💰 UAE Gratuity Calculator 💼
Calculate your end-of-service benefits according to UAE labor law for unlimited & limited contracts
Employment Details
Your Gratuity Calculation
📜 UAE Gratuity Law Explained
Gratuity (end-of-service benefits) in the UAE is calculated based on your basic salary, years of service, and contract type according to UAE Labor Law.
Gratuity Calculation Rules
| Service Period | Unlimited Contract | Limited Contract |
|---|---|---|
| Less than 1 year | No gratuity | No gratuity |
| 1-5 years | 21 days basic salary per year | 21 days basic salary per year (if completed contract) |
| More than 5 years | 30 days basic salary per year | 30 days basic salary per year (if completed contract) |
Important Notes
- Gratuity is calculated on basic salary only (housing, transport etc. not included)
- For partial years, each month worked counts as 1/12 of the annual gratuity
- If terminated for gross misconduct, no gratuity is payable
- For unlimited contracts, resignation before 5 years reduces gratuity to 1/3 (1-3 years) or 2/3 (3-5 years)
❓ UAE Gratuity FAQs
Gratuity is calculated only on the basic salary component of your compensation. Allowances like housing, transport, etc. are not included in the calculation.
Employees who resign before completing 1 year of service are not entitled to any gratuity payment under UAE labor law.
For limited contracts, full gratuity is only paid if you complete the contract term. If terminated early, it depends on who initiated termination and the reason. Unlimited contracts have different reduction scales for early resignation.
Employers can only deduct amounts owed by the employee (like outstanding loans) with written consent. Normal company penalties cannot be deducted from gratuity.
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