UAE gratuity calculator
Estimate end-of-service gratuity for a UAE private-sector employee. Enter basic salary and length of service — the calculator applies the 21-day and 30-day rules and the 2-year cap for you.
Employee details
Basic salary only — exclude housing, transport, and other allowances.
Estimated gratuity
Track staff costs and end-of-service provisions inside your books.
Get startedHow UAE gratuity is calculated
End-of-service gratuity is a lump sum a UAE private-sector employer pays an employee when their employment ends. It is earned only after at least one year of continuous service and is based on basic salary only — housing, transport, and other allowances, along with bonuses and overtime, are excluded.
Daily wage
Basic monthly salary ÷ 30 gives the daily wage used for the calculation.
First 5 years
21 days of basic salary for each year of service in the first five years.
Beyond 5 years
30 days of basic salary for each additional year served after year five.
Worked example
Basic salary AED 10,000, 6 years of service. Daily wage = 10,000 ÷ 30 = AED 333.33. First 5 years: 5 × 21 × 333.33 = AED 35,000. Sixth year: 1 × 30 × 333.33 = AED 10,000. Total = AED 45,000, which is below the 2-year cap (AED 240,000).
The total is capped at 2 years of basic salary. The current UAE labour law no longer distinguishes between limited and unlimited contracts for standard full-time employment, and employers are required to settle the entitlement within 14 days of the contract ending. This tool gives an indicative estimate; specific circumstances can affect the final figure.
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AIMuhaseb keeps your expenses, provisions, and financial statements current, so end-of-service and other staff costs are reflected in your P&L and balance sheet as they accrue.
Gratuity calculator questions
How is UAE gratuity (end-of-service) calculated?
For private-sector employees with at least one year of continuous service, gratuity is based on basic salary only. You earn 21 days of basic salary for each of the first 5 years of service, and 30 days of basic salary for each year beyond 5 years. The daily wage is basic monthly salary divided by 30, and the total gratuity is capped at 2 years of basic salary.
Who is eligible for end-of-service gratuity?
Private-sector employees who have completed at least one year of continuous service are eligible for end-of-service gratuity in the UAE. Service of less than one year does not qualify. The current law no longer distinguishes between limited and unlimited contracts for standard full-time employment.
Is gratuity based on basic salary or total salary?
Gratuity is calculated on basic salary only. Housing, transport, and other allowances, as well as bonuses and overtime, are excluded from the calculation. Enter your basic monthly salary — not your gross package — for an accurate figure.
Is there a cap on gratuity?
Yes. Total end-of-service gratuity is capped at 2 years of basic salary, regardless of how long you have worked. This calculator applies that cap automatically.
When must gratuity be paid?
Employers are required to settle the end-of-service entitlement within 14 days of the end of the contract. This calculator gives an indicative figure based on the standard rules; specific circumstances can affect the final amount.
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