UAE Gratuity Calculator

How UAE gratuity is usually calculated

In the UAE private sector, the traditional gratuity estimate is built around monthly basic salary, not the full package. The common structure is no gratuity before one full year of continuous service, then 21 days of basic salary for each year of the first five years, followed by 30 days of basic salary for each year after that.

Unpaid leave days are excluded from the eligible service period, and the final gratuity amount is capped at two years of wage. That means the key inputs are not just salary and dates, but also the parts of the employment record that change eligible service length.

What to enter in this calculator

• Monthly basic salary in AED
• Service start date and end date
• Any unpaid leave days that should be excluded
• Whether the employee is expatriate or UAE national
• Whether the work pattern is full-time or prorated

Why basic salary matters more than allowances

Many UAE packages include housing, transport, and other allowances on top of the basic salary. Those allowances matter for monthly cash flow, but the traditional gratuity formula is centered on the basic salary figure. That is why two employees with the same package value can still have very different gratuity outcomes if their basic salary is different.

Traditional gratuity vs savings scheme

Some employers in the UAE use the voluntary alternative end-of-service savings scheme instead of the traditional gratuity model. This calculator is meant for the classic gratuity structure. If the employer has already moved to the savings scheme, the final payout may follow that plan rather than the estimate shown here.