Using the UAE gratuity calculator will help you find out exactly how much you are entitled to when leaving your job

Whether you are thinking about changing jobs or just want to be prepared, knowing how it works means there are no surprises later, and the UAE gratuity calculator can help you work it out in minutes.

What is gratuity pay

Gratuity is money that your employer must pay you when you leave your job, as long as you have completed at least one year of service and meet the conditions set out under UAE Labour Law. It is a way of rewarding your years of service.

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How to calculate gratuity

The easiest way is by using the Dubai Development Authority’s gratuity calculator. You only need three details – the first day you joined your company, your final working day, and your basic salary.

It is important to note that your basic salary is different from your full salary. It does not include allowances like housing, transport or commission.

In 2023, the Ministry of Human Resources and Emiratisation confirmed that unpaid leave days will not be included in the calculation of gratuity.

Access the gratuity calculator here. 

How much you will get

Your gratuity is based on your basic salary and the number of years you worked.

  • For the first five years, you will get up to 21 days of basic salary for each year.
  • If you worked more than five years, you will get 30 days of basic salary for each extra year.
  • The total amount cannot be more than two years of wages.

Important note: If you worked less than one year, you are not entitled to any gratuity.

Limited or unlimited contract

There are two types of contracts in the UAE, and your gratuity is calculated differently depending on which you have.

  • A limited contract has a clear start and end date, often linked to a project or fixed period. It automatically ends when the contract expires unless it is renewed.
  • An unlimited contract does not have an end date. It continues until either the employee or employer decides to end it.

What happens if you are terminated

  • If you are terminated and have worked for more than one year but less than five years, you are entitled to 21 calendar days of basic salary for each year.
  • If you have worked for more than five years, you are entitled to 30 calendar days of basic salary for each extra year. The total still cannot go above two years of wages.
  • Unpaid leave days will be deducted from the calculation.

What happens if you resign

If you resign before completing one year, you will not get any gratuity.

  • If you worked between one and three years, you will get one third of 21 days’ basic salary for each year.
  • If you worked between three and five years, you will get two-thirds of 21 days’ basic salary for each year.
  • If you worked for more than five years, you will get the full 21 days’ basic salary for each year.

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