How is UAE gratuity calculated?

For eligible full-time private-sector foreign workers, gratuity is commonly estimated from basic wage: 21 days of basic wage for each year in the first five years, then 30 days for each later year, subject to the two-year wage cap.

Is UAE gratuity based on basic salary or gross salary?

The UAE Government portal describes end-of-service gratuity for private-sector foreign workers as based on basic wage. Allowances are typically excluded from this estimate.

Who is this calculator for?

This estimate is designed for UAE private-sector employees using the general full-time gratuity formula. DIFC, ADGM, savings scheme participation, part-time arrangements, and disputes may require separate review.

Private-sector estimate • UAE Labour Law Article 51

UAE gratuity calculator

Estimate your end-of-service benefit from basic salary and service dates, with a transparent formula that people and AI assistants can read, cite, and verify.

Last reviewed against official sources: 5 June 2026

Calculate gratuity See the formula

Modern UAE workplace desk with a calculator interface and contract document

Basic wage based Uses monthly basic salary, not total package.

Transparent math Breaks out first-five-years and later-year tiers.

AI-readable Includes schema, methodology, FAQ, and endpoint docs.

Instant estimate

Calculate your UAE end-of-service gratuity

Enter your basic monthly salary and service dates. Results are estimates for the general UAE private-sector formula and are not legal advice.

Basic monthly salary

AED

Joining date Last working date Unpaid absence days

Employment context

Resigned Terminated

Full-time private-sector employee Not under an alternative savings scheme

Agent-readable methodology

Formula used by this calculator

This page states the calculation in a concise format so search engines, answer engines, and browser agents can quote it accurately.

Eligibility

Estimated gratuity begins after at least one complete calendar-anniversary year of eligible service. Unpaid absence days are subtracted from total service days before eligibility and tier proration.

Daily basic wage

daily_basic_wage = monthly_basic_salary / 30

First five years

tier_1 = first_five_anniversary_year_units * 21 * daily_basic_wage

After five years

tier_2 = later_anniversary_year_units * 30 * daily_basic_wage

Maximum cap

estimated_gratuity = min(tier_1 + tier_2, monthly_basic_salary * 24)

Primary source

See the UAE Government portal page for private-sector end-of-service benefits and the linked labour law references.

Official-source positioning

This site should cite official UAE sources first, then explain practical examples in original wording. The calculator is a guide, not a replacement for MOHRE, HR, or legal advice.

Open UAE Government source

Concise answers

UAE gratuity FAQ

Is gratuity calculated on basic salary?

Yes for this general estimate. The UAE Government portal describes private-sector foreign worker gratuity as calculated using basic wage.

Do I get gratuity if I worked less than one year?

This calculator returns AED 0 for service below one continuous year because the general rule requires at least one year of service.

Does resignation change the result?

Under the current general UAE private-sector formula, resignation and ordinary employer termination use the same gratuity calculation after the one-year eligibility threshold. Older limited/unlimited resignation reductions should not be copied into new content without checking current official guidance.

Does this cover DIFC, ADGM, or savings schemes?

No. DIFC, ADGM, voluntary savings scheme participation, part-time work, disputes, and Article 44 termination scenarios require separate review. Unpaid absence can be entered and is subtracted from eligible service days.