Home Official eServices UAE Gratuity Calculator 2025: Based on UAE Labor Law

UAE Gratuity Calculator 2025: Based on UAE Labor Law

ByZoha IshfaqUpdated17 May 2025 - 5:04pm

Have you ever wondered how much you’ll receive when your job contract ends in the UAE? Thankfully, with the UAE Gratuity Calculator, you can now calculate your end-of-service benefits with ease, accurately, transparently, and in minutes. In this blog, we’ll guide you through everything you need to know about calculating your gratuity under UAE labor law.

Table of Content

1 UAE Gratuity Calculator
2 What is Gratuity in the UAE?
3 How to Use the UAE Gratuity Calculator
4 Calculate Gratuity in the UAE
5 Calculate the Gratuity of Part-Time Employees
6 Gratuity for UAE Nationals
7 Gratuity for Foreigners in the UAE
8 UAE Gratuity Calculation Formula for Limited Contracts
9 How to Determine the UAE Gratuity for an Infinite Contract
10 Gratuity Calculation Examples in the UAE
11 Qualifications for Gratuity in the United Arab Emirates
12 Questions & Answers

UAE Gratuity Calculator

Use the most recent labor law revisions to effortlessly calculate your UAE gratuity online. To swiftly and precisely calculate your end-of-service rewards, use our online gratuity calculator:

What is Gratuity in the UAE?

End of service gratuity (EOS) in the UAE is a mandatory amount that employers are required to pay to their employees upon termination of their employment. This amount is calculated based on the employee’s length of service and their last basic salary.

How to Use the UAE Gratuity Calculator

Here’s how to use the UAE gratuity calculator to determine your gratuity:

Get the calculator open.
Enter the day of work resumed by the work contract under “First Working Day.”

Enter the day when work ended, as stated in the resignation paperwork, under “Last Working Day.”
The “Calculate” button should be clicked.

Based on your input, your gratuity will be shown to you.

Calculate Gratuity in the UAE

Here’s how to calculate gratuity in the UAE:

Determine daily wage: Divide the monthly basic salary by 30. For example, if the basic salary is AED 12,000:
- Daily wage = AED 12,000 ÷ 30 = AED 500
Calculate gratuity for the first 1 to 5 years: For the first 1 to 5 years, calculate gratuity per year by multiplying the daily wage by 21. That is:
- Gratuity = (Daily wage × 21) × Number of years.
Calculate gratuity for service beyond 5 years: Multiply the daily wage by 30 for each additional year of service. That is:
- Gratuity = (Daily wage × 30) × Number of additional years.
Calculate total gratuity: Gratuity for first 5 years + Gratuity for additional years = Total gratuity.

Calculate the Gratuity of Part-Time Employees

Here’s how to calculate the gratuity of a part-time employee in the UAE:

Calculate the Work Ratio: (Actual hours ÷ Full-time hours) × 100 = Work ratio. For example, if a part-time employee works 18 hours per week, and a full-time schedule is 36 hours per week:
- Work ratio = (18 ÷ 36) × 100 = 50%.
- Calculate gratuity for the first 1 to 5 years: For the first 1 to 5 years, calculate gratuity per year by multiplying the daily wage by 21. That is:
  - Gratuity = (Daily wage × 21) × Number of years.
- Calculate gratuity for service beyond 5 years: Multiply the daily wage by 30 for each additional year of service. That is:
  - Gratuity = (Daily wage × 30) × Number of additional years.
- Calculate full-time total gratuity: Gratuity for first 5 years + Gratuity for additional years = Total full-time gratuity.
- Calculate part-time gratuity: Full-time gratuity × (work ratio ÷ 100). For example, if the full-time gratuity is AED 50,000 and the work ratio is 50, then part part-time gratuity:
  - 50,000 × (50 ÷ 100) = 25,000. In this case, the gratuity for part-time employees is AED 25,000.

Gratuity for UAE Nationals

Termination of Service: A gratuity is a benefit that an employer gives to a worker. This reward is determined in the United Arab Emirates once an employee has worked for the company for at least a year. The employee’s position inside the organization is one factor that needs to be considered in this respect. For instance, benefits provided to a UAE national in the private sector will be governed by the country’s social security and pension regulations.

Gratuity for Foreigners in the UAE

When a foreign employee’s employment comes to an end, the employer is required to give them a gratuity. This gratuity is given all at once. The guidelines for giving foreign workers an end-of-service gratuity are as follows:

For the first five years of the employment relationship, twenty-one days’ compensation every year.
30 days’ pay for every year following the preceding one.
If a foreign employee has worked continuously for at least a year, they are eligible to calculate this proportional gratuity as a fraction.
Using the Dubai End of Service Gratuity Calculator, unpaid absence days are not taken into account when calculating the length of service.

UAE Gratuity Calculation Formula for Limited Contracts

The following formula is used in the United Arab Emirates to determine the end-of-service gratuity payout for limited contract employees:

Last basic salary × 21 days × Number of years of service.

For instance, the bonus amount would be as follows if an employee worked for two years and their most recent base pay was AED 3,000:

AED 3,000 × 21 days × 2 years = AED 126,000

How to Determine the UAE Gratuity for an Infinite Contract

In the UAE, end-of-service gratuities for workers with unlimited contracts are determined as follows:

Determine the employee’s base pay.
Determine how many years the person has worked for the company.
To determine the end-of-service gratuity amount, multiply the number of years of service by 21 days of basic salary.
Multiply the number of years of service by one month’s basic pay to determine the gratuity.
The employee’s total gratuity is determined by adding the two sums.

Gratuity Calculation Examples in the UAE

A worker with a basic salary of AED 3,000 and 4 years of service will get:

(21 × 3,000 × 4) ÷ 30 = AED 8400

Person with AED 5,000 basic salary and 11 years of service:

(30 × 5,000 × 11) ÷ 30 = AED 55,000

Qualifications for Gratuity in the United Arab Emirates

In the UAE, the following circumstances and elements establish one’s eligibility for a gratuity:

Gratuities are only given to workers who have worked for the same company continuously for at least a year.
Gratuities are not given to employees who have worked for less than a year.
Gratuity provisions apply to full-time foreign workers in the private sector.
Because they are covered by the national pension program, UAE citizens are not entitled for gratuities.
Workers who are fired for serious misconduct might not be eligible for gratuities.
After a year of service, employees who quit or are fired (not for misconduct) are eligible for a gratuity.
The entire amount of the gratuity shouldn’t be more than two years’ basic pay.
Your most recent drawn basic salary, which does not include commissions, housing allowances, or transportation, is used to compute gratuity.

Conclusion

Whether you’re planning your next move, negotiating a new role, or just curious, knowing your gratuity helps you take charge of your finances. The UAE Gratuity Calculator makes it incredibly easy to stay informed and empowered. It’s not just a number—it’s your well-earned reward for years of dedication.