Gratuity Calculator UAE (2026) - Free end of service Calculator
If you work in the UAE, knowing your end-of-service benefits is extremely important. Our UAE gratuity calculator helps you instantly calculate your gratuity in UAE based on your contract type, basic salary, and years of service accurate according to MOHRE rules & UAE Labour Law.
Free Online Gratuity Calculator UAE (2026)
About Us
The Go Gratuity Tool works across all Emirates including Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al khaimah and Umm Al Quwain. It is trusted like the official MOHRE gratuity calculator UAE and helps in quick, transparent calculations.
How It Works
Employees with 1–5 years of service get 21 days of salary per year. Employees with more than 5 years get 30 days of salary per year. Gratuity is always calculated on basic salary, not gross. Example: 2 years = 21 days × 2. 5 years = 30 days × 5.
Latest Blogs
“The new UAE Labour Law gratuity calculation between 2022 and 2025 updated rules for mainland and free zone workers. Special mentions include DIFC, DMCC, JAFZA and Saif Zone with separate systems.
UNDERSTANDING GRATUITY IN UAE
GRATUITY IS LEGAL RIGHT
End of service benefits are a legal right that every worker in the UAE is entitled to when leaving a company.
DESIGNED FOR EMPLOYEES, EXPATS & HR
Employees, expats, HR teams, and employers often need a gratuity calculator online to avoid confusion and errors.
ALL EMIRATES COVERED
The Go Gratuity Tool works across all Emirates including Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain.
What is Gratuity in UAE
Gratuity pay is an end of service benefit under UAE Labour Law gratuity calculation. It provides employees with a lump sum after at least one year of service. The formula for gratuity calculation in UAE is based on basic salary only, not gross salary. This means allowances, commissions, or bonuses are excluded.
There are two main types of contracts that affect gratuity. A limited contract gratuity calculation UAE requires completing the full contract, while an unlimited contract gratuity calculation in UAE has different rules for resignation and termination. The MOHRE and Ministry of Labour UAE gratuity calculation limited contract rules apply across Dubai, Abu Dhabi, and other Emirates.
Why Choose Gratuity Calculator
Accurate Calculations
Gives accurate results nased on UAE Labour Law gratuity calculation covering both limited and unlimited contracts, so payouts are always correct.
Easy & Free to Use
Simple to use and quick, the tool is updated as a UAE gratuity calculator 2025, so employees and HR teams always get the most current calculation.
Trusted & Transparent
Trusted bt expats, employees, HR teams and comapnies across the UAE because it makes end-of-service benefits easy to understand and transparent.
How Gratuity Is Calculated
The UAE Gratuity Calculator 2025 uses a simple gratuity calculation formula:
- Employees with 1-5 years of service get 21 days of salary per year.
- Employees with more than 5 years get 30 days of salary per year.
- Gratuity is always calculated on basic salary, not gross.
Example:
How to calculate gratuity in UAE for 2 years: 21 days *2.
EXAMPLE
Basic Salary: AED 7,500
Years of Service: 5 years
Contract Type: Unlimited
- Calculate Daily Wage.
Divide the monthly salary by 30 to get the daily wage. AED 7,500 / 30 = AED 250 per day.
- Calculate Gratuity for the First 5 Years
For an unlimited contract, the gratuity is calculated as follows:
- 21 days salary per year for the first 5 years.
21 days * AED 250/day * 5 years = AED 26,250
- Apply the Two-Year salary Cap
UAE labor law caps the gratuity at two years salary.
- 2 years * AED 7,500/month = AED 15,000
Since AED 26,250 exceeds the cap, the maximum gratuity payable is AED 15,000.
LIMITED & UNLIMITED CONTRACTS
Gratuity calculation varies significantly between limited and unlimited contracts in the UAE. It’s important to understand the differences so you can accurately calculate your end-of-service benefits.
Limited Contract
Key Points:
Contract Duration:
Limited contracts are fixed term contracts, typically between 1-3 years.
Gratuity Eligibility:
Employees on limited contracts are entitled to gratuity only if they complete of the contract.
Gratuity Calculation:
The gratuity is calculated nbased on the final salary after completion of the contract term.
Example:
For a 2-years limited contract, if your salary is AED 5,000 per month, your gratuity will be calculated based on the salary at the time of contract completion”.
Unlimited Contract
Key Points:
Contract Type:
Unlimited contracts are open ended, offering more flexibility and job security.
Gratuity Eligibility:
Employees on unlimited contracts are entitled to gratuity if they have worked for at least one year.
Gratuity Calculation:
The gratuity is calculated based on the last salary upon termination and they are entitled to gratuity even if they resign voluntarily.
Example:
For an unlimited contract, if your salary AED 5,000per month and you’ve worked for 2 years, your gratuity will be calculated based on your last drawn salary at the time of leaving job.
step 3:Explore different scenarios
Try different scenarios like using the gratuity calculator 5 years or checking how to calculate gratuity in Abu Dhabi to see how service length changes your benefits.
step 4:save or use the results
The tool is more accurate than manual methods or using Excel sheets such as the gratuity calculation formula in Excel UAE, saving time and avoiding mistakes..
USING GO GRATUITY TOOL STEP BY STEP
Step 1:Enter your information
Enter your basic salary, total service years, months worked, and whether you are under a limited or unlimited contract to begin the UAE gratuity calculator process.
Step 2:click "calculate"
Click calculate and get an end of service gratuity UAE calculation example instantly. The tool shows your exact payout in seconds without confusion or manual effort.
step 3:Explore different scenarios
Try different scenarios like using the gratuity calculator 5 years or checking how to calculate gratuity in Abu Dhabi to see how service length changes your benefits.
step 4:save or use the results
The tool is more accurate than manual methods or using Excel sheets such as the gratuity calculation formula in Excel UAE, saving time and avoiding mistakes..
CITY SPECIFIC GRATUITY CALCULATOR
Gratuity calculator Dubai and online gratuity calculator Dubai are the most searched by expats working in the city
Gratuity calculator Abu Dhabi is common among professionals and government workers
Gratuity calculator Sharjah and freezone gratuity calculator are useful for small businesses and workers in Northern Emirates
UAE GRATUITY LAWS AND UPDATED 2025
The new UAE Labour Law gratuity calculation between 2022 and 2025 updated rules for mainland and free zone workers. The UAE gratuity calculator unlimited contract now provides clear payout differences for resignations and terminations.
Special mentions include DIFC end of service gratuity calculator, Dubai end of service gratuity calculator, and Khaleej Times gratuity calculator references that employees often search for. Zones such as DIFC, DMCC, JAFZA, and Saif Zone may have separate systems.
EMPLOYER AND HR BENEFITS
If yor are un free zones like JAFZA, DMCC, or Saif Zone, you can also use the JAFZA gratuity calculator, DMCC gratuity calculator, or Saif Zone gratuity calculation rules.
Saves time during settlements by automating the termination gratuity calculation in UAE process.
Builds trust with staff using clear service gratuity calculation in UAE results.
Prevents error by replacing manual labour gratuity calculator formulas.
Helps companies plan liabilities with tools like gratuity calculation chart and gratuity calculation Excel format UAE rules.
Free Zone Vs Mainland Gratuity rules
In the UAE, mainland employees follow the standard UAE Labour Law gratuity calculation, while free zone employees may fall under different schemes like the DDA gratuity calculator, JAFZA visa gratuity calculation, or other free zone gratuity calculators. Mainland Example: An employee with 2 years of service under an unlimited contract get 21 days*2 = 41 days of basic salary.
Our Vision
To simplify Free Zone vs Mainland gratuity rules by providing clear, transparent, and reliable calculations for all employees.
Our Mission
With the Go Gratuity Tool, our mission is to support both UAE Labour Law and free zone gratuity schemes, helping employees and HR calculate payouts accurately and with ease.
Our Team
Jasika Fersh
Founder
Ron Bil
CEO
Robin Cattor
General Manager
Marry P.
Advicer
happy clients
We’re Working with
Popular Questions
Gratuity in the UAE is always calculated on the basic salary only. Allowances such as housing, travel, or overtime are not included in the calculation.
Private sector workers receive gratuity based on their years of service and basic salary. From 1–5 years it is 21 days per year, and after 5 years, it becomes 30 days per year.
For a limited contract, gratuity is usually paid if the contract is fully completed. For an unlimited contract, the amount depends on whether the worker resigned or was terminated.
Example: If your basic salary is AED 4,500 and you worked 3 years on a limited contract, gratuity =
(21 days × daily salary × 3 years).
Daily salary = 4,500 ÷ 30 = 150 AED →
Gratuity = 21 × 150 × 3 = AED 9,450.
The minimum service period is 1 year. Employees with less than one year of continuous service are not entitled to end-of-service gratuity.