How to Calculate your Gratuity in UAE (Gratuity Calculator 2025)

How to Calculate your Gratuity in UAE (Gratuity Calculator)

Are you planning to resign from your current job? Terminated, or leaving the UAE for good? As per the UAE Labour Law, all employees who have finished a full term of their employment contract are entitled to receive Gratuity or end-of-service benefit.

Your total gratuity depends on the following factors:

Type of contract
Total number of years served in the company
Reason for termination of contract
Basic salary

Which are the types of contracts?

There are two types of contracts in the UAE (Dubai, Abu Dhabi, Sharjah) – a limited or fixed term, or unlimited contract.

Limited contract

This means the employee agrees to stay with the company for the set date and number of years
Resigning before the end of this period can result in a labour ban, loss of labour rights or payment of compensation to the employer.

Unlimited Contract

No number of years and no end date.
One to three months of notice period is required

Below is a sample gratuity calculator UAE. Please note that these calculations are just for references purposes. For more accurate information, visit the UAE Ministry of Human Resources and Emiratisation (MOHRE).

Limited Contract – Gratuity Pay Calculator UAE

Duration of Service
Less than 1 year of service
If you leave work before you complete one year of service, you are not entitled to any gratuity pay or final settlement.

1 year – 5 years of service
The employee will receive full gratuity based on 21 days of salary

5 or more years of service
Employees are entitled with full gratuity pay based on 30 days salary for every year of work.

Example:
Basic salary example: AED 10,000

Identify your daily wage = 10,000 ÷ 30 = 333.30. Your daily wage is AED 333.30
Multiply daily wage by 21 or 30 (depending on duration of service in the company) = 333.30 x 21 = 6,999.30. So 21-days salary is AED 6,999.30 will be received for every year of service.
For those who have rendered more than 5 years of service, gratuity entitlement for each year of service is acceptable as long as the total figure does not exceed two years total salary figure.

Unlimited Contract – Gratuity Pay Calculator UAE

Duration of Service
Less than 1 year of service
Not entitled to any gratuity pay.

1 year – 3 years of service
Employee is entitled to one third (1/3) of the 21-days gratuity pay.

3 years – 5 years of service
Employee is entitled to two thirds (2/3) of the 21-days gratuity pay.

5 or more years of service
Employee is entitled to full 21-days gratuity pay.

Example:
Basic salary example: AED 10,000

Identify your daily wage = 10,000 ÷ 30 = 333.30. Your daily wage is AED 333.30
Multiply it by 21 = AED 333.30 x 21 = 6,999.30. So 21-days salary is AED 6,999.30
Get the 1/3 of this figure (1-3 years); 2/3 of the figure (3-5 years) to get the total gratuity pay.
For those who have worked 5 years or more, the full AED 6,999.30 is payable for each year if you have completed 5 years or more.

You can also refer to the MOHRE Gratuity Calculator online.
Source: Gulf News, September 29, 2018

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Comments (37)

I have ended my 2 years unlimited contract and my basic salary is 1200. what is my 2 years gratitude in this, if calculated?
By sohail malwankar (May, 2024) | Reply

I have ended my 2 years unlimited contract and my my basic salary is 1200. What is my 2 years gratitude because I will be returning to my country
By Anthony Godday Godwin (Oct, 2023) | Reply

My basic is 5050 and worked 16 years in the company
By Akhil sayed (Sep, 2023) | Reply

I have ended my 2years unlimited contract and my basic salary is is 800.what is my 2years gratitude in this , if calculated?
By Albert Larvai (Feb, 2023) | Reply

How much is my gratuity
By Alex Ayobami (Apr, 2023) | Reply

How to Calculate my final settlement in 3 years 7 months and 4 days. With PH not taken 90 hours of overtime and 10 days cancelled off.
By Ferlinda C. Racho (Oct, 2022) | Reply

How to calculate gratuity for, 3 years and 2mos unlimited contract. Terminated basic salary 1225. And how about the ticket.
By Juven Mariveles (Aug, 2022) | Reply

hello good morning, i want to know the about the UAE laws for gratuity. after 10 years working in unlimited contract company
By karthick kumaresan (Jul, 2022) | Reply

good day ma'am/ sir,I want to know how to claim the gratuity of 10years ,what the requirements and how to compute?my cousin inside dubai and he want to claim the gratuity , allready we have a plane ticket for a take vacation in Philippines on coming march,but he don't have edia how to claim the gratuity.please I need Ur help for information reply for guide me,thank u very much...
By benny solania (Jan, 2023) | Reply

completed 4 year and 3 month
By johnson T M (Jun, 2022) | Reply

Hi I'm completing my 4years under unlimited contract, and basic is 1500, can someone give me the correct calculation,as they are saying
By MUTUMWA Amina (Mar, 2023) | Reply

Hi I am completing my 14 years in rak free zone company my basic salary 3500 how much I getting
By Zaheer (May, 2022) | Reply

If I am working for 4 years under Unlimited contract, and basic is 1500 , can someone give me the correct calculation , as they are saying only 14 days I can get - same that im only working for a year. Please help me clarify this. THanks in Advance
By Queen (Apr, 2022) | Reply

I have worked 16 years my gratuity is calculated based on 30 day for 16 yeats ?
By Ummer Pulicharam Mohamed (Mar, 2022) | Reply

Can I get my plane ticket and my gratuity? I'm finish my contract after 4 months my company they told me I can't get my plane tickets if I'm go back in my country.... Thank u so much
By Alelie Lumio (Jun, 2021) | Reply

I worked for 18 months so what will be my gratuity??
By Veena k vinod (Apr, 2021) | Reply

I want my calculations of gratuity for two years and six months in service
By Richard Mugume (Jan, 2021) | Reply

I have worked for 12 years. My gratuity is calculated based on 30days salary for 12 years or for the first 5 years - 21days and the next 7 years 30days?
By Ashiana (Dec, 2020) | Reply

kindly clarifty 12 years for 30 days or 5 year - 21 days & 7 years - 30 days ...please advise about the law of uae for gratuity pay
By NAVEENKUMAR (Feb, 2021) | Reply

I have been working in my company for 2.5 years my first contract is unlimited and they renew my contract under limited , how to calculate my gratuity if i resign after 2 months .
By emilda (Nov, 2020) | Reply

Can i ask if how to compute my gratuity this nov my contract finish 3yrs my salary 2400drham i don't how much my basic salary can i know if how much my basic salary thanks
By Elvira q natividad (Sep, 2020) | Reply

I have a question. Due to covid 19 we are trying to re structure some of our employees wages and reducing the salaries by some percentages. In the event an employee is leaving us or terminated on what basic salary will their end term gratuity be calculated. For eg if the employee started his job at AED 10000 and finished 4 years of service. From this year if the salary becomes AED 7000 and he or she works for another one year. When they leave how will their gratuity be calculated for these 5 years in total? Please help. regards bala
By balasubramanian (Sep, 2020) | Reply

i am finish 2 years contract as ofw how i can get end of service benefits?how to compute my gratuity if finish my 2 years in service?and do i get a free 1 month salary also?
By JOann (Jun, 2020) | Reply

Hi, I have been made redundant by my company after 2.5years with them due to Covid19. The gratuity is not mentioned in my work contract. Can I get a gratuity from my company and if yes how?
By Jean-Luc Ritelle (May, 2020) | Reply

How to compute my gratuity if finished my 6 yrs in service?and do I get a free 1 month salary also?
By Berliza dungca (Mar, 2020) | Reply

Im resign in my company im 10 yrs with them and my contract 3yrs how much i get graduity to them and my basic is 900
By Michella guevarra (Mar, 2020) | Reply

good day... just asking about my gratuity calculation ive finished 4 contract in my company or 8 years in service how many days i get per year for my gratuity.. tnx.. for response......
By paul (Sep, 2019) | Reply

Hi.This Mohammed Hussain. Sir I would like to make a question that I m working as a salesman in a showroom more than 10 years. So will I get gratuity from my company if I resign from my post?.
By Mohammed Hossain (Sep, 2019) | Reply

If the employee is under variable (no fixed salary) - is he entitled to gratuity? No salary paid to him since Feb 2019, he started with us in Aug 2017
By Hazel (Sep, 2019) | Reply

i have salary of 8,500 aed but my basic salary is 2,189 aed only and i was working with my company for more than 15 years. how much do i get if i end my service. thank you in advance.
By jalil (Aug, 2019) | Reply

Dear sir, I am uday raj. I worked in uae 7 years. So how much money (gratuaty) will receive when I resign in my company . Basic salary is 1600 dirhams.
By Uday Raj (Aug, 2019) | Reply

How can I calculate my.gratuity..which one the present salary or the old salary when they offer..before my salary is 1500..but now its 1700..so.I was confusing which can.I calculate?
By Ma victoria manabat (Aug, 2019) | Reply

Just I want to understand this scenario. How we will calculate this gratuity. Basic Salary :16877 Total Years Service : 5 Years & 10 Months Just tell me what will be gratuity
By Muhammad Farhan (Aug, 2019) | Reply

I just finished my two years of unlimited contract am my free to go?and will I receive my benefits,?
By Daniel Kwenta (Aug, 2019) | Reply

Last two years i work one of company how much i can get gratuity i got terminated
By B..S. M. FERNANDO (Jul, 2019) | Reply

I will ask what is the computation of resignation fee? I did not use my annual leave its is add to my settlement fee the annual leave pay.
By vicky (Jul, 2019) | Reply

Sir I resigned my job 17June 2019. In my joining date 23 August 2015 . So how much my gratuity paid in my company . I confused . Please clear my doubt. Thank you .
By sivabalan murugan (Jul, 2019) | Reply

our company was trying to terminate my unlimited contract how much gratuity can i received for 2years and 5 month for my basic salary of 2000dirhams
By Jefferson Sanchez (Jul, 2019) | Reply

I have rendered 5 years in a FZ and basic salary is 3,ooo. how will be the computation of my gratuity?
By Michelle (Jun, 2019) | Reply

I read gratuity calculations.thank you.allah
By raj (Mar, 2019) | Reply

My brother in law expired in Jan 2018. He came for holidays to india when hegot cardiac arrest. He was an employee in dubai since 4 to 5 years. His wife n kids are eligible to get only health insurance which is only a petty amount. She cant buy even a home and maintain kids.does his job fit for gratuity??any other incomes she can avail from company??pls guide. Allah bless
By Sama (Dec, 2018) | Reply

Yes the gratuity has to be given in case of death. Please ask the family members to contact the company for the same along with the unpaid salary if any.
By Naveen Pradeep (Apr, 2019) | Reply