HisabCalc › Country-specific

UAE Gratuity Calculator

Estimate the end-of-service gratuity a UAE private sector worker earns from basic salary and completed years of service, with the two-year pay cap applied.

Enter your numbers

Monthly basic salary (AED)

Example: 5000

Years of service

Example: 7

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

dailyBasic = monthlyBasic / 30; firstFiveYears = 21 x dailyBasic x min(years, 5); remainingYears = 30 x dailyBasic x max(0, years - 5); totalGratuity = min(firstFiveYears + remainingYears, monthlyBasic x 24)

How the calculation works

Enter your basic salary, not the full package, and the number of completed years of service, using the amount stated in the employment contract.

The tool pays twenty-one days of basic wage for each of the first five years and a full thirty-day month for every year after that.

It caps the result at two years of basic pay, the maximum a UAE employer owes under the labour law.

Common mistakes

Calculating on total salary instead of basic, because UAE gratuity is legally based on basic pay alone and not on allowances.
Forgetting the two-year pay cap, since very long service does not keep increasing the gratuity beyond twenty-four months of basic wage.

When to use it

Use it to check the gratuity a UAE employer offers when a contract ends and you have served at least one year.
Use it to see how the rate rises from 21 days to a full month after five years, which rewards a longer stay.

Worked example

With a basic salary of AED 5,000 and 7 years of service, the daily basic is AED 166.67. The first five years give AED 17,500 and the remaining two years give AED 10,000, so the total gratuity is AED 27,500.

Daily basic wage 164.38

First five years 17,260.27

Remaining years 9,863.01

Total gratuity 27,123.29

Common questions

What salary is used for UAE gratuity?

Only the basic salary counts, so allowances for housing, transport and food are left out of the gratuity calculation even though they are part of your package.

Last updated: 2026-10-03