Online Gratuity Calculator UAE 2026 (MOHRE Updated)

Last updated: April 2026

Leaving your UAE job soon? Curious about how much gratuity you might receive? The new UAE Labour Law has many details, but our calculator makes it easy to understand your end-of-service benefits. In a few seconds, you can see an estimate of what your end-of-service benefits might look like with our Online Gratuity Calculator UAE. 

Before resigning, changing jobs, or making your next career move, it’s smart to know how much end-of-service benefit you’re entitled to. That is where our Gratuity Calculator UAE is here to help you. Just enter your basic salary and total years of service to see an instant estimate of your gratuity under the latest UAE Labour Law. No complicated formulas, no confusing calculations — the result is ready in seconds.

What Is the Gratuity Calculator UAE ?

The Gratuity Calculator UAE is a simple online tool that helps you to estimate how much end-of-service benefit you may receive under the latest UAE Labour Law. Most of the employees in the UAE often call gratuity as indemnity. So some people search for an indemnity calculator UAE to estimate their benefits. To figure out your gratuity, you need to put some information in the calculator. Here is how the calculator works, one step at a time:

How it works (Step‑by‑Step):

Use this gratuity amount calculator UAE to see exactly how much you are owed. Check the step-by-step guidance below on how to use it:

Why use it:

• This Gratuity Calculator UAE instantly shows how much gratuity you will receive without worrying about complicated formulas
• No more guessing or risking errors, just enter your salary and years of service.
• It’s important to check your gratuity before leaving your job. Understanding your end-of-service benefits gives you an edge in planning your next move.

Gratuity Formula as per New UAE Labour Law (MOHRE)

The gratuity computation UAE formula is simple for limited or unlimited contracts, as it follows MOHRE rules. Your total gratuity cannot be more than two years’ basic salary. Here’s how the new UAE labour law gratuity calculation works: 

Gratuity = (Basic Salary x Gratuity Days Per Year x No. of Service Years) ÷ 30

According to the UAE Labour Law:

Benefits of Using a Gratuity Calculator MOHRE

Use the gratuity calculator UAE (MOHRE) to ensure your calculation is compliant. Get your end-of-service benefit gratuity calculator UAE estimate in seconds. Here are the key benefits: 

Quick and Reliable: This calculator can quickly calculate your gratuity, so you don’t have to worry about small mistakes.

Based on UAE Law: It calculates gratuity as per MOHRE laws, so you can feel confident about the estimate you receive.

Stress-Free: Enter your salary and service years, and get your result in seconds, no complicated formulas or guessing.

Trusted Tool: Used by employees and HR teams alike to make sure calculations are correct and fair.

Gratuity Eligibility Criteria in the UAE – MOHRE Rules

In the UAE, expatriate employees (non-UAE nationals) are entitled to an end-of-service gratuity when they finish their job, as explained in Article 51 of the UAE Labour Law and MOHRE rules. While gratuity applies to expatriate employees, UAE citizens benefit from pension schemes. For more details, see the MOHRE official guidelines. However, the UAE labour law specifies certain conditions that must be met for gratuity eligibility.

• Employment Contract: The employer and employee must have a valid contract, either limited or unlimited.
• Length of Service: To be eligible for gratuity, you must have worked at least one year with your current employer.
• Resignation Rules: To receive full gratuity, employees should complete the required notice period before resigning.
• Dismissal Conditions: Employees should follow UAE Labour Law guidelines, as gratuity eligibility may change in cases of serious misconduct.

Key Factors Affecting UAE Gratuity Calculation

Calculating your gratuity is easier once you know the main factors that affect it. Before using the gratuity calculator UAE, it helps to understand what’s included in the calculation.

Years of service: The more years you’ve worked, the higher your gratuity will be.

Basic salary: Gratuity is based solely on your basic salary — allowances and bonuses don’t count.

Contract type: Limited or unlimited contracts may slightly affect the calculations.

Resignation or termination:  Resignation or termination can affect the gratuity if service is under 5 years. 

What Are End-of-Service Benefits (EOSB)?

End-of-service benefits (EOSB) are the amount that is received by the employee when their employment ends in the UAE. The gratuity amount is based on your last basic salary. For the first five years, you get 21 days’ salary. But after five years, you get 30 days’ salary for each additional year. You can quickly see both daily and total gratuity using our salary Gratuity calculator UAE. 

Key Steps for Calculating End-of-Service Benefits in UAE

It is important for you to understand a few steps for calculating your gratuity. Many people get confused thinking that calculation may be complicated, but it’s just a piece of cake with just a few simple steps. 

First, your basic salary.

Second, how many years have you worked?

And third, whether you resigned or your employer ended the contract

You just need to follow these simple steps, and then you will see how much you expected to receive as gratuity.

Check Eligibility for minimum year

Make sure the employee has completed at least one year of continuous service.

Understand Basic Salary

Use the last drawn basic salary (exclude all allowances and bonuses).

For example, Rohit’s salary in the UAE is AED 5,000, which includes transport allowance and house allowance. But his basic salary is AED 3,700, excluding all allowances. The gratuity will be calculated based on AED 3,700 only. Entering the basic salary amount in the basic salary calculator in the UAE will provide you with accurate results. 

Identify Your Contract Type

UAE gratuity depends on your contract type. Select the contract type, whether you had a limited or unlimited contract with your employer in the UAE.

Specify the Reason for Leaving

The method of leaving the job directly affects the results of the gratuity calculator for UAE employees, whether you resigned or were terminated. Your gratuity calculation will be different. So, select the correct reason to avoid mistakes.

Enter Your Service Duration

You have to enter the correct date of joining and the last working day in the gratuity calculator UAE to calculate the gratuity amount. These two entries decide your service year for the gratuity calculator formula.

Why Is Gratuity (مكافأة) Important for Employees?

Gratuity, also known as مكافأة (gratuity meaning in UAE Arabic), is a reward for an employee’s contribution and loyalty to the company. It provides financial security for employees when they leave a job. It also helps employees to manage their expenses after resignation. According to MOHRE, every employee is entitled to receive gratuity on the basis of their monthly salary.

Calculate Gratuity in UAE Free Zones (DMCC, DIFC, DDA, JAFZA)

If you work in a free zone, your gratuity might be slightly different from the standard UAE Labour Law. While most free zones follow the standard gratuity rules, DIFC (Dubai International Financial Centre) takes a different approach and works differently.

Since 2020, instead of the usual end-of-service payment, your employer has added a monthly contribution to your DEWS savings or investment account. Your employer adds money to a savings or investment account each month. Instead of calculating gratuity from your last salary, you simply receive the total amount in your DEWS account when you leave.

How to Calculate Gratuity When an Employee Resigns

The MOHRE gratuity calculator UAE follows the latest labour law updates. Here’s a simple guide on gratuity calculation in UAE in case of resignation: 

Step 1: Check your eligibility

An employee must serve at least 1 year with their employer to be eligible for end-of-service benefits, which you can easily estimate using a gratuity calculator UAE.

Step 2: Know Your Basic Salary

• Only the basic salary is considered (not allowances or bonuses).
• Let’s see how to calculate gratuity in UAE for 2 years of service with a basic salary of AED 5,000.

Step 3: Count Your Years of Service

• Calculate the total number of years worked from your joining date to your last working day using a gratuity calculator UAE to get accurate results instantly.

Step 4: Apply the Gratuity Formula

The formula for gratuity calculation in UAE explained above, applies to 21 or 30 days, depending on your service period.

For example: Your basic salary = AED 5,000

Years of service in the organisation = 2

Gratuity Days = 21

Gratuity = (5,000 × 21 × 2) ÷ 30

Your Gratuity = AED 7,000

So, the employee will receive AED 7,000 gratuity.

Step 5: Serve Notice Period

To receive full gratuity, you must serve your notice period as per your contract (usually 30–90 days).

Gratuity rules for resignation and termination as per the new UAE labour law 

As per the new UAE Labour Law (MOHRE), gratuity calculation is the same for limited and unlimited contracts. You can easily estimate your benefits using a gratuity calculator UAE, though the amount may vary depending on how you leave your job. Let’s understand with a simple example to calculate my gratuity UAE: 

Comparison of Resignation vs Termination gratuity calculations

Here is the gratuity calculation in UAE in case of termination, and the gratuity calculation in the UAE in case of resignation for employees under contracts. You can also use our gratuity calculator UAE to quickly estimate your end-of-service benefits.

Scenario	Will You Get Gratuity?	Gratuity Formula	Notes
Resignation (after 1 year)	Yes	21 days’ basic salary per year for the first 5 years and 30 days per year after 5 years	Employees must complete at least 1 year of continuous service and serve the notice period
Resignation (before 1 year)	No	Not Applicable	No gratuity if service is less than 1 year
Termination without reason	Yes	Same as the standard MOHRE formula	Maximum gratuity capped at 2 years’ basic salary
Termination for misconduct	May not be eligible	Gratuity may be reduced or forfeited	Depends on serious violations under the UAE Labour Law

Types of Employment Contracts in the UAE

Under the updated UAE Labour Law, the gratuity rules UAE that employees follow are the same for both limited and unlimited contracts. In simple terms, it no longer matters whether your contract is limited or unlimited; the gratuity calculation rules are the same. Let’s take a look at what each type of contract means.

Limited Contract

A limited contract is a job agreement that clearly shows when your job starts and when it ends. Most private jobs in the UAE now use this type of contract. The new contract can be renewed with mutual agreement between the employer and the employee. When the contract reaches its end date, it finishes automatically unless it is renewed. The new law says employers must issue fixed-term contracts rather than open-ended ones.

Unlimited Contract

An unlimited contract was the old type of employment agreement used in the UAE before the new updates under the UAE Labour Law. This contract did not have a fixed end date.

It would continue for as long as the employee and employer wanted to work together. 

Renewed Contract

If a limited contract is renewed, it will be treated as part of the original contract under UAE Labour Law Article 38. In other words, the duration of both contracts will be combined to calculate gratuity in the UAE, even though it’s a new contract.

Limited vs Unlimited Contract Gratuity Comparison

Want to know your exact gratuity calculation? Explore the detailed UAE calculation formulas for every limited and unlimited contract as per the UAE labour law.

Gratuity Scenario	Limited Contract	Unlimited Contract	In simple words
Less than 1 year of service	No Gratuity	No Gratuity	Law requires Minimum 1 full year of service
1 to 5 years of service	(Basic Salary × 21 days × Service Years) ÷ 30	(Basic Salary × 21 days × Service Years) ÷ 30	As per the new labour law, both get the same amount of gratuity
More than 5 years of service	21 days for first 5 yrs + 30 days per year after	21 days for first 5 yrs + 30 days per year after	After 5 years, 30 days basic salary per extra year
Maximum cap	Total gratuity must not exceed 2 years’ basic salary	Total gratuity must not exceed 2 years’ basic salary	*The law does not allow more than 2 years’ basic salary.
Calculation method	Based on basic salary	Based on basic salary	All the allowances are excluded

* Even if you have worked for 20 years, UAE law caps gratuity at two years’ basic salary, so your maximum payout will never exceed that limit

Can Gratuity be Denied?

As per the new UAE Labour Law (MOHRE), gratuity may be denied only in specific situations. The situations are as follows:

• Employees who do not work for the company for at least one full year are not going to get any gratuity.
• If an employee does something wrong, like commit fraud or theft or break the trust of the company, they might not get their gratuity, or it could be reduced.
• When an employee does not follow the labour law, and the company has to let them go because of that, the employee’s gratuity will be affected according to the law.

Gratuity in the UAE can only be denied if the employee has not completed one year of service or is dismissed for gross misconduct under the labour law.

What Happens When Employers Don’t Pay Gratuity in the UAE?

If an employer fails to pay gratuity, then they may face serious consequences as per the UAE Labour Law. Gratuity is a right that employees have. It must be paid as per the rules made by the Ministry of Human Resources and Emiratisation (MOHRE).

Employers are required to pay gratuity within 14 days from the employee’s last working day. If gratuity is not paid without a valid legal reason, the employee can file a complaint with MOHRE.

In such cases, MOHRE may;

                  Investigate the case

                  Call both parties for a Conciliation

                  Order the employer to pay the pending gratuity

If the employer continues to refuse payment, they may face fines, penalties, or legal action through the UAE Labour Court.

The New UAE Savings Scheme: Is Your Gratuity Being Invested?

The UAE has introduced a new savings scheme as an alternative to the traditional end-of-service gratuity system. Under the old system, the employer promises to pay a lump-sum amount when you quit. But in the new system, employers will invest employee gratuity into trusted funds like Lunate Damam or national bonds.

Is the saving scheme mandatory in the UAE?

No, this new savings scheme is not mandatory in the UAE. All the private companies can choose whether to adopt the gratuity system or the savings scheme model approved by MOHRE. Employees must comply with the HR department to confirm which system they are using.

How is the Savings Scheme Different from Traditional Gratuity?

Here is the quick comparison:

Feature	Traditional Gratuity System	UAE Savings Scheme (Alternative EOSB calculator)
How It Works	The employer pays a lump sum when you leave the job	The employer contributes money regularly into an approved investment fund
When You Get Paid	At the end of the service	Contributions grow during employment and are paid when you leave
Investment Growth	No investment, fixed calculation only	Money may grow through regulated investments
Is It Mandatory?	The default system under the UAE Labour Law	Voluntary for employers (optional scheme)
What You Receive	Fixed gratuity based on salary & years	Contributions + possible investment returns
Risk to Employer	The employer must arrange full payment at once	Payments are made gradually during employment

Gratuity for Domestic Workers in the UAE

Domestic workers in the UAE, like maids, nannies, drivers, cooks and gardeners get gratuity. The gratuity calculation for domestic workers is a little different from corporate employees.

The UAE Domestic Workers Law, which is Federal Decree-Law No. 9 of 2022, does not clearly say how to calculate the gratuity pay. So now there is no fixed rate for domestic workers.

However, in practice, many employers still use a rule of thumb to calculate gratuity for domestic workers. They give 14 days of salary for each year the worker has been with them. This only applies if the worker has been with them for at least one year.

How to Calculate Final Settlement in the UAE?

Final settlement in the UAE is the amount you receive when you leave your job. It usually includes your unpaid salary, payment for unused annual leave, your gratuity, and any other benefits mentioned in your contract. The company adds all these things together, and then they deduct any money you owe them.

Final Settlement = (Unpaid Salary + Leave Encashment + Gratuity + Other Allowances) – Deductions

Gratuity Calculator for Dubai, Abu Dhabi & All Emirates

No matter which Emirate you work in, calculating your gratuity does not have to be confusing. Whether you are in Dubai, Abu Dhabi, Sharjah, or any other emirate, our online gratuity calculator uae make it easy. See below for a better understanding:

UAE Emirate	Gratuity Calculator UAE Guide
Dubai	Use the gratuity calculator Dubai to quickly see your end-of-service benefits without doing any tricky math.
Abu Dhabi	The gratuity calculator Abu Dhabi helps you calculate exactly how much you will get based on your salary and years of service.
Sharjah	Check your Sharjah gratuity easily with this online gratuity calculator UAE: no formulas, just enter your details.
Ajman	Planning to leave your job in Ajman? Use the gratuity calculator UAE in Ajman to know your legal payout instantly.
Fujairah	Fujairah employees can calculate their gratuity online in seconds using this easy tool.
Ras Al Khaimah	Find out your Ras Al Khaimah gratuity without stress; just input your salary, service years, and contract type.
Umm Al Quwain	Even in Umm Al Quwain, the gratuity calculator UAE works for all employees, making end-of-service planning simple.

UAE Gratuity Maximum Cap Explained

The UAE Labour Law says that the end-of-service gratuity has a limit. This means that the total amount of money an employee can get when they leave a job cannot be more than two years of their basic salary. 

Let’s assume your basic monthly salary is AED 3,500.

Two years’ basic salary = AED 3,500 × 24 months = AED 70,000

So, even if your calculated gratuity amount exceeds this figure, the maximum payable gratuity will still be AED 70,000 as per UAE law.

Gratuity vs. Tip – Understanding the Difference

Many people get confused when they hear the word “tip.” It is easy to mix up ‘tip’ and ‘gratuity’, but in the UAE, they are very different. Gratuity is your legal end-of-service payout, while a tip is just a customer’s appreciation to say “Thank you” for your good service.

Here is the quick comparison between gratuity and tip:

Aspect	Gratuity	Tip
Mandatory?	Yes, as per the UAE Labour Law	No, completely optional
Who Pays?	Employer	Customer
When Paid?	Only at the end of service	Anytime during service
Calculation	Based on basic salary and years of service, using a legal formula	It is decided by the customer
Protected by Law?	Yes	No

8 Smart Tips to Avoid Losing Gratuity in the UAE

Some employees in the UAE miss out on thousands of dirhams simply because they don’t check their gratuity or serve the correct notice period. Don’t let that happen to you! Here are the few steps to boost your gratuity:

Know Your Contract Type: Limited or unlimited contracts affect your gratuity calculation.

Check Your Eligibility: You must complete at least 1 year of service to claim gratuity, which you can be easily estimate using our gratuity calculator UAE..

Stay for Key Milestones: If you stay for more than 5 years, your gratuity will increase according to the UAE law.

Keep Your Salary Structure Clean:  Keep Your Salary Structure Clean: The gratuity is calculated based on your salary. So it is very important that all your allowances are clearly separated from your salary.

Serve Your Notice Period: Serve the proper notice period to avoid losing your gratuity.

Document Everything: Always try to maintain a proper record of work permits, every written letter, memo, salary slip, offer letter, contract renewal, appointment letter, and joining report. Having these records can save more time on calculating gratuity and help in legal matters.

Understand UAE Labour Law Updates: The UAE Labour Law changes regularly. These changes can affect how your gratuity is calculated. You need to stay informed about the updates from the MOHRE. This way, you will know your rights. You can avoid mistakes. You will also get the end-of-service benefits that you are entitled to.

Seek Legal Assistance: If you are really confused about what the law says about your rights in the United Arab Emirates, you should. See a specialist. A United Arab Emirates labour law specialist is the person to help you with this. They will make sure you get everything that you are supposed to get. A UAE labour law specialist can help you protect your rights in the United Arab Emirates.

4 Common Mistakes to Avoid

You can lose a lot of money if you make a mistake when calculating your gratuity. You can lose thousands of dirhams. So you need to be careful and avoid these mistakes when you calculate your gratuity.

Leaving Before Completing 1 Year of Service

You will only get gratuity if you have worked for 1 year of continuous service. If you leave your job early, then you will not be eligible for gratuity. So always check your joining date and plan to leave the organisation accordingly. 

Not Serving a Proper Notice Period

If your contract requires a notice period and you skip it, your employer may deduct part of your gratuity. Always serve the full notice period to avoid losing money.

Confusing Basic Salary with Allowances

Gratuity is calculated on your basic salary. It does not include allowances, bonuses, or benefits. 

Ignoring Updates to UAE Labour Law

It is important to check regular updates from MOHRE, as it occasionally updates labour rules and procedures.