full year-by-year breakdown. Use it to verify your settlement before you sign. No account needed. No data stored.

What is Gratuity in the UAE?

End-of-service gratuity (مكافأة نهاية الخدمة) is a payment your employer must make when your job ends in the UAE. It is calculated on your basic salary under Article 51 of Federal Decree Law No. 33 of 2021.

The amount depends on your salary, years of service, and contract type. Check your gratuity instantly by entering your salary and dates above. If you are planning for the long term, see how far your gratuity could go in retirement.

How to Use the UAE Gratuity Calculator? (Step-by-Step)

If you prefer a quick walkthrough, watch the video tutorial.

This MOHRE gratuity calculator follows official UAE rules. Follow these steps to avoid manual mistakes. The calculator applies the mainland and MOHRE-aligned rules, pro-rata logic, unpaid-leave adjustments, and the mainland cap automatically. ADGM uses Annual Basic Wage ÷ 365 and has no mainland cap.

Basic Options (Required Inputs)

• Basic Salary: Enter your monthly basic pay, excluding allowances such as housing or transport. The calculator uses base pay only.
• Start Date: Enter your date of joining.
  End Date: Enter your last working day.

Use dd/mm/yyyy format, for example 15/03/2022. The tool calculates your total service period automatically. It shows no entitlement if your service is less than one year.

Advanced Options (Optional)

• Part-Time (%): Enter 100% for full-time or your actual percentage for part-time work.
• Unpaid Leave: Add unpaid days so service length is adjusted correctly.
• Wage Frequency: Choose Daily, Weekly, or Monthly.
• Contract Type: Select Limited or Unlimited.
• Leaving Reason: Choose Resignation or Termination.
• ADGM: Tick the ADGM Employee checkbox if you are an ADGM employee.

After You Click “Calculate My Gratuity”

• Estimated Gratuity: Shows your total entitlement amount.
• Year-Wise Breakdown: Displays each service year with days and payout earned.
• Formula Used: The formula used shows the calculation method applied under UAE Labour Law, including 21-day, 30-day, and cap rules.
• Next Actions: Copy the results or download the PDF as evidence, or continue exploring guides and worked examples.

How is gratuity calculated in the UAE?

In the UAE, gratuity is calculated on your last basic salary only. Your daily wage equals your basic salary divided by 30. The number of eligible days per year depends on your total years of service. A two-year cap limits the maximum payout. The components below show each part of the formula.

Basic Salary Only

Your benefit is always calculated on your last basic salary, not your gross pay or allowances.

21-Day Rule (1–5 Years)

Employees receive 21 days of base salary p.a. during the first 5 years of continuous service, as per the requirement under UAE Labour Law.

30 Days Rule (5+ Years)

After completing five years, the rate increases to 30 days of basic salary p.a. under the latest UAE rules for long service.

Two-Year Cap

Your total end-of-service payout cannot exceed two years of base pay, as set by the UAE Law.

Deductions from Gratuity

Employers may deduct certain amounts from end-of-service benefits. These may include documented loans or overpayments. Article 51(7) and Article 29 set the rules.

Payment to Legal Heirs

If an employee passes away, any unpaid employment dues are handled through the applicable legal process for the employee’s estate and beneficiaries.

Why Use This Online Gratuity Calculator UAE?

Fast, accurate, and transparent. Built to help you understand your rights.

Unpaid Leave Adjustment

The EOSB calculator automatically subtracts unpaid leave from your service days, so your estimate reflects the unpaid leave rule that many tools ignore.

Part-Time Work Support

Built-in support for UAE part-time end-of-service calculation. Enter your percentage and the tool adjusts your benefit proportionally.

Transparent Math

Every result shows your daily wage, eligible days, cap limit and service years, so you can see exactly how your benefit was worked out.

ADGM Gratuity Option

The tool supports ADGM gratuity calculations using Annual Basic Wage ÷ 365 with no mainland two-year cap. For ADGM, enter the higher of your basic wage or 50% of your total wage for the selected pay period.

No Data Stored

Your inputs are 100% secure and never leave the page. The tool performs all calculations locally, ensuring full privacy and no data storage.

One-Click Copy & Download PDF

You can copy full computation—including formulas & breakdown—also you can download pdf to share or attach to your final settlement review, or use in a dispute.

This end of service calculator works for employees in Dubai, Abu Dhabi, Sharjah, and all other emirates. You do not need separate tools for each location.

2 Types of Employment Contracts: How Each Affects Your End-of-Service Payout

The UAE Labour Law changed under Federal Decree Law No. 33 of 2021, effective 2 February 2022. It replaced older unlimited contracts with a single mandatory format, the limited or fixed-term contract. However, many employees still hold older, unconverted unlimited contracts, which is why calculation rules continue to differ for legacy cases. Below is a clear, concise overview.

1- Limited Contracts

A limited contract has a defined start and end date and can be renewed with employer and employee agreement. After one year of service, you keep your full gratuity on a limited contract. This applies even if you resign before the contract end date. You must serve your full notice period under UAE Labour Law. Each renewal counts as continuous service, so your earlier years still count toward your payout.

2- Unlimited Contracts

Unlimited contracts were phased out under Federal Decree-Law No. 33 of 2021. All legacy contracts were required to convert to fixed-term by 31 December 2023. Some employees remain on unconverted contracts. The old gratuity rules apply to them until they convert. When old unlimited contracts are changed to limited ones, the earlier service is usually carried over and not reset.

Under the old system, settlement for unlimited contracts was different for resignation and termination. The main differences are shown in the legacy rules table below.

This deduction system was abolished under Federal Decree Law No. 33 of 2021. The new all-limited contract system ensures every employee receives their full entitlement after one year of service. For the full context of when legacy deductions still apply and how to dispute an incorrect calculation, see our Limited and Unlimited Contract guide.

Who Is Eligible for End-of-Service Benefits in the UAE?

You qualify for UAE gratuity in any emirate once you meet a few conditions. Eligibility turns on your service length, how your job ended, and your contract type. The checklist below sets out who is covered. Confirm your own case before you calculate.

• Completed at least one year of continuous service with the same employer.
• Probation counts toward service if you stay on.

For calculation purposes, gratuity is based on your last basic salary. Unpaid leave days are excluded from service time under Cabinet Resolution No. 1 of 2022. This minimum one-year rule applies to both limited and legacy unlimited contracts in the UAE.

Tip: Check your MOHRE app using your Emirates ID to confirm your registered contract type before calculating. The registered contract takes precedence over any paper version your employer holds.

Once you confirm your contract type, calculate your UAE eosb entitlement above in under a minute.

What Is the Gratuity Computation Formula in the UAE?

The computation for gratuity in UAE depends on your last basic salary, your daily wage, and your total years of continuous service. Article 51 sets the main formula. Cabinet Resolution No. 1 of 2022 covers pro-rata for partial years and excludes unpaid absence from the service calculation.

Our calculator follows these rules automatically.

Key Rules & Components at a Glance:

• Basic salary is used to compute gratuity. Housing, transport, and all other allowances are excluded.
• Continuous years of service determine whether the 21-day or 30-day rule applies.
• 21-day rate: applies for the first five years of service.
• 30-day rate: applies after completing five full years.
• Daily wage formula: Basic Salary ÷ 30.
• Pro-rata calculation applies to partial years, months, and days.
• Contract type matters. Limited contracts follow the new law; legacy unlimited may use old deduction rules.

Once your daily wage is known, use the rules shown below to work out your final entitlement.

Limited Contracts (UAE Gratuity Rules 2026)

These rules apply to all MOHRE contracts. The current gratuity rules are the same across all emirates for both resignation and termination. In all cases, benefit is based on your basic salary, the eligible gratuity days per year (21 or 30), and your total years of continuous service.

Unlimited Contracts (Legacy UAE Gratuity Calculation)

Legacy unlimited contracts used older rules where resignation and termination produced different benefit amounts. These rules apply only if the employee stayed on an unlimited contract and did not convert to a fixed-term contract. The conversion deadline was 31 December 2023.

Resignation: Legacy Unlimited Formula

Employees on legacy unlimited contracts received reduced amount when resigning before completing five years. The table below summarizes the resignation formula clearly.

Limited vs Unlimited Contract Gratuity Comparison

When the employer ended the contract (not for misconduct under Article 44), entitlement followed the full 21- and 30-day rules.

Resignation vs Termination (Legacy Unlimited)

This comparison helps you see the difference at each service length.

If you are comparing outcomes by exit type specifically, see our Termination vs Resignation guide for the full notice pay and Article 47 breakdown.

Contract Type Comparison: End-of-Service Payout at a Glance

A clear, at-a-glance view of how formulas change across both contract types.

End-of-Service Calculation Examples (Limited and Legacy)

These are illustrative examples. For your exact figure, enter your salary and dates in the calculator. It applies every rule automatically including pro-rata calculations. For a full explanation of how the tool works, see our methodology page.

What Is the Maximum Gratuity Payout in the UAE?

The UAE Labour Law sets a strict two-year cap on gratuity, meaning your total EOS payout cannot exceed 24 months of basic salary, no matter how long you work. This limit applies to both limited and unlimited contracts in MOHRE-based companies, and free zones that follow UAE labour rules apply the same cap.

For example, if your basic wage is AED 10,000, the maximum amount you can receive is 10,000 × 24 = AED 240,000.

Important: ADGM uses Annual Basic Wage ÷ 365 and has no mainland two-year cap. Tick the ADGM Employee checkbox. Enter the higher of your basic wage or 50% of your total wage for the selected pay period. The tool uses the figure entered and does not verify the 50% rule.

Domestic Worker End-of-Service Benefits (Different Legal Framework)

Domestic workers such as live-in helpers, maids, and nannies are governed by Federal Decree Law No. 9 of 2022. Their final payment rules fall under a separate legal framework, not the main labour law 33. Their formula differs from standard EOSB. In practice, most settlements use a 14-day per year calculation based on basic salary.

Note: The 14-day formula comes from a repealed law. It remains the industry standard in practice. Confirm the applicable formula with your sponsor before relying on the figure for a final settlement. Use the Domestic Worker Gratuity Calculator to estimate your entitlement, then confirm the applicable formula with your sponsor before relying on the figure for a final settlement.

End-of-Service Rules for Part-Time and Freelance Employees

Part-time, temporary, and freelance arrangements follow different settlement rules, but all are based on how the worker is classified and how many hours they actually work.

Part-Time & Temporary Employees

• Benefit rules depend on work pattern under the law and its implementing rules
• Paid proportionally based on the working hours ratio
• Uses last basic salary and total service period
• Part-time → full-time: split calculation (proportional + standard)

Freelancers and Gratuity in the UAE

• Freelance visas do not include gratuity
• It applies only if hired under a MOHRE employment contract
• MOHRE may reclassify misclassified freelancers and grant full benefits

End-of-Service Savings Scheme UAE

• Some free zones offer an investment-based end of service savings scheme
• Designed for part-time and flexible workers as an alternative to lump-sum EOSB.

Gratuity vs Tip

Gratuity is a legal end-of-service payment your employer must make when you leave. A tip is a voluntary amount a customer gives for good service. They are governed by completely different rules and have no connection to each other. For a clearer side-by-side explanation, read our guide on the difference between gratuity and tip.

Free Zone vs Mainland End-of-Service Rules in the UAE

Most free zones in the UAE, including RAKEZ, TECOM, JAFZA, and DMCC, follow the same calculation rules as the mainland under Decree Law 33. So employees across these zones can rely on the same approach for severance and gratuity calculations.

Some of these zones add their own exit paperwork on top of the same calculation. In JAFZA, for example, companies must sign an End of Service Entitlement Form before visa cancellation is approved. This doesn’t change the amount owed, only the process for finalizing it.

There are two main exceptions:

• ADGM does not apply the usual two-year cap on gratuity. The calculator includes a simple option to remove this limit for ADGM staff.
• In DIFC, the traditional gratuity lump-sum on leaving service has been replaced by mandatory workplace savings schemes like DEWS. Employees should check their own contributions and scheme balance instead of using MOHRE-style days.

With just basic wage and service dates, employees can quickly estimate their payout using the tool for free zone payout and settlement calculations. For a full comparison of mainland, standard free zones, DIFC, ADGM, and government employment, see our UAE gratuity rules by sector guide.

UAE Final Settlement Calculation: What Is Included?

Employers must release all dues within the legal timeframe. Mainland and MOHRE-aligned free zone employers must pay within 14 days from the contract end date. ADGM employers must pay wages and amounts owing within 21 calendar days of the termination date. Since this tool calculates UAE gratuity only, the final settlement must be computed separately. Your full settlement includes everything your employer owes you at the end of your job. It is wider than EOSB and can include:

• Unpaid salary
• Unpaid overtime
• Leave encashment
• Notice period pay in lieu
• Gratuity and other EOS benefits
• Approved deductions such as loans, fines, or advances

These items together form the final settlement amount and show the difference between EOSB and full settlement benefits in the UAE. To calculate the leave component separately, use our leave encashment calculator. Use our overtime calculator to check what your employer still owes you for extra hours worked.

For the full employee-rights context behind settlement-termination rules and leave entitlements read our UAE Labour Law guide. Planning to resign? See how to write a resignation letter in the UAE before confirming your notice date and final working day. To check your resignation date, notice period, last working day, and settlement deadline, use our UAE Notice Period Calculator. To formally request your payment from HR, use the Gratuity Application Letter Generator.

If your employer’s gratuity figure is lower than your calculation, see how to appeal an underpaid gratuity calculation in the UAE and what evidence to prepare.

9 Expert Tips to Maximise Your End-of-Service Payout in the UAE

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Here are practical ways to increase your end-of-service benefits and avoid mistakes that reduce your payout. These simple steps make it easier to understand how to maximize separation benefits in the UAE and protect what you are legally entitled to receive.

1. Understand the basics of UAE labour law
Basic knowledge of UAE labour rules helps you track your rights, your daily wage, and how gratuity is calculated in UAE. It also keeps you aware of the correct steps when leaving a job.

2. Review your employment contract carefully
Check your basic salary and contract type. When you renew, ask if more of the package can go to basic salary. A higher basic means a higher payout.

3. Keep organised records of your employment documents
Save your salary slips, joining report, work permit and labour card, and renewal letters. These records make your end-of-service calculation in UAE simple to confirm when you resign.

4. Serve your full notice period
A completed notice period shows a clean exit. It helps you get your benefits on time and supports a smooth full settlement.

5. Stay until five full years for a higher benefit payment
Your rate increases from 21 to 30 days per year after the fifth year. Reaching this point can boost your payout.

6. Calculate your expected amount early using a gratuity calculator Dubai
Using our gratuity calculator Dubai to check your amount in advance helps you understand what you should receive at the end of service.

7. Clear any loans or advances before requesting settlement
Pending dues may reduce your amount. Clearing them early helps you receive your full benefits without deductions.

8. Discuss concerns with your employer and follow up politely
If your figures do not match your own computations, speak with your employer in writing and follow up until everything is clear.

9. Know when to go to MOHRE for a dispute
If your company delays payment or deducts amounts unfairly, MOHRE can help you resolve the issue and protect your rights.

10 Common Gratuity Calculation Mistakes to Avoid

Many people miscalculate their gratuity because they use the wrong salary, dates, or rules. Small errors can create a big difference between what you expect and what you actually receive. Here are the most common mistakes to avoid:

1

Using gross salary instead of basic salary when calculating EOS. If your offer letter shows a CTC figure, see our CTC and gratuity guide.

2

Ignoring unpaid leave days, which can reduce the payable amount.

3

Selecting the wrong contract type (limited vs legacy unlimited).

4

Misapplying legacy unlimited-contract resignation rules, even though they no longer apply.

5

Forgetting the two-year cap, which limits the maximum payout.

6

Using outdated Labour Law 1980 formulas instead of the current Decree Law 33.

7

Entering incorrect service dates, which produces the wrong total service length.

8

Using the wrong daily wage formula (must be base pay ÷ 30).

9

Not accounting for part-time ratios, causing over- or under-calculations.

10

Relying on HR calculations without verifying independently.

Our gratuity calculator Dubai or UAE prevents these errors automatically by applying MOHRE rules and calculating your service period, daily wage, and entitlement with precise inputs. For worked AED examples and the correct formula behind each mistake, see our complete guide to UAE gratuity calculation errors.

Can Gratuity Be Reduced, Delayed or Denied?

Under Federal Decree-Law No. 33 of 2021, your gratuity can only be reduced, delayed, or denied in specific cases. UAE Labour Law sets these limits. Employers cannot change them.

Gratuity Reduction (Deductions)

Your payout may be reduced if:

• Unserved notice period is deducted from your final settlement
• Documented loans, advances, or fines are deducted if properly recorded. Our guide on gratuity deductions covers the full list and a free checker tool.
• Legacy unlimited contracts may still face old-law resignation reductions on past service (like losing one-third or two-thirds before 5 years), but this does not apply to new limited contracts

Does Article 44 Dismissal Cancel Gratuity?

• No. Article 44 dismissal does not automatically cancel your gratuity.
• Article 44 allows dismissal without notice in specific cases.
• Article 51 governs end-of-service gratuity.
• Any deduction must follow Article 51(7) and Article 29 of Cabinet Resolution No. 1 of 2022.
• Contact MOHRE if you dispute the amount.

If your settlement is delayed or unpaid, send a formal written demand first using the Gratuity Application Letter Generator, then file a complaint directly with MOHRE if it goes unanswered. You have two years from the date your employment ends to bring a labour claim, under Article 54(9) of Federal Decree Law No. 33 of 2021, as amended by Federal Decree-Law No. 9 of 2024. The full dispute process, complaint steps, and contact details are in our UAE Labour Law guide.

Browse common final settlement and resignation questions in our UAE Gratuity FAQ.

Final Words

Getting your end-of-service amount right matters, and many calculators do not reflect every rule that affects your entitlement. This platform uses complete computation for gratuity in the UAE. It covers unpaid-leave deductions, part-time ratios, legacy contract logic, ADGM settings, and the two-year cap. The result is a clear and dependable estimate in line with UAE labour law and MOHRE rules. With transparent formulas and year-wise details, you can review your EOSB confidently and understand exactly what you’re owed, without depending on anyone else.

Ready to check your figure? Use our UAE Gratuity Calculator
and get your result before your last working day.