Gratuity Calculator UAE 2025

Employees throughout Dubai and Abu Dhabi and Sharjah along with other emirates can use the UAE Gratuity Calculator to determine their final service payment benefits. UAE Labour Law 2025 determines your gratuity benefits through our tool which is accessible for limited as well as unlimited contracts.

UAE Gratuity Calculator

Basic Salary (AED)

Contract Type

Limited (Fixed-term)

Unlimited (Open-ended)

Termination Method

Resignation

Termination

Contract End

First Working Day

Last Working Day

Service Duration 0 years

Daily Wage AED 0.00

Gratuity Amount AED 0.00

Quick Features of Our Free Gratuity Calculator

You can obtain exact gratuity computations based on contemporary UAE Labour Laws through this service.

The system enables calculations for both unlimited and limited contracts.

The system now supports the amendments made to the UAE labour law for 2025.

The online calculator needs only two inputs for salary value and duration of employment before it generates the result.

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How to Use the UAE Gratuity Calculator

Step 1: Enter Your Basic Salary

The gratuity computation depends on the basic salary you received before leaving.

Step 2: Select the Contract Type

UAE workers should select their contract type between limited or unlimited duration..

Step 3: Enter Your Service Period

Users must enter their service period by writing down both years and months of employment.

Step 4: Pick Why You Leave Your Job

Pick between resignation or termination as the reason for employer action because the calculational methods would change based on your selection.

The calculator process will automatically display your gratuity payment.

How to Calculate Gratuity in UAE

For Limited Contracts

Less than 1 year: No gratuity.
1 to 5 years: 21 days' salary per year of service.
More than 5 years: 30 days' salary per year after 5 years, plus 21 days per year for the first 5 years.

For Unlimited Contracts

Less than 1 year: No gratuity.
1 to 3 years: 1/3rd of full gratuity.
3 to 5 years: 2/3rd of full gratuity.
More than 5 years: Full gratuity (same as limited contract).

MOHRE Gratuity Calculator & Legal Guidelines

A formal calculator exists on the Ministry of Human Resources & Emiratisation (MOHRE) website. Our tool complies with the calculation standards set by MOHRE for precise results. All employees need to evaluate the newly released UAE Labour Law (2025) to see if there are any regulatory alterations.

Online Gratuity Calculation for All Emirates

Our gratuity calculator works for:

Dubai: Dubai Labour Law Gratuity Calculator
Abu Dhabi: Abu Dhabi Gratuity Calculation
Sharjah: Sharjah End-of-Service Benefits Calculator
Other Emirates: Ras Al Khaimah, Fujairah, Ajman, Umm Al Quwain

Formula for Gratuity Calculation in UAE

Gratuity Amount = (Basic Salary ÷ 30) × (21 or 30) × No. of Years Worked

For part of a year, gratuity is calculated proportionally.

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Examples of Gratuity Calculations in UAE

Employee with 3 Years of Service on a Limited Contract

Basic Salary: AED 10,000
Gratuity Calculation:
(10,000 ÷ 30) × 21 × 3 = AED 21,000

Employee with 6 Years of Service on an Unlimited Contract

Basic Salary: AED 8,000
Gratuity Calculation:
- (8,000 ÷ 30) × 21 × 5 + (8,000 ÷ 30) × 30 × 1 = AED 40,000

UAE Gratuity Calculation for Limited and Unlimited Contracts

For Limited Term

Staff who complete their designated work period will get their gratuity payments determined using regular calculation methods.

For Unlimited Term

Under unlimited contracts, the calculation method for gratuity benefits applies to employees who leave before completing five years of service since it offers some benefits.

Don't forget to check out our UAE VAT Calculator for quick and accurate tax calculations!

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Frequently Asked Questions

1. How to Calculate Gratuity in UAE for 2 Years?

After completing two years of a limited contract employment, the employee receives a gratuity payment equivalent to 21 days' salary per year served. When an unlimited contract ends, gratuity must be paid as a fraction of the full amount equal to one-third.

2. Is There Any Difference in the Calculation of Gratuity Between Basic Salary or Gross Salary?

The calculation of gratuity stops at basic salary because allowances remain excluded from the computation.

3. How to Calculate Gratuity for Termination in UAE?

The amount of gratuity becomes complete and depends on the duration of service and employment contract status when an employee receives a termination notice.

4. How to Calculate Gratuity for Domestic Workers.

The calculation of domestic employee gratuity happens according to the Domestic Labour Law rules.

5. What Length of Employment at Minimum Does an Employee in UAE Need Before Receiving Gratuity Benefits?

A company must have an employee serve for at least one year without interruptions before earning gratuity.

6. How to Calculate Gratuity in Dubai?

The calculation combines Basic Salary divided by 30 and multiplies this amount by Days Per Year before applying the Years of Service value.

7. How to Calculate Gratuity for an Unlimited Contract in UAE?

The calculation of gratuity depends on the amount of time worked.
i. 1-3 years: 1/3 of total gratuity.
ii. 3-5 years: 2/3 of total gratuity.
iii. 5+ years: Full gratuity.