Free & Online Gratuity Calculator UAE 2026 (MOHRE Updated)
Calculate your gratuity with this tool in UAE!
Calculating your gratuity...
Your Gratuity Calculation Results
Calculation Breakdown
If you’re leaving a job in the UAE, gratuity is probably one line in your final settlement you can’t verify on your own. Most employees don’t know their exact entitlement until HR hands them a number, and by then there’s little room to question it.
What is Gratuity in UAE Salary?
Gratuity, مكافأة in Arabic, is the payment your employer owes you when your service ends. It’s calculated on your basic salary only, not your total monthly pay, and that distinction alone causes most of the errors we see.
If your basic salary is AED 5,000 but your full package with allowances comes to AED 8,000, your gratuity is based on the AED 5,000. Someone entering AED 8,000 instead can throw off the entire result.
We’ve seen the same mistakes come up again and again. Wrong salary field, wrong contract type, or a few unpaid leave days that never get accounted for. On an employee with AED 8,000 basic salary and 6 years of service, a mistake in the contract type or service years can shift the final number by thousands of dirhams.
This calculator applies the current MOHRE formulas exactly as written in the UAE Labour Law, the same rules HR departments are supposed to use. Treat the result as a strong estimate. Confirm it against your settlement letter or check directly with MOHRE if anything looks off.
How to use Gratuity Calculator UAE?
Doing this math by hand is where most errors creep in, especially converting your annual salary into a daily wage. The calculator below runs the same MOHRE formula HR departments use, and it takes seconds.
It works the same way for limited and unlimited contracts, so you don’t need to work out which formula applies before you start.
Steps to Use the Calculator
Avoid These Mistakes while Using UAE Gratuity Calculator
We’ve reviewed enough of these calculations to know where people go wrong.
Common mistakes to avoid:
- Entering total salary instead of basic salary. This changes the result the most.
- Using the wrong joining date. Even a one-month gap shifts your service years.
- Picking the wrong contract type. Limited and unlimited contracts follow different rules.
- Copying examples from other websites. Formulas get updated, always check against current UAE Labour Law guidance.
Professional tip: Pull your basic salary and joining date straight from your signed contract, not from memory. A wrong figure here is the single biggest reason calculator results don’t match final settlements.
UAE Gratuity Calculation Formula
The formula depends on two things: your basic salary and how many years you worked. Everything else feeds into those two numbers.
The standard MOHRE formula works like this:
- First 5 years of service: 21 days of basic salary for each year
- After 5 years: 30 days of basic salary for each year
- Maximum gratuity payable is 2 years of total salary, regardless of how long you worked
Formula for Unlimited Contracts
Unlimited contracts use the same 21/30-day structure above, but resignation timing changes the payout.
- Less than 1 year of service: no gratuity
- 1 to 3 years, resigned: gratuity reduced to 1/3
- 3 to 5 years, resigned: gratuity reduced to 2/3
- 5+ years, resigned: full gratuity, no reduction
- Terminated by employer at any point after 1 year: full gratuity, no reduction
Formula for Limited Contracts
Limited contracts use the same 21/30-day structure, but resignation before the contract ends works differently.
- Completed the full contract term: full gratuity
- Resigned before the contract ended: full gratuity still applies under current Labour Law, unlike the old resignation penalties that applied to unlimited contracts
Worked Examples
Example 1: 3 years of service
Basic salary AED 6,000, unlimited contract, resigned after 3 years.
21 days of basic salary comes to AED 4,200 per year of service. Over 3 years that’s AED 12,600, but resignation between 1 and 3 years cuts this to 1/3, so the final payout is AED 4,200.
Example 2: 6 years of service
Basic salary AED 8,000, unlimited contract, terminated by employer after 6 years.
The first 5 years pay 21 days each: AED 5,600 per year, totaling AED 28,000. The 6th year pays 30 days: AED 8,000. Total gratuity comes to AED 36,000, no reduction applies since this was a termination, not a resignation.
Professional tip: If your contract type or resignation date is unclear, run the calculator with both scenarios. The AED difference between a “termination” and “resignation” classification is often the single biggest swing in your final number.
Who can Use this Online Gratuity tool?
This calculator is built for private sector employees anywhere in the UAE. The formula stays the same whether you’re in Dubai, Abu Dhabi, Sharjah, or any other emirate, so your location doesn’t change how you use it.
Who can use it
Eligibility Criteria
Not everyone qualifies for gratuity, and eligibility depends on a few specific conditions rather than just having a job in the UAE.
- You must have completed at least 1 year of continuous service. Anything less pays nothing, regardless of contract type.
- You must be a private sector employee. Government and free zone authority staff follow separate pension or end-of-service schemes.
- UAE citizens working in the private sector are typically covered under the GPSSA pension scheme instead of standard gratuity, so this calculator applies mainly to expatriate employees.
- Your service must not have ended through Article 120 misconduct, which can reduce or cancel your gratuity entirely.
If you meet these conditions and fall under a standard MOHRE employment category, this tool applies to you.
Benefits of Using UAE Gratuity Calculator
- Get a clear estimate of your EOSB in seconds instead of working through the formula by hand
- See the full breakdown, not just a final number, so you know exactly how each year of service was calculated
- Compare what resignation and termination would each pay out before you decide anything
- Check your HR department’s figure against an independent calculation before you sign your final settlement
- Test different scenarios, like an earlier resignation date versus staying until contract completion, to see how the payout changes
UAE Labour Law Rules Behind This Calculator
This calculator follows the UAE Labour Law directly, not a simplified version of it. Each article below governs a specific part of your gratuity, and most calculators skip explaining which rule applies where.
Key articles and what they actually control
If your case involves misconduct, an early resignation, or unpaid leave that shifted your service years, one of these articles is almost always the reason your number looks different from a standard calculation. When in doubt, cross-check the specific article against your situation rather than relying on the general formula alone.
Gratuity for Domestic Workers in UAE
Domestic workers, drivers, maids, nannies, and similar household staff, are covered under Federal Decree Law No. 9 of 2022, a separate law from the standard Labour Law that applies to private sector employees.
The core formula is simpler than the standard one. Domestic workers earn 14 days of basic salary for each year of service, with no tiered increase after 5 years like standard employees get.
Example: A domestic worker on AED 2,500 basic salary who completes 3 years of service earns roughly AED 1167 per year under the 14-day formula, totaling around AED 3500 for the full period.
Gratuity applies only after completing at least 1 full year of service, same as the standard rule. Termination for serious misconduct, similar to Article 120 grounds under the main Labour Law, can still reduce or cancel the payout.
Professional tip: If you’re a domestic worker unsure which law applies to your contract, check whether your employer is a private household or a company. Company-employed household staff sometimes fall under the standard Labour Law instead, which changes the formula entirely.
Gratuity vs Tip: Why They Are Not The Same
These two get mixed up constantly, especially by employees coming from hospitality or service roles where tipping is common in other countries.
A tip is money a customer gives voluntarily, on top of a bill, based on service quality. It has nothing to do with your employment contract and your employer has no legal obligation tied to it.
Gratuity is different. It’s a legally mandated end-of-service payment your employer owes you under the UAE Labour Law, calculated from your basic salary and years worked, regardless of how customers felt about your service.
The practical difference:
- A tip is optional, gratuity is a legal entitlement
- Tips are paid immediately by customers, gratuity is paid by your employer when you leave
- Tips have no formula, gratuity is calculated using a fixed 21/30-day structure
- Not receiving tips has no legal consequence, not paying gratuity is a violation your employer can be held accountable for
If you’re in hospitality and unsure whether a payment you received counts toward your gratuity, it almost certainly does not. Service charges and tips sit outside the gratuity calculation entirely.
Maximum Limit on Gratuity in UAE
There’s a ceiling on gratuity no matter how long someone works. The total payout cannot exceed 2 years of the employee’s total salary, regardless of service length.
This cap matters most for long-tenured employees, typically those who have worked 15 to 20 years or more with the same employer. Without it, the 30-day-per-year rate after 5 years of service would keep compounding indefinitely.
Example: An employee on AED 10,000 basic salary who worked 25 years would calculate to well over 2 years of total salary using the standard formula. The payout is capped at 2 years of total salary instead, which in this case is AED 240,000.
If your calculated result comes close to or exceeds this cap, the calculator will apply the limit automatically. Most employees never reach this ceiling since it typically only affects long-service cases with higher basic salaries.
Situations Where Gratuity Can Be Denied in UAE
Gratuity is a legal right, but it isn’t unconditional. A handful of specific situations under the Labour Law can reduce it or cancel it entirely.
Gratuity can be denied or reduced when:
- The employee is dismissed for misconduct under Article 120, such as forgery, theft, or serious breach of confidentiality
- The employee resigns during the probation period, before completing 1 year of continuous service
- The employee abandons the job without notice and without a valid legal reason under Article 121
- The employee causes serious financial loss to the employer through proven negligence
What does not affect gratuity:
- Poor performance reviews alone, without a documented misconduct case
- Personal disputes with a manager that don’t involve a legal violation
- Taking approved annual leave before resigning
If your employer denies gratuity, the specific Article 120 or 121 ground they’re citing should be documented in writing. Vague reasons like “unsatisfactory conduct” without a specific incident are not sufficient grounds for denial under the law.
Full and Final Settlement Calculator UAE
Gratuity is only one part of your final settlement. The full amount also includes unused annual leave, any unpaid salary, and pending overtime, all owed alongside your gratuity when you leave.
This calculator focuses specifically on the gratuity portion, since that’s the part most employees calculate wrong. For a complete breakdown of your entire final settlement, including leave balance and salary dues, use our dedicated Full and Final Settlement Calculator.
Simple Tips To Protect Your Gratuity Rights
A few habits make the difference between a smooth settlement and a dispute over numbers.
Before you resign or accept termination:
- Keep a copy of your signed contract accessible. HR calculations should match what’s actually written in it, not a verbal agreement.
- Note your exact joining date from the contract, not from memory. This single detail affects every year of your calculation.
- Run your own calculation before your final meeting with HR. Walking in with a number gives you something concrete to compare against theirs.
If your settlement looks wrong:
- Ask HR for a written breakdown showing basic salary, service years, and the formula applied. A verbal explanation isn’t enough to verify anything.
- Check whether any deduction was applied and whether it falls under Article 135’s allowed list, such as an outstanding loan or proven damages.
- If the numbers still don’t add up after checking, contact MOHRE directly or consult an employment lawyer. Cases involving Article 120 misconduct claims or disputed contract types often need legal review, since the difference between a fair deduction and an unlawful denial isn’t always obvious from the settlement letter alone.
Contact MOHRE or a labour lawyer if: your employer refuses to pay, payment is delayed more than 14 days past your last working day, or your case involves an Article 120 misconduct dispute. File a complaint through the MOHRE app, call center, or a Tasheel center with your contract, payslips, and work history ready.
Final Summary
Gratuity in the UAE comes down to two numbers: your basic salary and your completed years of service. Everything else, contract type, resignation timing, misconduct clauses, only adjusts how those two numbers get applied.
This calculator runs the current MOHRE formula so you can check your entitlement before HR gives you a final figure, not after. Use it, but treat the result as a strong estimate rather than a legal guarantee.
If your case involves a contract dispute, a denied gratuity claim, or numbers that don’t match what you calculated, that’s when it’s worth confirming directly with MOHRE or an employment lawyer rather than relying on any calculator, including this one.