Gratuity Calculator 2023 UAE

The Gratuity Calculator is a tool used to calculate the end-of-service benefit provided to an employee for their services rendered to the company. The amount of gratuity offered is determined by the employee's monthly basic salary and is generally paid upon termination, resignation, or the end of the employment contract. Employees who have worked with the company for over a year are usually eligible for this benefit, an essential part of their overall compensation package. However, the terms and conditions of the organization may allow employees to avail themselves of this benefit before the end of their service.

You Should Receive
Basic Salary
Working Years
Your Gratuity Breakdown Details for : AED 0
Your gratuity payout over a period of time
Year Basic Salary Gratuity Amount
The end-of-service gratuity shall be calculated on 21 days for each year for each employee who completed work with the employer for a period exceeding one year and to complete the fifth year, and thirty days for the following period, provided that the total wage did not exceed 24 months

Eligibility Criteria for Gratuity

  • Employees who have worked continuously for at least one year with the same employer
  • Employees whose employment contract is terminated due to reasons such as resignation, retirement, or termination by the employer
  • Employees who have a valid employment contract with their employer
  • Employees who have not committed any serious misconduct leading to their termination
  • Employees who are not covered by a limited-term contract of less than one year
  • Both UAE nationals and expats are eligible for gratuity

What factors are considered when calculating gratuity?

The calculation of Gratuity in UAE is calculated based on several factors, including:

Basic salary:The gratuity amount is calculated based on an employee's basic salary, which is paid to the employee, excluding any allowances or bonuses.

Length of service:The years and months employees have worked for their employer are considered while calculating Gratuity. The UAE labor law specifies that an employee is entitled to a gratuity of 21 days of basic salary for each year of service for the first five years and 30 days for each additional year

Reason for termination:The reason for termination of employment can also affect the calculation of Gratuity. A termination due to misconduct can result in the employee not being eligible for Gratuity.

How to Use the Gratuity Calculator

Determine your basic salary: Look at your employment contract or pay slip to find your basic salary amount.

Determine your length of service: Determine the number of years and months you have worked for your employer. For example, if you have worked for 3 years and 8 months, your length of service is 3.8 years.

Enter your basic salary and length of service: Enter your basic salary amount and length of service into the calculator.

Calculate your gratuity: Click on the "calculate" button to calculate your gratuity amount.

Check your results: Based on the UAE labor law, the calculator will display the total gratuity amount you are entitled to.

How to calculate gratuity for limited contract in UAE:

Duration of Service: 1 year

If you leave work before one year, according to the law, you are not entitled to any gratuity pay or final settlement

Duration of Service: 1 – 5 years


Basic Salary: AED 5,000

Total Years of Working: 2 years

Formulae: Basic Salary * 12(Number of months in a year)/365(Total Number of days) * 21 * 2 (Work Duration)

Note : The above calculation is just an example; the numbers might differ basis on each company contract signed between the employee and employer

Duration of Service: +5 years

EOSB per year greater than 5 years and above *(Basic Salary)

Key aspects to consider regarding Gratuity:

  • The Gratuity amount is calculated based only on the employee's basic salary.
  • Ensuring that the employer does not manipulate the basic salary by increasing other expenses is important.
  • If an employee is eligible for Gratuity, any money they owe to the company can be compensated using the Gratuity amount.
  • Employees with less than 1 year of experience in the company are not entitled to Gratuity.
  • An employer can disqualify an employee from receiving Gratuity if they fail to perform their primary duties.
  • Employees who cause material damage or loss will not be eligible for Gratuity.


Please note that the Gratuity Calculator provided is solely meant for guidance and has no legal basis. The results generated by this calculator are based on the most commonly occurring employment circumstances under UAE Labor Laws. It is essential to understand that only the gratuity component of final settlements is included in the calculator, and factors such as unused leave salary, notice compensation, air ticket, etc., are not considered. We recommend seeking professional advice for a detailed interpretation and/or dispute regarding gratuity/end-of-service benefit (EOSB). Dr. Job FZ LLC. does not take responsibility for any errors or missions.


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Common Doubts & FAQs

The end of service gratuity shall be calculated on the last due basic wage of the employee.
The end-of-service gratuity shall be calculated on 21 daysfor each year for each employee who completed work with the employer for a period exceeding one year and to complete the fifth year, and thirty days for the following period, provided that the total wage did not exceed 24months.
The earlier law had a different gratuity calculation for limited and unlimited contracts. As per the new labor Law, all contracts are limited and hence gratuity is calculated on 21 days of basic salary for every year of service completed, up to five years. Post completion of five years of service, gratuity is calculated on 30 days for every year thereon.
Any resignation or termination which will take place or took place after the new law came into effect will have the Articles of the new law applied.
Payment of end-of-service gratuity is not optional and under the UAE labour law, all employers are legally required to pay what is owed to a departing employee.