UAE gratuity calculator for end of service
Enter the basic salary and the service dates. The calculator applies the current rule: 21 days of basic wage for each of the first five years, 30 days for every year after that, capped at two years of wage.
How UAE gratuity works
Who is entitled to gratuity?
Any full-time private-sector employee who completes at least one year of continuous service. Less than one year: no gratuity. Fractions of a year after the first year are paid pro rata.
Is it calculated on basic salary or total salary?
On the basic wage only. Housing, transport and other allowances are excluded. The daily rate is the monthly basic wage divided by 30, so 21 days equals 70% of one month's basic and 30 days equals one full month.
Do I lose gratuity if I resign?
No. The 2022 law removed the old reductions for resignation on unlimited contracts. Resignation and termination now earn the same gratuity once a year of service is complete.
What is the maximum?
The total is capped at two years of wage, which is 24 months of basic salary. The calculator applies the cap automatically and tells you when it bites.
Do unpaid leave days count?
No. Days of unpaid absence are removed from the service period. Paid annual leave and sick leave count normally.
DIFC, ADGM and the savings scheme
DIFC and ADGM run their own end-of-service systems (DIFC uses the DEWS plan). Employers who enrolled staff in the voluntary savings scheme pay through the fund instead. This calculator covers the federal Labour Law.
Gratuity is one line on the payslip. Xrero does the whole payslip.
Salaries from contracts and attendance, gratuity accruals, the WPS SIF file for your bank, leave and payslips in Arabic and English. AED 99 per user per month, setup done for you.
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