Salary, Pay Commission & HR

Gratuity Calculator (UAE)

Calculate your end-of-service gratuity under UAE labour law.

UAE labour law entitles employees who complete at least one year of service to end-of-service gratuity, calculated based on basic salary and total years worked. Enter your details to calculate your estimated gratuity.

Enter a valid basic salary.
Enter a valid number of years.

Estimated Gratuity

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Based on standard UAE Labour Law calculation (21/30 days for first 5 years, 30/30 days beyond)

How to Use This Tool

  1. Enter your basic monthly salary (excluding allowances) in AED.
  2. Enter your total years of service.
  3. Click Calculate Gratuity to see your estimated end-of-service gratuity.

How UAE End-of-Service Gratuity Is Calculated

Under UAE Labour Law, employees who complete at least one year of continuous service are entitled to end-of-service gratuity, calculated using only the basic salary (excluding housing, transport, and other allowances):

Daily Wage = Basic Monthly Salary ÷ 30

Why Only Basic Salary Counts

UAE gratuity calculations specifically exclude allowances like housing, transport, and other benefits — only the basic salary component of your compensation is used, which is an important distinction from your total gross monthly pay.

Important Conditions

Frequently Asked Questions

What salary is used for gratuity — basic or gross?

Only your basic salary is used for gratuity calculation, excluding allowances like housing and transport that may be part of your total gross monthly compensation.

What if I have less than 1 year of service?

Under UAE Labour Law, employees with less than one year of continuous service are generally not entitled to any end-of-service gratuity.

Is there a maximum cap on gratuity?

Yes, total gratuity payable is generally capped at two years' worth of salary under UAE labour law, regardless of how many years beyond that the employee has worked.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.