UAE Gratuity Calculator 2026

How UAE Gratuity Is Calculated

For private-sector full-time employees, gratuity is generally based on basic salary only, not allowances such as housing, transport, or utilities. Under the current official rule set, a worker who completes at least one year of continuous service becomes eligible for end-of-service gratuity.

• Less than 1 year of service: no standard gratuity entitlement.
• More than 1 year and less than 5 years: 21 days of basic wage for each year of service.
• More than 5 years: 30 days of basic wage for each year after the first five years.
• Partial years are calculated proportionately after the one-year threshold is met.
• Unpaid absence days are excluded from service calculation.
• Total gratuity cannot exceed two years of wage.

What This Calculator Covers

Worked Example

Say an employee has a monthly basic salary of AED 10,000 and completes 6 years of continuous service with no unpaid leave.

• Daily basic wage: AED 10,000 ÷ 30 = AED 333.33.
• First 5 years: 5 × 21 days = 105 days.
• Remaining 1 year: 1 × 30 days = 30 days.
• Total gratuity days: 105 + 30 = 135 days.
• Gratuity amount: 135 × AED 333.33 = AED 45,000.
• Statutory cap check: two years' basic wage is AED 10,000 × 24 = AED 240,000, so the calculated AED 45,000 stays well under the cap and is paid in full.

For a shorter example, an employee on the same AED 10,000 basic salary who leaves after 2.5 years would accrue 2.5 × 21 = 52.5 gratuity days, worth approximately AED 17,500 before any cap or deduction is applied.

Important Notes

• This tool is an estimate, not an official MOHRE service.
• Employers must pay outstanding wages and gratuity within 14 days after contract termination under the standard private-sector rule.
• The voluntary Savings Scheme can replace traditional gratuity for enrolled employees, so always check your employment arrangement.