How to Calculate Gratuity in UAE in Easy Steps 2025

End of Service Calculator UAE: A 2026 Guide to Gratuity Calculation

The end of service calculator UAE is an essential tool for employees to determine their gratuity entitlement when leaving a company. As per UAE labor laws, all private companies are required to provide end-of-service benefits to their employees. Whether you’re resigning, switching jobs, or completing your contract, understanding how to calculate your gratuity is vital to ensure you receive the correct amount.

In this blog, Burj Diary will guide you through the latest 2026 methods for calculating gratuity in the UAE, both online and manually. We’ll also explore related tools like the UAE gratuity calculator 2024, overtime calculation in UAE, and other financial calculators such as the mortgage calculator UAE, car loan calculator UAE, and VAT calculator UAE. By the end of this guide, you’ll have a clear understanding of how to calculate your gratuity and other financial benefits.

How to Calculate Gratuity in UAE : Key Factors

Before diving into the calculation methods, here are the key factors that influence gratuity in the UAE:

1. Basic Salary Amount: Gratuity is calculated based on your last drawn basic salary, excluding allowances or perks.
2. Service Period: The number of years, months, and days you’ve worked for the company.
3. Reason for Leaving: Whether you resigned, were terminated, or completed your contract.
4. Contract Type: Limited, unlimited, or renewed limited contracts.

Gratuity Calculation Criteria (2026 Updates)

If the Employee is Terminated

• Employees must complete at least one year of continuous service to be eligible for gratuity.
• For the first five years, gratuity is calculated as 21 days of basic pay for each year of service.
• For service beyond five years, gratuity is calculated as 30 days of basic pay for each additional year, capped at two years’ total basic salary.
• Unpaid leave is not included in gratuity calculations.

If the Employee Resigns

• No gratuity is provided for resignations within the first year of service.
• For 1-3 years of service, employees receive 1/3 of 21 days’ basic pay per year.
• For 3-5 years of service, employees receive 2/3 of 21 days’ basic pay per year.
• For service exceeding five years, employees receive the full 21 days’ basic pay per year.

End of Service Calculator UAE: Online Methods

Calculating gratuity manually can be complex, but online tools like the end of service calculator UAE make it easy. Here are two reliable methods:

1. Through the DDA Website

The Dubai Development Authority (DDA) offers an online gratuity calculator. Simply enter your basic salary, employment dates, and contract details to get an estimate.

2. Through the MOHRE App

The Ministry of Human Resources and Emiratisation (MOHRE) app provides an official end of service calculator UAE. After logging in with your UAE Pass, navigate to the “End of Service Calculator” section, input your details, and get an accurate gratuity estimate.

Manual Gratuity Calculation in UAE

If you’re wondering how to calculate gratuity in UAE in case of resigning, know that the calculations will differ slightly in this scenario:

• There will be no gratuity for resigning in the first year. 
• If you’ve completed one year and are resigning between 1 and 3 years, then you’ll receive 1/3 of your 21 days of basic pay as gratuity for every service year. 
• If you’re resigning between 3 and 5 years, your gratuity will be 2/3 of the basic pay of 21 days for each working year. 
• If you’ve worked for more than 5 years and you choose to resign after that, then you’ll get the complete 21 days of base salary as your gratuity for each service year. 
• No unpaid leave days will be added while calculating gratuity. 

Let’s now discuss different methods you can use to calculate your UAE gratuity as per above explained criteria. 

How to Calculate Gratuity in UAE: Online Methods

For those who prefer manual calculations, here’s a step-by-step guide:

• Determine Your Daily Wage: Divide your basic monthly salary by 30.
  Example: If your basic salary is 8,000 AED, your daily wage is 8,000 ÷ 30 = 266.67 AED.
• Calculate Gratuity for Each Year:
  For the first five years: Multiply your daily wage by 21.
• For years beyond five: Multiply your daily wage by 30.
  Combine the Results: Add gratuity amounts for all years of service.

Since most people find it challenging to calculate gratuity manually, several online tools have been introduced in the UAE that employees can use to find out their applicable gratuity amount. You just have to enter your contract details, basic salary amount, and employment dates, and these tools will automatically calculate your gratuity for you. 

Here, we’ve illustrated two such online methods that you can quickly use to determine your UAE gratuity. Keep in mind that the calculated figures shown are estimates, and the actual amounts may differ as per your individual employment circumstances. 

Through the DDA Website:

Dubai Development Authority (DDA) features an online gratuity tool for UAE employees that calculates gratuity based on recent UAE Labor Law. Here’s how you can use it. 

1. Open the DDA’s gratuity calculator.
2. Write your work dates and basic salary amount and click on the calculate button. Your estimated gratuity figure will appear on the right.

Through MOHRE App:

It’s an official app of the UAE’s Ministry of Human Resources and Emiratisation (MOHRE), which provides a range of services and information on labor and employment matters in the UAE. Here’s how you can use this App to determine your final gratuity. 

1. Install the Mohre Application:

Apple App Store

Google Play Store

1. Open the App and sign in using your UAE Pass Account Details. 
2. Navigate to the End of Service Calculator button and click on it. 
3. You can find it by clicking on the show all button on the top right and then going to the employee section or by pressing the red circle button with four dots on the bottom of the app home page: 
4. Fill in your employment details, including your contract type, starting and ending work date, the reason for ending services, and basic income details, and hit the calculate button. 
5. Your estimated gratuity amount will appear in the results. Because it’s the official App of the human resource ministry, it’s considered the most accurate online method of how to calculate gratuity in UAE. 

How to Calculate Gratuity in UAE: Manual Method

Previously, the gratuity calculations in UAE were different for limited and unlimited contract types. However, as per the recent amendments to the UAE Labor law, employees on unlimited/indefinite contracts will be shifted to three-year renewable limited agreements.

That means the gratuity calculations will remain the same and won’t be affected by the contract type anymore. Keep in mind that the gratuity amount to be received depends entirely on number of service days of employees. 

Here’s how you can manually calculate gratuity under different limited contract types in the UAE. 

As discussed above, to calculate the gratuity, you need to know your monthly basic pay and the duration of the service period. Let’s consider a hypothetical salary to help you understand it better. 

Suppose you had a monthly basic salary of 8000 AED when you left the company. Your gratuity will be calculated in the following steps. 

First, you’ll determine your daily wage/per-day basic salary. 

You can find your per-day basic salary by simply dividing your total monthly basic pay by the number of days in a month. 

Per Day Salary = Basic monthly Salary/Days per month 

As per this example, it would be 266.67 AED. (Per Day Basic Salary = 8000/30 = 266.67 AED)

Next, you’ll multiply your per day salary with either 21 or 30 (depending upon the year number for which you’re calculating gratuity. If it is between 1 and 5 years, you’ll use 21; if it’s after the 6th year; and above, you’ll use 30). 

The resulting amount would be your entitled gratuity for each service year. 

Example: 

Here’s how to calculate gratuity in UAE manually as per the current example of 8000AED basic salary:

For the First Five Years:

Suppose you’ve completed one working year. Then, your gratuity will be 

Gratuity = (Per Day basic salary *21)

Gratuity= (266.67*21)

Gratuity= 5600 AED 

This amount represents your gratuity amount for one service year. And it will be the same for every service year until the first five years of employment.  

If you have completed two years, you’ll multiply it by 2 to determine the total gratuity for 2 years. (5600*2 = 11200 AED), With 3 to determine the total gratuity for 3 years (5600*3 = 16,800 AED), with 4 to determine the total gratuity of the first 4 years (5600*4 = 24,000 AED) and 5 to determine the total gratuity for the first 5 years (5600*5 = 28,000AED). 

For 6th and Subsequent Years:

Starting from the 6th service year, the UAE gratuity calculation will change slightly as it will be based on 30 days of basic salary. Following the example of 8000AED basic salary, below is how to calculate gratuity in UAE:

Gratuity = (Per Day basic salary *30)

Gratuity= (266.67*30)

Gratuity= 8,000 AED 

This figure represents your gratuity amount for the sixth year. And your gratuity for each year after the 6th will also be the same, i.e., 8,000 AED. The total gratuity for the 6th and 7th years will be 8000*2/8000+8000= 16,000, and for the 6th,7th, and 8th years would be 8000*3/ 8000+8000+8000 = 24000, and so on. 

Now, let’s combine the data to find gratuity for different serving periods using the same basic salary of 8000AED. 

But how to calculate gratuity in UAE if your experience is not in whole years and include different number of months like 2 years and 2 months, 6 years and 3 months?

Let’s consider some examples using the same basic salary of 8000 AED.

Example 1: How to Calculate Gratuity in UAE for 2 Years 3 Months:

As per the above calculation with an 8000AED basic salary, the gratuity of each service year for the first five employment years is 5600 AED.

Total Gratuity for 2 years 3 months = first year gratuity amount+ second year gratuity amount+ 3 months gratuity amount

Total Gratuity for 2 years 3 months = 5600 + 5600 + 3 months gratuity amount

Now, to find the gratuity for 3 months, you’ll first have to determine gratuity per day and then multiply it by the number of days (90 for 3 months).

You can find the gratuity per day using the one-year gratuity amount as follows:

Gratuity for one year of service = 5600 AED

Assuming 30 days each month, the total number of days per year will be 360. So,

Gratuity for one year of service = Gratuity for 360 days of service= 5600 AED

Gratuity for 1 Day of service = 5600/360=15.50 

So, Per Day Gratuity will be 15.50 AED for the first five years of the service period.

Now multiply it by the number of days in 3 months to get the gratuity of 3 months. 

Gratuity for 3 months of service= Gratuity for 90 days of service= 15.50*90

Gratuity for 3 months of service= 1395

So, the total gratuity for an employee with a service period of 2 years and 3 months under an 8000 AED basic salary would be 

Total Gratuity for 2 years 3 months = 5600 + 5600 + 3 months gratuity amount 

Total Gratuity for 2 years 3 months = 5600 + 5600 + 1395 

Total Gratuity for 2 years 3 months = 12,595 AED

You can follow this same example of how to calculate gratuity in UAE for finding the gratuity amount for any length of work during the first five years. 

Example 2: How to Calculate Gratuity in UAE for 6 Years 1 Month:

Considering the basic salary amount of 8000AED from the above examples. 

Total Gratuity for 6 years 1 months = first year gratuity + second year gratuity + third year gratuity + fourth year gratuity + fifth year gratuity + 6th year gratuity+ 1 month gratuity 

Total Gratuity for 6 years 1 months = 5600 + 5600+5600 + 5600+5600 + 8000 + 1 month gratuity 

Note that We’ve included gratuity for the 6th year as per 30 days basic salary. That’s why it is different from the first five years of gratuity, which are calculated using 21 days of basic pay.

Now, to calculate the 1-month gratuity amount for the 7th year, we’ll do the same. Finding gratuity per day and multiplying it by the number of days (30 for 1 month). However, since it comes under the 7th year of service, we’ll use the yearly gratuity amount as per 30 days. 

Gratuity for one year of service = 8000 AED

Assuming 30 days each month, the total number of days per year will be 360, So, 

Gratuity for one year of service = Gratuity for 360 days of service= 8000 AED

Gratuity for 1 Day of service = 8000/360=22.22 

So, Per Day Gratuity will be 22.22 AED after five years of service period. 

Now multiply it by the number of days in 1 month to get the gratuity of 1 month. 

Gratuity for 1 months of service= Gratuity for 30 days of service= 22.22*30

Gratuity for 1 month of service= 666

So, the total gratuity for an employee with a service period of 6 years and one month under an 8000 AED basic salary would be:

Total Gratuity for 6 years 1 months = 5600 + 5600+5600 + 5600+5600 + 8000 + 1 month gratuity 

Total Gratuity for 6 years 1 months = 5600 + 5600+5600 + 5600+5600 + 8000 + 666

Total Gratuity for 6 years 1 months = 36,666 AED

You can use a similar calculation method to find the gratuity amount for any number of years, days, or months in UAE. Just keep in mind that for the first five service years, you’ll use 21days basic salary amount, and for the 6th and next service years, you’ll use the 30-day basic salary amount. 

Other Financial Calculators in UAE

In addition to gratuity, employees and residents in the UAE often use various financial calculators for better financial planning. Here are some popular tools:

• Mortgage Calculator UAE: Helps you estimate monthly payments for home loans.
• Car Loan Calculator UAE: Calculates monthly installments for vehicle financing.
• Home Mortgage Calculator UAE: Provides detailed insights into home loan repayments.
• Loan Calculator UAE: Assists in determining repayment schedules for personal loans.
• EMI Calculator UAE: Calculates equated monthly installments for loans.
• Overtime Calculation in UAE: Determines additional pay for extra working hours.
• VAT Calculator UAE: Calculates value-added tax for goods and services.
• Leave Salary Calculation in UAE: Estimates the amount payable for unused leave days.

FAQs

What’s the easy method to check my UAE gratuity?

The easiest way to know your gratuity amount is to use online UAE gratuity calculating portals such as DDA and MOHRE. 

Is Gratuity Calculation in UAE Different for Limited and Unlimited Contracts?

No, it’s the same for all sorts of contracts in general and is determined based on the same fundamental factors, including basic pay and duration of work. 

What’s the Maximum Gratuity Amount an Employee Can Get in Uae?

According to the labor law of UAE, an employee can receive a maximum gratuity equal to the total of his two years of base pay at the company. It cannot exceed this figure no matter how many service years are increased. 

How Do I Calculate My Gratuity as an Employee in UAE?

You can find the gratuity amount by using any of the online or manual methods of how to calculate gratuity in UAE, as discussed above in this blog. You need to know your recent basic pay amount and total number of work years for these calculations. 

Are Online Gratuity Calculators Accurate?

These tools give you a general estimate of your entitled gratuity. Although accurate, the calculated amounts may differ as per your employment circumstances or any law changes by the official Ministry of Human Resources and Emirisation of UAE. 

What Things Are Considered for Gratuity Calculations in UAE?

The length of the working period of the employee and his last basic pay are the main factors for his gratuity estimation in UAE. The reason for leaving employment, such as resignation or termination, is also considered. 

Conclusion

The UAE government ensures fair compensation for employees through its gratuity laws. Whether you’re using the end of service calculator UAE or manual methods, understanding your gratuity entitlement is essential. Additionally, tools like the mortgage calculator UAE, car loan calculator UAE, and VAT calculator UAE can help you manage your finances effectively.

We hope this guide has clarified how to calculate gratuity in UAE and introduced you to other useful financial calculators. Always double-check your gratuity figures to ensure accuracy and compliance with UAE labor laws.