What This Calculator Estimates
End-of-service gratuity in the UAE is a statutory benefit for employees under the UAE Labour Law, calculated based on basic salary and total years of continuous service, with the formula differing depending on whether the employee resigns or is terminated, and often prorated differently for the first five years versus service beyond that. Because eligibility and calculation details can vary by contract type and length of service, this calculator provides a general estimate that you should verify against your specific employment terms.
How to Use This Calculator
- Enter basic monthly salary in AED.
- Enter years of service.
- Adjust the default day assumptions if needed.
- Click Estimate Gratuity.
- Verify official rules before relying on the result.
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Tips for a More Accurate Estimate
- Use your basic salary only, excluding housing and transport allowances, for a more accurate figure.
- Confirm whether your gratuity is being calculated under resignation or termination provisions, as these can differ.
- Keep track of your exact continuous service period, since partial years are typically prorated.
- Check your employment contract for any specific gratuity terms that may apply beyond the statutory minimum.
- For a legally accurate figure, consult your HR department or the UAE Ministry of Human Resources and Emiratisation.
Frequently Asked Questions
Is UAE gratuity based on basic salary or total salary?
Gratuity is calculated based on basic salary only, excluding allowances such as housing, transport, or other benefits.
Does resigning affect the gratuity amount compared to being terminated?
Historically, UAE labour law distinguished between resignation and termination for gratuity calculation purposes, though rules have evolved — check the current Labour Law provisions or a legal advisor for your specific situation.
Is there a minimum service period required for gratuity?
Generally, at least one year of continuous service is required to qualify for any end-of-service gratuity under UAE law.
How is gratuity calculated for service beyond five years?
The formula typically changes for years of service beyond the initial threshold, often calculated at a higher number of days' pay per year — verify the exact current formula with official UAE Labour Law resources.
Are unpaid leave periods counted toward gratuity service?
Extended unpaid leave periods may not count toward continuous service for gratuity purposes, depending on the circumstances — confirm with your HR department or legal counsel.
Last updated: May 11, 2026