UAE Gratuity Calculator 2026 Free & MOHRE Compliant
Calculate your end-of-service gratuity instantly.
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Calculate My UAE Gratuity
Get your accurate end-of-service benefits in seconds — based on official MOHRE UAE Labour Law formulas.
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Based on UAE Federal Decree-Law No. 33 of 2021
Disclaimer: This calculation is an estimate based on UAE Labour Law (Federal Decree-Law No. 33 of 2021). Final settlement may vary based on your specific contract terms, company policy, and applicable free zone regulations. Consult A&A Associate LLC for legal accuracy.
Our UAE Labour Law specialists are ready to assist you with accurate calculations and legal guidance.
What Is Gratuity in UAE?
End-of-Service Benefits (EOSB) Explained
Who Qualifies?
All expatriate employees in the UAE private sector who complete a minimum of 1 year of continuous service with the same employer are eligible for end-of-service gratuity under UAE Labour Law.
What Is It Based On?
Gratuity is calculated on your basic monthly salary and total years of service. Housing, transport and other allowances are NOT included in the calculation.
Is It Mandatory?
Yes. UAE Labour Law makes gratuity payment mandatory for all eligible employees. Employers are legally required to pay upon end of employment.
Key Facts About UAE Gratuity
Everything you need to know at a glance
How Is Gratuity Calculated in UAE?
MOHRE Formula 2026 — Step-by-Step Guide
UAE gratuity is calculated based on your last drawn basic salary and your total years of service. The calculation follows two different rates depending on your total service duration — giving employees a higher rate for longer periods of service.
Calculate Your Daily Salary
Only basic salary is used — housing, transport & allowances are excluded
Apply Service Rate
Gratuity maximum is capped at 2 years total basic salary regardless of service years
Add Both Components
If service is 5 years or less, only the first component applies
| Service Period | Gratuity Rate | Status |
|---|---|---|
| Less than 1 Year | No Gratuity | Not Eligible |
| 1 to 5 Years | 21 Days per year | Eligible |
| More than 5 Years | 30 Days per year | Full Rate |
| Maximum Cap | 2 Years Total Salary | Legal Limit |
Step-by-step walkthrough using real numbers
👤 Employee Details
📐 Calculation Breakdown
💰 Final Result
Limited vs Unlimited Contract Gratuity in UAE
Your contract type significantly affects your gratuity amount. Understanding the difference between a limited and unlimited contract is essential before calculating your end-of-service benefits in the UAE.
Fixed Term Employment
Key Features
Open-Ended Employment
Key Features
Important Update — Federal Decree-Law No. 33 of 2021
Since Federal Decree-Law No. 33 of 2021 came into effect, limited and unlimited contracts have been unified under a single framework. All new employment contracts in the UAE now follow the updated provisions of this law. Employees on existing contracts may be subject to transitional provisions. Always refer to your specific employment contract and the latest MOHRE guidelines for accurate entitlements.
| Factor | 📋 Limited Contract | 🔓 Unlimited Contract |
|---|---|---|
| Contract Duration | Fixed term | Open-ended |
| Minimum Service | 1 Year | 1 Year |
| Rate — 1 to 5 Years | 21 Days / Year | Depends on exit |
| Rate — After 5 Years | 30 Days / Year | 30 Days / Year |
| Resignation Impact | May forfeit if early exit | Partial (1–5 yrs) / Full (5+ yrs) |
| Termination Impact | Full gratuity payable | Full gratuity payable |
| Maximum Cap | 2 Years basic salary | 2 Years basic salary |
How Reason for Leaving Affects Your UAE Gratuity
The reason you leave your job plays a major role in determining your gratuity entitlement under UAE Labour Law. Whether you resign, are terminated, or complete your contract — each scenario follows different rules and rates.
Employee-initiated exit
Key Points
Employer-initiated exit
Key Points
Natural contract end
Key Points
| Service Period | 🚶 Resignation | 📄 Termination | ✅ Contract End |
|---|---|---|---|
| Less than 1 Year | No Gratuity | No Gratuity | No Gratuity |
| 1 to 3 Years | 1/3 Rate | 21 Days/Yr | Full Rate |
| 3 to 5 Years | 2/3 Rate | 21 Days/Yr | Full Rate |
| Above 5 Years | Full Rate | 30 Days/Yr | Full Rate |
Who Is Eligible for Gratuity in UAE?
2026 Rules — UAE Federal Decree-Law No. 33 of 2021
Not every employee in the UAE automatically qualifies for end-of-service gratuity. Eligibility depends on your employment type, service duration, contract type, and reason for leaving. Review the criteria below to understand your entitlement.
Eligible for Gratuity
Employees who qualify for end-of-service benefits
Not Eligible for Gratuity
Employees who do not qualify under UAE Labour Law
Gratuity Cap — Maximum Payable
UAE Labour Law 2026
UAE Labour Law limits total gratuity to a maximum of 2 years' basic salary — regardless of total years of service completed.
Article 139 — UAE Labour Law
Gratuity may be forfeited if an employee is dismissed for:
How to Use the UAE Gratuity Calculator
Calculate your end-of-service benefits in 4 simple steps
Enter Your Basic Salary
Input your last drawn monthly basic salary in AED. Do not include housing, transport or other allowances.
Select Employment Dates
Choose your employment start date and end date. The calculator automatically computes your total service period in years and months.
Choose Contract & Reason
Select your contract type (Limited or Unlimited) and your reason for leaving — Resignation, Termination or Contract Completion.
Get Instant Results
Click 'Calculate My Gratuity' to instantly see your estimated gratuity amount with a full step-by-step calculation breakdown.
Use our free UAE Gratuity Calculator now — instant results, no registration required, 100% based on MOHRE UAE Labour Law 2026.
Calculator is at the top of this page
Common Gratuity Calculation Mistakes to Avoid in UAE
Many employees receive less than their entitled gratuity due to avoidable calculation errors. Understanding these common mistakes helps you verify your end-of-service benefits accurately under UAE Labour Law 2026.
Using Gross Salary Instead of Basic Salary
Many employees mistakenly enter their total gross salary — which includes housing, transport, food and other allowances — when calculating gratuity. This leads to significantly inflated and incorrect gratuity estimates.
Only your basic monthly salary is used for gratuity calculation. Housing, transport and all other allowances are completely excluded under UAE Federal Decree-Law No. 33 of 2021.
Ignoring Months in Service Period
A common error is counting only complete years of service while ignoring the remaining months. This can result in an understated gratuity amount, especially when months push closer to the next year.
Always include full months of service, not just completed years. Partial years may still qualify for proportional gratuity — calculated as a fraction of the annual entitlement.
Applying Same Formula for Both Contracts
Employees often use the same gratuity formula for both limited and unlimited contracts. This leads to incorrect calculations — particularly in resignation scenarios where different rules apply for each contract type.
Limited and unlimited contracts follow different rules — especially for resignations. Unlimited contract resignations under 5 years receive only partial gratuity (1/3 or 2/3), while limited contract completions receive full entitlement.
Not Knowing the 2-Year Maximum Cap
Some employees with very long service periods expect unlimited gratuity accumulation. Without knowing the legal maximum cap, they may incorrectly calculate their total entitlement.
UAE Labour Law caps total gratuity at 2 years' basic salary regardless of total service years. This maximum applies to all employees in all sectors under Federal Decree-Law No. 33 of 2021.
Missing the 1-Year Minimum Threshold
Some employees assume they are entitled to gratuity after just a few months of service. Claiming gratuity before completing the minimum service period leads to incorrect expectations and potential disputes.
Employees must complete at least 1 continuous year of service with the same employer to qualify for any gratuity payment. Service below 1 year results in zero gratuity entitlement regardless of contract type.
Verify these 5 points before calculating your UAE gratuity
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