Free tool
UAE End of Service Gratuity Calculator
Estimate end-of-service gratuity for private sector employees from basic salary and dates of service.
Estimate only. Based on the UAE private sector rules for unlimited contracts. Free zones such as DIFC and ADGM have their own rules. Confirm with MOHRE or your free zone authority.
How gratuity is calculated
For private sector employees who complete at least one year of service, gratuity is based on basic salary. The daily wage is basic monthly salary divided by 30.
- 21 days of basic salary for each of the first five years of service
- 30 days of basic salary for each year after the fifth
- The total cannot be more than two years of basic salary
Allowances are not included in the calculation unless your contract says they are part of the basic wage.
FAQ
Questions, answered
Who is entitled to gratuity?
Generally, private sector employees who complete one year of continuous service.
Is gratuity based on basic salary or total salary?
Basic salary, which is the wage before allowances such as housing or transport.
Is there a maximum amount?
Yes. The total is capped at two years of the employee's basic salary.
Does this apply in free zones?
Not always. DIFC, ADGM and some other free zones have separate schemes, so check with your authority.
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