UAE Gratuity Calculator 2026
Calculate your end-of-service gratuity instantly. Based on Federal Decree-Law No. 33 of 2021 — the current UAE Labour Law.
Enter your basic monthly salary and years of service to get your gratuity with a full calculation breakdown.
UAE End-of-Service Gratuity Calculator 2026
Based on Federal Decree-Law No. 33 of 2021 · For private sector employees
Basic salary only — excludes housing, transport, and other allowances
How UAE Gratuity is Calculated
21 days of basic salary per year for the first 5 years of service
30 days of basic salary for each year beyond 5 years of service
Total gratuity cannot exceed 2 years' worth of basic salary
Formula: Daily Wage = (Basic Monthly Salary × 12) ÷ 365. Gratuity = Daily Wage × Days Entitlement. Applicable to all private sector employees under UAE Federal Labour Law. Free zone employees (DIFC, ADGM) may follow separate regulations.
Key Rules to Know
Basic salary only
Housing, transport, and other allowances are excluded. Only basic salary counts toward gratuity.
Minimum 1 year service
No gratuity is payable if the employee has served less than 1 year.
New law: no contract type distinction
Since February 2022, all contracts follow the same gratuity rules regardless of resignation or termination.
Paid within 14 days
Employers must pay gratuity within 14 days of employment ending or face MOHRE penalties.
Partial years count
Pro-rata calculation applies to partial years. 6 months = 0.5 years in the formula.
2-year salary cap
No matter how long the service, total gratuity is capped at 24 months of basic salary.
Frequently Asked Questions
Is gratuity taxable in the UAE?▾
No. The UAE does not levy income tax, so end-of-service gratuity payments are not subject to any tax deductions for the employee.
What if my employer refuses to pay gratuity?▾
Gratuity is a legal right under UAE Labour Law. If your employer refuses, you can file a complaint with MOHRE (Ministry of Human Resources and Emiratisation) through the Tasheel service centres or the MOHRE app.
Does gratuity apply to part-time employees?▾
Yes. Part-time employees are entitled to gratuity on a pro-rata basis based on actual hours worked relative to a full-time equivalent.
Can I automate gratuity calculations for my company?▾
Yes. HRX360 automatically calculates end-of-service gratuity for every employee based on their basic salary, start date, and UAE Labour Law rules — no manual calculations needed.
Automate gratuity for your entire workforce
HRX360 calculates end-of-service gratuity automatically for every employee — WPS-compliant, MOHRE-aligned, and accurate. No spreadsheets, no manual errors.