UAE Gratuity Calculator 2026
Calculate your End of Service Benefits (EOSB) according to the latest UAE Labour Law (Decree Law No. 33 of 2021).
Last updated: May 2026
Basic salary only (excluding allowances like HRA/Transport)
Since 2022, UAE law mostly standardized calculation for resignation & termination.
Estimated Gratuity
What is UAE Gratuity (End of Service)?
In the United Arab Emirates, Gratuity (also known as End of Service Benefit) is a statutory payout given to employees who complete more than one year of service with their employer. It is a form of deferred compensation to thank employees for their service and provide a financial cushion.
The calculation is based strictly on your basic salary, excluding any allowances like housing, transportation, or utilities. As of February 2022, all employees in the UAE private sector must transition to fixed-term (limited) contracts, which has simplified the gratuity logic.
How to use this calculator
- 1Enter Basic Salary — Input your monthly basic salary amount as mentioned in your contract (excluding allowances).
- 2Input Service Period — Provide the total years, months, and days you have worked with the company.
- 3Select Reason — Choose whether you resigned or were terminated (though the calculation is now similar for both).
- 4Review Result — The calculator will instantly show your total estimated gratuity payout in AED.
Formula & example
Gratuity = (Basic Salary / 30) × (Days per Year) × (Years of Service)
Example: 6 years of service with a basic salary of AED 10,000.
- First 5 years: (10,000 / 30) × 21 × 5 = AED 35,000
- 6th year: (10,000 / 30) × 30 × 1 = AED 10,000
- Total Gratuity: AED 45,000
Benefits
Statutory Compliance
Ensure your employer's offer matches the UAE Labour Law requirements.
Exit Planning
Know exactly how much cash you will receive when leaving a job for better financial planning.
Loan Eligibility
Banks often consider your accrued gratuity as a factor for personal loan eligibility.
Use cases
Resigning for a new job
Calculate your budget before moving to a new company in the UAE.
Redundancy / Termination
Verify that your final settlement is accurate and fair.
Company Mergers
Understand if your service history is preserved during corporate changes.
Frequently asked questions
Am I eligible if I have worked for less than a year?+
No. Under UAE law, you must complete at least 365 days of continuous service to be eligible for gratuity.
Is gratuity calculated on total salary?+
No, it is calculated only on the basic salary. Allowances like housing, transport, and utilities are not included.
What if I am fired for gross misconduct?+
Under the new law, employees may still be entitled to their gratuity even in cases of termination for cause, though legal advice is recommended for specific 'Article 44' cases.