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UAE Gratuity Calculator - End of Service Benefits

Gratuity is calculated on basic salary only, never on the gross package. Enter the basic figure from the contract and the exact service dates, and the breakdown below shows how the entitlement is built up year by year.

The maths runs in your browser. Nothing you type is sent to our servers.

The rules applied

  • Basic salary only - housing, transport and other allowances are excluded.
  • No gratuity is due below one year of continuous service.
  • Twenty-one days of basic pay for each of the first five years.
  • Thirty days of basic pay for each year beyond the fifth.
  • Total gratuity is capped at two years of pay.
  • Unpaid leave does not count towards the service period.

This calculator is indicative and is not legal advice. Verify any final figure with MOHRE or the relevant authority before relying on it.

Where these numbers come from automatically

This page asks you to type the numbers in. In a working attendance system they come from the punches: overtime already split by band, service length already net of unpaid leave, and a payroll file ready to export for WPS.

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Frequently asked questions

Is gratuity calculated on basic or total salary?
Basic salary only. Housing, transport and every other allowance are excluded, which is why the gratuity figure is usually far smaller than employees expect from their gross package.
Does resigning reduce the gratuity?
Not under Federal Decree-Law 33 of 2021. The old reductions for resigning before five years applied to the previous law and to unlimited contracts under it. Under the current law the entitlement is the same whether the worker resigns or is terminated, provided the service exceeds one year.
How are part years counted?
Pro rata. Once a full year is complete, each additional day of service earns its proportional share, so leaving at three years and seven months pays for exactly that period rather than rounding down to three years.
Why does accurate attendance data matter here?
Because unpaid leave does not count towards service, and end dates get disputed. A system that holds every punch and every approved absence gives you a service period you can evidence, rather than one reconstructed from a spreadsheet at the moment somebody resigns.
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