UAE Gratuity Calculator 2025: Don’t Lose What You Deserve!

Are you preparing to leave your job in the UAE and want to know your rightful end-of-service benefits? The UAE Gratuity Calculator 2025 makes it easy to determine exactly what you’re entitled to Ensuring you don’t miss out on any part of your gratuity. In this guide, you will learn how to calculate gratuity in the UAE according to the latest updates by the MOHRE, including eligibility requirements and other affecting factors.

Gratuity Calculator UAE

Easily compute your UAE end-of-service benefits online with the latest labor law updates. Use our free tool to get a fast and accurate estimate of your gratuity payout:

What is Gratuity in the UAE?

Gratuity, also known as End-of-Service (EOS) benefits, is a lump sum payment that employees in the UAE receive after completing at least one year of continuous service. It acts as a financial cushion when leaving employment, and is mandatory under UAE labor law.

How to Use the UAE Gratuity Calculator

The UAE Gratuity Calculator offers a simple way to calculate your entitlement. Here’s how to use it:

• Enter your last drawn basic salary (note: this excludes allowances like housing and transport).
• Select your first and last working days from the calendar.
• Choose your type of contract (limited or unlimited).
• Pick your reason for exit (resignation, termination, etc.).
• Click “Calculate Gratuity.”

The calculator will instantly display your estimated gratuity based on the latest MOHRE regulations.

How Gratuity is Calculated in the UAE

Gratuity is calculated differently based on years of service:

• For 1–5 years of service: 21 days of basic salary for each year.
• Beyond 5 years: 30 days of basic salary for each additional year.

Example:

If you earned AED 12,000 per month and worked for 7 years:

• Daily wage = AED 12,000 ÷ 30 = AED 400
• First 5 years = (400 × 21) × 5 = AED 42,000
• Remaining 2 years = (400 × 30) × 2 = AED 24,000
• Total gratuity = AED 42,000 + AED 24,000 = AED 66,000

How to Calculate Gratuity of Part-Time Employees

To determine the gratuity for part-time employees in the UAE, follow these steps:

• Find the Work Ratio: Divide the part-time hours by full-time hours and multiply by 100. For instance, if a part-time employee works 20 hours weekly and the full-time schedule is 40 hours:
  • Work ratio = (20 ÷ 40) × 100 = 50%.
• Gratuity for 1 to 5 Years of Service: Multiply the daily wage by 21, then by the number of years worked:
  • Gratuity = (Daily wage × 21) × Years of service.
• Gratuity Beyond 5 Years of Service: For each additional year after 5 years, multiply the daily wage by 30:
  • Gratuity = (Daily wage × 30) × Additional years.
• Calculate Total Full-Time Gratuity: Add the gratuity amounts from the above two steps.
• Determine Part-Time Gratuity: Multiply the full-time gratuity by the work ratio percentage. For example, if the full-time gratuity is AED 50,000 and the work ratio is 50%, then:
  • 50,000 × (50 ÷ 100) = AED 25,000.

This method ensures that part-time employees receive a gratuity proportional to their working hours.

Eligibility Criteria for Gratuity in the UAE

To qualify for gratuity in the UAE, employees must meet the following conditions:

• A minimum of one year of continuous service with the same employer is required.
• Employees with less than one year of service are not entitled to gratuity.
• Full-time expatriate employees in the private sector are eligible for gratuity benefits.
• UAE nationals are excluded, as they are covered by the national pension scheme.
• Employees dismissed for serious misconduct may forfeit their gratuity entitlement.
• Workers who resign or are terminated (excluding misconduct) after completing one year of service are eligible for gratuity.
• The gratuity payout cannot exceed two years’ worth of the employee’s basic salary.
• The calculation is based solely on the last drawn basic salary, excluding additional allowances such as housing, transport, or bonuses.

Latest MOHRE Updates for 2025

The Ministry of Human Resources and Emiratisation (MOHRE) has introduced several key updates regarding gratuity payments in the UAE:

• Eligibility for Part-Time and Temporary Workers: Part-time and temporary employees are now entitled to gratuity payments. The calculation of their gratuity is based on the proportion of their working hours compared to full-time employees.
• Exclusion of Unpaid Leave from Gratuity Calculation: Unpaid leave days will no longer be factored into the gratuity calculation, ensuring only paid service days are considered.
• Gratuity Payment Deadline: Employers must now pay the gratuity within 14 days of the employee’s exit. Failure to comply with this deadline can lead to penalties and fines.
• Optional Gratuity Savings Scheme: Employees can now opt to invest their gratuity in a savings scheme while they are still employed, offering greater financial flexibility.
• Shift to Limited Contracts: As of recent reforms, unlimited (open-ended) contracts are no longer permitted. All contracts must now be limited-term, valid for three years, after which they can be renewed by mutual consent.

Gratuity Rules for Limited Contracts in the UAE

The following outlines the gratuity entitlements for employees under limited contracts based on their length of service:

• Less than one year of service: No end-of-service gratuity.
• From 1 to 5 years of service: 21 days of basic salary for each year.
• More than 5 years of service: 21 days of basic salary for the first five years, and 30 days for each additional year.

Gratuity Rules for Unlimited Contracts in the UAE

This section explains the gratuity calculation for employees under unlimited contracts, distinguishing between resignation and termination scenarios:

In the event of resignation:

• Less than one year of service: Employees are not entitled to gratuity.
• From 1 to 3 years of service: Employees are entitled to one-third of gratuity.
• From 3 to 5 years of service: Employees are entitled to two-thirds of gratuity.
• More than 5 years of service: Employees are entitled to 21 days of basic salary for each of the first five years, and 30 days for each additional year.

In the event of termination:

• Less than one year of service: No gratuity.
• From 1 to 5 years of service: Gratuity is calculated based on 21 days of basic salary for each year of service.
• More than 5 years of service: Gratuity is calculated as above.

Common Mistakes to Avoid

Here are some mistakes that employees and employers should avoid when calculating their end-of-service gratuity:

• Including allowances and bonuses, in the gratuity calculation—Only the basic salary counts.
• Misunderstanding the type of contract, which affects the calculation.
• Incorrectly calculating service length, especially excluding unpaid leave.

Additional Gratuity Benefits in the UAE

After the end of service, employees in the UAE are entitled to additional end-of-service benefits, including:

• Unused annual leave pay: Compensation for any unused leave.
• Accrued salaries: Employers must repay any outstanding payments before the end of the notice period.
• Other service benefits: These may include allowances for long-term employees based on their employment contract.

Conclusion

Your gratuity is a right, not a privilege ensure you calculate it accurately with the UAE Gratuity Calculator. Whether you’re a full-time or part-time employee, staying informed helps you claim what you rightfully deserve when your job comes to an end.