UAE gratuity calculator

How UAE gratuity is calculated

End-of-service gratuity is based on your basic salary, not your total package. After one year of continuous service you earn 21 days of basic wage for each of the first five years, then 30 days for every year after that, with part years counted proportionally. The total is capped at two years of basic wage.

Who qualifies

Gratuity is due once you have completed 12 months of continuous service. Below that the entitlement is zero, which is why the calculator returns AED 0.00 for a shorter period. Paid annual leave counts as service. A long stretch of unpaid leave can interrupt continuity, and the final decision on that rests with your employer or MOHRE.

Worked example

Take a basic salary of AED 8,000 and four years of service. The daily basic wage is 8,000 ÷ 30 = AED 266.67. Four years at 21 days each gives 84 days, so the gratuity is 84 × 266.67 = AED 22,400.

The same salary after seven years: five years at 21 days (105 days) plus two years at 30 days (60 days) equals 165 days, or AED 44,000. The two-year cap for AED 8,000 is AED 192,000, so it does not apply here.

Basic salary and the two-year cap

The cap is 24 months of basic wage, and you would need roughly twenty-five years of service to reach it on the standard 21-then-30 day rate. For most people the cap never comes into play; it matters for very long careers and for high basic salaries. When the raw figure does exceed the cap, the calculator says so under the result.

Resignation, dismissal and Article 44

Resigning does not reduce gratuity under the 2021 law, so the calculator treats resignation and the end of a fixed contract in the same way. The exception is dismissal for a reason listed in Article 44, such as a serious breach of duty, where the benefit can be forfeited. That case is not modelled here, and it is worth getting advice if you think it applies to you.

What the calculator does not include

Unpaid leave and gaps in service can affect the result, which is why the final figure should come from your HR department. Company-specific end-of-service schemes, if your employer has one, also sit outside this estimate.

Gratuity in rupees

Gratuity is paid in dirhams. If you are moving it to India, what it is worth depends on the rate you convert at, not on the size of the lump sum alone. Check the live AED to INR rate, then compare what each exchange house is paying before you send an amount this large.