👉 How to Calculate Gratuity in UAE (2026 Guide)
What is gratuity in the UAE?
Gratuity is an end-of-service benefit paid to employees in the UAE when they leave a company after completing at least one year of service. It is a key part of UAE labour law and helps employees receive financial compensation based on their tenure.
How is gratuity calculated?
Gratuity is calculated based on your basic salary (not including allowances).
First 5 years: 21 days of salary per year
After 5 years: 30 days of salary per year
Example calculation
If your basic salary is AED 10,000:
Daily wage = 10,000 ÷ 30 = AED 333
Gratuity (3 years) = 333 × 21 × 3 = AED 20,979
What affects your gratuity?
Length of service
Type of contract
Whether you resign or are terminated
Use our free gratuity calculator
Skip the manual calculations.
👉 Use our UAE Gratuity Calculator to get an instant estimate based on your salary and years of service.
Final thoughts
Understanding your gratuity helps you plan better when changing jobs or leaving the UAE. Always double-check your employment contract for exact terms.
