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
Included
- Private-sector full-time gratuity estimate
- Basic salary calculation basis
- Pro-rated partial years after one year of service
- Unpaid leave deduction from total service
Not Included
- DIFC or ADGM employment frameworks
- Domestic worker gratuity rules
- Part-time and alternative work pattern calculations
- Legal disputes, employer deductions, or court outcomes
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.