GratuityCalc

UAE Gratuity Calculator 2026

Use our free, accurate tool to calculate your end-of-service gratuity in the UAE. Our engine is compliant with the Federal Decree-Law No. (33) of 2021 governing labour relations in the UAE.

Updated for UAE Labour Law 2023MOHRE Official Formula
AED

Basic salary only — not including allowances

Defaults to today

All new contracts since Feb 2, 2022 are Limited

Enter your salary and service dates to see your gratuity calculation

How to Use the UAE Gratuity Calculator

According to the Ministry of Human Resources and Emiratisation (MOHRE), every employee who completes one or more years of continuous service is entitled to an end-of-service gratuity at the end of their service.

Important Update

Since February 2022, the UAE has moved exclusively to Limited (Fixed-term) contracts. Unlimited contracts signed before this date remain valid but must eventually be converted.

The Formula

  • 1
    Service (1–5 years): Entitled to 21 days of basic salary for each year of service.
  • 2
    Service (Over 5 years): Entitled to 30 days of basic salary for each year after the first 5 years.

Official MOHRE Reference

Visit official MOHRE website

Frequently Asked Questions

How is gratuity calculated in UAE for 2 years?

Under the 2023 law, for a limited contract with 2 years of service, you are entitled to 21 days of basic salary for each year of service. Total = 42 days of basic pay.

Is gratuity calculated on basic salary or total salary in UAE?

In the UAE, gratuity is strictly calculated based on the last drawn Basic Salary. Allowances like housing, transport, and utilities are not included unless specified in the contract.

What is the maximum gratuity in UAE?

The total gratuity amount for an employee in the UAE cannot exceed the equivalent of two years of the employees last drawn salary.

How does the new UAE labour law 2023 change gratuity?

The primary change is that all contracts are now Limited (fixed-term). Resignation reduction rules for unlimited contracts are being phased out as those contracts expire or convert.