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Gratuity Calculator Uae
Free online Gratuity Calculator Uae tool
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Frequently Asked Questions
Gratuity in UAE is calculated based on your basic salary and years of service. For the first 5 years, you receive 21 days' salary for each year of service. After 5 years, you receive 30 days' salary for each additional year. The calculation is based on your daily wage (basic salary ÷ 30).
A limited contract has a fixed duration (usually 2-3 years) and specific end date, while an unlimited contract has no fixed end date. The main difference in gratuity calculation is that for unlimited contracts, if you resign before completing 5 years, you receive only 50% of the gratuity amount.
For unlimited contracts, if you resign before completing 5 years, you receive 50% of the gratuity amount. After 5 years, you receive the full gratuity amount regardless of resignation. For limited contracts, you receive the full gratuity amount upon completion of the contract.
Gratuity is calculated based on your basic salary only, not the total salary. Allowances, bonuses, and other benefits are not included in the gratuity calculation as per UAE Labor Law.
If you work less than one year, you are not entitled to any gratuity payment under UAE Labour Law, regardless of the contract type or termination reason.
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