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.
Does gratuity differ by emirate or free zone?
For almost everyone, no. UAE end-of-service gratuity is set by federal law — Federal Decree-Law No. 33 of 2021 — so the same 21-day / 30-day formula on basic salary applies whether you work in Dubai, Abu Dhabi, Sharjah, Ajman, or any other emirate. There is no separate "Dubai formula" or "Abu Dhabi formula"; MOHRE administers the same rules nationwide, and the calculator above covers all of them.
| Where you work | Which rules apply |
|---|---|
| Dubai, Abu Dhabi, Sharjah & all mainland | Federal MOHRE formula (the calculator above) |
| JAFZA, DMCC, RAKEZ, SAIF & most free zones | Follow the same federal MOHRE gratuity formula |
| DIFC (Dubai) | DEWS savings scheme — monthly employer contributions instead of a lump sum |
| ADGM (Abu Dhabi) | Own employment regulations; end-of-service may run through a qualifying scheme |
| Domestic workers (maids, nannies, drivers) | Separate law — use the domestic worker calculator |
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.How the Tiers Work
Example: 30 days served = ~1.75 days gratuity earned.
Applied for each year of service exceeding 5 years.
UAE Tiered Formula
EOSB = (Basic ÷ 30) × Days × Years
UAE Worked Example
Senior Executive Case
Omar is a senior marketing executive in Abu Dhabi. Basic salary: AED 15,000/month. Service: 8 years.
Eligibility & Reformed Contracts
As of the 2022 reforms, all UAE contracts are now Limited (Fixed-Term). Resignation and termination are now treated equally—there are no longer any percentage reductions for resigning early.
Note: If your contract was signed before February 2, 2022 as an unlimited contract, the old resignation reduction rules still apply: 1–3 years service receives 1/3 of gratuity, 3–5 years receives 2/3.
Free Zone Exception: DIFC
If you work in the DIFC, you are likely part of the DEWS (Workplace Savings) plan. Instead of a lump sum, your employer contributes monthly to an investment fund. Check with HR if you are in DIFC or ADGM.