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Last reviewed: April 2026 | MOHRE-compliant

Leaving your UAE job soon? Here’s a quick way to estimate how much gratuity you may receive. The new UAE Labour Law is confusing, Most people have no idea how much they’ll actually get — so we built this calculator to give you a clear answer in seconds. In a few seconds, you can see an estimate of what your end-of-service benefits might look like with our Online Gratuity Calculator UAE. 

Before resigning, changing jobs, or making your next career move, it’s smart to know how much end-of-service benefit you’re entitled to. That’s where we come in to help you with our gratuity calculator UAE. Just enter your basic salary and total years of service to see an instant estimate of your gratuity under the latest UAE Labour Law. No complicated formulas, no confusing calculations — the result is ready in seconds.

What Is the Gratuity Calculator UAE ?

The Gratuity Calculator UAE is a simple online tool that helps you to estimate how much end-of-service benefit you may receive under the latest UAE Labour Law. A lot of employees in the UAE actually know this as ‘indemnity’. So some people search for an indemnity calculator UAE to estimate their benefits. To figure out your gratuity, you need to put some information in the calculator. Here’s exactly how it works:

How it works (Step‑by‑Step):

Use this gratuity amount calculator UAE to see exactly how much you are owed. Check the step-by-step guidance below on how to use it:

Why use it:

• This Gratuity Calculator UAE instantly shows the result under 10 seconds you can actually trust what it says — instead of hoping your Excel sheet is right
• No more guessing or risking errors, just enter your salary and years of service.
• Knowing your gratuity before you submit your resignation puts you in a much better position — both financially and mentally.

Gratuity Formula as per New UAE Labour Law (MOHRE)

The gratuity computation UAE formula is simple for limited or unlimited contracts, as it follows MOHRE rules. Your total gratuity cannot be more than two years’ basic salary. Here’s how the new UAE labour law gratuity calculation works: 

Gratuity = (Basic Salary x Gratuity Days Per Year x No. of Service Years) ÷ 30

Benefits of Using a Gratuity Calculator MOHRE

Use the gratuity calculator UAE (MOHRE) to ensure your calculation is compliant. Get your end-of-service benefit gratuity calculator UAE estimate in seconds. Here are the key benefits: 

• Fast and Stress-Free: Just enter your salary and years of service then get your gratuity estimate in seconds, no formulas and no guesswork.
• Based on UAE Law: Every calculation follows MOHRE’s official rules, so you’re not guessing — you’re getting an estimate based on the law.
• Trusted Tool: HR managers use it to cross-check final settlements. Employees use it the night before they resign. It works for both.

Gratuity Eligibility Criteria in the UAE – MOHRE Rules

In the UAE, expatriate employees (non-UAE nationals) are entitled to an end-of-service gratuity when they finish their job, as explained in Article 51 of the UAE Labour Law and MOHRE rules. While gratuity applies to expatriate employees, UAE citizens benefit from pension schemes. For more details, see the MOHRE official guidelines. That said, not everyone automatically qualifies — here’s what the law requires:

• Employment Contract: The employer and employee must have a valid contract, either limited or unlimited.
• Length of Service: To be eligible for gratuity, you must have worked at least one year with your current employer.
• Resignation Rules: To receive full gratuity, employees should complete the required notice period before resigning. Leaving without notice may affect entitlement under Article 121
• Dismissal for Misconduct: If you are dismissed for a serious violation like fraud or major negligence then your gratuity may be reduced or even completely lost under Article 120.

Key Factors Affecting UAE Gratuity Calculation

Calculating your gratuity is easier once you know the main factors that affect it. Before using the gratuity calculator UAE, it helps to understand what’s included in the calculation.

• Years of service: The more years you’ve worked, the higher your gratuity will be.
• Basic salary: Gratuity is based solely on your basic salary — allowances and bonuses don’t count.
• Contract type: Limited or unlimited contracts may slightly affect the calculations.
• Resignation or termination:  Resignation or termination can affect the gratuity if service is under 5 years. 

What Are End-of-Service Benefits (EOSB)?

End-of-service benefits (EOSB) are the amount that is received by the employee when their employment ends in the UAE. The gratuity amount is based on your last basic salary. For the first five years, you get 21 days’ salary. But after five years, you get 30 days’ salary for each additional year. You can quickly see both daily and total gratuity using our salary Gratuity calculator UAE. 

Understanding your end-of-service benefits in the UAE is important for financial planning, especially if you are planning to switch jobs or return to your home country. Since gratuity is calculated based on your basic salary and length of service, even small differences can impact the final amount. Instead of doing manual calculations, you can use EOSB calculator UAE to quickly check your estimated payout and avoid mistakes.

Key Steps for Calculating End-of-Service Benefits in UAE

Three things decide your gratuity: your basic salary, how long you worked, and whether you resigned or were let go. That’s it. Everything else the calculator handles for you.

Follow these steps and you’ll have a clear picture of what’s coming your way

Check Eligibility for minimum year

Make sure the employee has completed at least one year of continuous service.

Understand Basic Salary

Use the last drawn basic salary (exclude all allowances and bonuses).

For example, Rohit’s salary in the UAE is AED 5,000, which includes transport allowance and house allowance. But his basic salary is AED 3,700, excluding all allowances. The gratuity will be calculated based on AED 3,700 only. Entering the basic salary amount in the basic salary calculator in the UAE will provide you with accurate results. 

Identify Your Contract Type

UAE gratuity depends on your contract type. Select the contract type, whether you had a limited or unlimited contract with your employer in the UAE.

Specify the Reason for Leaving

Did you resign, or did your company let you go? This changes your gratuity — sometimes by thousands of dirhams. Pick the right option or your result won’t be accurate.

Enter Your Service Duration

You have to enter the correct date of joining and the last working day in the gratuity calculator UAE to calculate the gratuity amount. These two entries decide your service year for the gratuity calculator formula.

Why Is Gratuity (مكافأة) Important for Employees?

Gratuity or مكافأة as it’s commonly called in Arabic — is basically the UAE’s way of recognizing your years of hard work before you leave. It provides financial security for employees when they leave a job. It also helps employees to manage their expenses after resignation. Under MOHRE rules, this isn’t a favour from your employer it’s your legal right.

Every extra year you stay adds real money to your gratuity. For some people, it’s AED 5,000. For others — especially those past the 5-year mark — it can be AED 30,000 or more. That’s worth knowing before you hand in your notice.

Calculate Gratuity in UAE Free Zones (DMCC, DIFC, DDA, JAFZA)

If you work in a free zone, your gratuity might be slightly different from the standard UAE Labour Law. Most free zones follow the standard UAE Labour Law, so the calculation is usually similar and easy to estimate. To get an accurate estimate, you can use a freezone gratuity calculator based on your employment type.

However, some free zones like DIFC (Dubai International Financial Centre) takes a different approach and works differently. In DIFC, employers contribute monthly to a savings plan instead of paying gratuity as a lump sum at the end.

Since 2020, instead of the usual end-of-service payment, your employer has added a monthly contribution to your DEWS savings or investment account. Instead of getting a lump-sum payment at the end, you just receive whatever has built up in your DEWS account when you leave.

Gratuity rules for resignation and termination as per the new UAE labour law 

As per Federal Decree-Law No. 33 of 2021, Gratuity calculation is the same for limited and unlimited contracts. You can easily estimate your benefits using a gratuity calculator UAE, though the amount may vary depending on how you leave your job.

Comparison of Resignation vs Termination gratuity calculations

Here is the gratuity calculation in UAE in case of termination, and the gratuity calculation in the UAE in case of resignation for employees under contracts. You can also use our gratuity calculator UAE to quickly estimate your end-of-service benefits.

Types of Employment Contracts in the UAE

Under the updated UAE Labour Law, the gratuity rules UAE that employees follow are the same for both limited and unlimited contracts. In simple terms, it no longer matters whether your contract is limited or unlimited; the gratuity calculation rules are the same. Let’s take a look at what each type of contract means.

Limited Contract

A limited contract is a job agreement that clearly shows when your job starts and when it ends. Most private jobs in the UAE now use this type of contract. The new contract can be renewed with mutual agreement between the employer and the employee. When the contract reaches its end date, it finishes automatically unless it is renewed. The new law says employers must issue fixed-term contracts rather than open-ended ones.

Unlimited Contract

An unlimited contract was the old type of employment agreement used in the UAE before the new updates under the UAE Labour Law. This contract did not have a fixed end date.

It would continue for as long as the employee and employer wanted to work together. 

Renewed Contract

If a limited contract is renewed, it will be treated as part of the original contract under UAE Labour Law Article 38. In other words, the duration of both contracts will be combined to calculate gratuity in the UAE, even though it’s a new contract.

Limited vs Unlimited Contract Gratuity Comparison

Want to know your exact gratuity calculation? Explore the detailed UAE calculation formulas for every limited and unlimited contract as per the UAE labour law.

* Even if you have worked for 20 years, UAE law caps gratuity at two years’ basic salary, so your maximum payout will never exceed that limit

Can Gratuity be Denied?

Yes, your employer can legally refuse to pay gratuity, but only in a few specific cases. Here’s exactly when that can happen:

• Employees who do not work for the company for at least one full year are not going to get any gratuity.
• If an employee does something wrong, like commit fraud or theft or break the trust of the company, they might not get their gratuity, or it could be reduced.
• When an employee does not follow the labour law, and the company has to let them go because of that, the employee’s gratuity will be affected according to the law.

Gratuity in the UAE can only be denied if the employee has not completed one year of service or is dismissed for gross misconduct under the labour law.

What Happens When Employers Don’t Pay Gratuity in the UAE?

If an employer fails to pay gratuity, then they may face serious consequences as per the UAE Labour Law. Gratuity is a right that employees have. It must be paid within 14 days from the employee’s last working day as per Article 53 made by the Ministry of Human Resources and Emiratisation (MOHRE).

How to File a Gratuity Complaint with MOHRE: Step-by-Step 2026

If your employer has not paid your gratuity or final settlement, you can file a complaint with MOHRE (Ministry of Human Resources & Emiratisation) in the UAE. The process is simple and can be done online without visiting any office. Before filing a complaint, make sure you meet all labour card requirements in UAE and have valid documentation. Below are the step-by-step instructions to help you understand exactly how to submit your complaint and what to expect during the process.

The New UAE Savings Scheme: Is Your Gratuity Being Invested?

The UAE has introduced a new savings scheme as an alternative to the traditional end-of-service gratuity system. The old way was simple: your employer kept your gratuity and paid it all at once when you left. The new system changes this as employers now add money to regulated investment funds for you every month.

Is the saving scheme mandatory in the UAE?

No, this new savings scheme is not mandatory in the UAE. All the private companies can choose whether to adopt the gratuity system or the savings scheme model approved by MOHRE. Not sure which system your company is following? Just ask your HR department to confirm which system they are using.

How is the Savings Scheme Different from Traditional Gratuity?

Here is the quick comparison:

Traditional Gratuity vs UAE Savings Scheme

Feature	Traditional Gratuity System	UAE Savings Scheme (Alternative EOSB)
How It Works	The employer pays a lump sum when you leave the job	The employer contributes money regularly into an approved investment fund
When You Get Paid	At the end of the service	Contributions grow during employment and are paid when you leave
Investment Growth	No investment, fixed calculation only	Money may grow through regulated investments
Is It Mandatory?	The default system under UAE Labour Law	Voluntary for employers (optional scheme)
What You Receive	Fixed gratuity based on salary & years	Contributions + possible investment returns
Risk to Employer	The employer must arrange full payment at once	Payments are made gradually during employment

Gratuity for Domestic Workers in the UAE

Domestic workers in the UAE, like maids, nannies, drivers, cooks and gardeners get gratuity. The gratuity calculation for domestic workers is a little different from corporate employees. Federal Decree-Law No. 9 of 2022 entitles domestic workers to gratuity, but the calculation formula is not explicitly stated.

However, in practice, many employers still use a rule of thumb to calculate gratuity for domestic workers. They give 14 days of salary for each year the worker has been with them. This only applies if the worker has been with them for at least one year. That’s where a domestic worker gratuity calculator can help you quickly estimate your benefits.

How to Calculate Final Settlement in the UAE?

Final settlement in the UAE is the amount you receive when you leave your job. It usually includes your unpaid salary, payment for unused annual leave, your gratuity, and any other benefits mentioned in your contract. The company adds all these things together, and then they deduct any money you owe them.

Final Settlement = (Unpaid Salary + Leave Encashment + Gratuity + Other Allowances) – Deductions

Gratuity Calculator for Dubai, Abu Dhabi & All Emirates

No matter which Emirate you work in, calculating your gratuity does not have to be confusing. Whether you are in Dubai, Abu Dhabi, Sharjah, or any other emirate, our online gratuity calculator uae make it easy. See below for a better understanding:

Gratuity Calculator UAE by Emirate

UAE Emirate	Gratuity Calculator UAE Guide
Dubai	Use the gratuity calculator Dubai to quickly see your end-of-service benefits without doing any tricky math.
Abu Dhabi	The gratuity calculator Abu Dhabi helps you calculate exactly how much you will get based on your salary and years of service.
Sharjah	Check your Sharjah gratuity easily with this online gratuity calculator UAE: no formulas, just enter your details.
Ajman	Planning to leave your job in Ajman? Use the gratuity calculator UAE in Ajman to know your legal payout instantly.
Fujairah	Fujairah employees can calculate their gratuity online in seconds using this easy tool.
Ras Al Khaimah	Find out your Ras Al Khaimah gratuity without stress: just input your salary, service years, and contract type.
Umm Al Quwain	Even in Umm Al Quwain, the gratuity calculator UAE works for all employees, making end-of-service planning simple.

UAE Gratuity Maximum Cap Explained

The UAE Labour Law says that the end-of-service gratuity has a limit. This means that the total amount of money an employee can get when they leave a job cannot be more than two years of their basic salary. 

Let’s assume your basic monthly salary is AED 3,500.

Two years’ basic salary = AED 3,500 × 24 months = AED 70,000

So, even if your calculated gratuity amount exceeds this figure, the maximum payable gratuity will still be AED 70,000 as per UAE law.

Gratuity vs. Tip – Understanding the Difference

Many people get confused when they hear the word “tip.” It is easy to mix up ‘tip’ and ‘gratuity’, but in the UAE, they are very different. Gratuity is your legal end-of-service payout, while a tip is just a customer’s appreciation to say “Thank you” for your good service.

Here is the quick comparison between gratuity and tip:

Aspect	Gratuity	Tip
Mandatory?	Yes, as per UAE Labour Law	No, completely optional
Who Pays?	Employer	Customer
When Paid?	Only at the end of service	Anytime during service
Calculation	Based on basic salary and years of service using a legal formula	Decided by the customer
Protected by Law?	Yes	No

Gratuity for Part-Time Workers in UAE 2026: Rules You Need to Know

Part-time employees in the UAE are eligible for end-of-service gratuity if they complete at least 1 year of continuous service. If their service is less than a year, then no gratuity will be paid.

The main difference is calculation: gratuity is pro-rated based on working hours compared to full-time employees. So, part-time workers receive a reduced amount depending on how many hours they worked.

8 Smart Tips to Avoid Losing Gratuity in the UAE

Some employees in the UAE miss out on thousands of dirhams simply because they don’t check their gratuity or serve the correct notice period. Don’t let that happen to you! Here are the few steps to boost your gratuity:

• Know Your Contract Type: Contract type mattered under old UAE labour law, but now gratuity rules are mostly the same for all employees.
• Check Your Eligibility: You must complete at least 1 year of service to claim gratuity, which you can be easily estimate using our gratuity calculator UAE.
• Stay for Key Milestones: If you stay for more than 5 years, your gratuity will increase according to the UAE law.
• Keep Your Salary Structure Clean:  Make sure your pay slip clearly shows your basic salary separate from your allowances. This small detail can have a big impact on your final gratuity amount.
• Serve Your Notice Period: Serve the proper notice period to avoid losing your gratuity. Skipping it without a valid reason can lead to penalty under Article 121.
• Documents required to claim gratuity: Always try to maintain a proper record of work permits, your UAE labour card, every written letter, memo, salary slip, offer letter, contract renewal, appointment letter, and joining report. Having these records can save more time on calculating gratuity and help in legal matters.
• Understand UAE Labour Law Updates: The UAE Labour Law changes regularly. These changes can affect how your gratuity is calculated. Keeping up with MOHRE updates means you always know exactly what you’re entitled to, no surprises and no missed payments.
• Seek Legal Help if Needed: If something still doesn’t seem right or your employer is not cooperating, don’t ignore it. A UAE labour law consultant can check your case and help ensure you don’t miss out on any money you’re owed.

4 Common Mistakes to Avoid

You can lose a lot of money if you make a mistake when calculating your gratuity. You can lose thousands of dirhams. So you need to be careful and avoid these mistakes when you calculate your end-of service benefits in gratuity calculator UAE.

Leaving Before Completing 1 Year of Service

You will only get gratuity if you have worked for 1 year of continuous service. If you leave your job early, then you will not be eligible for gratuity. So always check your joining date and plan to leave the organisation accordingly. 

Not Serving a Proper Notice Period

Some people quit without serving notice because they’re angry or have a new job lined up. We get it. But your employer can legally deduct salary — and in some cases, challenge your gratuity. Serve the notice. It’s worth it.

Confusing Basic Salary with Allowances

Gratuity is calculated on your basic salary. It does not include allowances, bonuses, or benefits. 

Ignoring Updates to UAE Labour Law

It is important to check regular updates from MOHRE, as it occasionally updates labour rules and procedures.