How To Calculate Gratuity

Understanding how gratuity works in the UAE is essential for every employee. This guide covers the key aspects of How To Calculate Gratuity according to the latest 2023 Labour Law amendments.

Expert Insight

Always refer to your official employment contract filed with MOHRE as the baseline for any gratuity calculation.

Key Rules

The calculation of gratuity in the UAE depends on several factors: the type of contract, the reason for termination or resignation, and the total length of continuous service.

Standard Limited Contract Formula

Gratuity = (Basic Salary ÷ 30) × entitlement_days × years_of_service

entitlement_days21 days for first 5 yrs; 30 days after

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