Gratuity calculator
21 days a year, then 30, capped at two years' wages — calculated on basic salary, not total. Enter the figures and see the accrual broken down.
How gratuity accrues
| Service period | Accrual |
|---|---|
| Less than 1 year | No gratuity entitlement |
| 1 to 5 years | 21 days of basic salary for each year |
| Beyond 5 years | 30 days of basic salary for each additional year |
| Overall cap | Total gratuity must not exceed two years' wages |
Daily basic = basic monthly salary ÷ 30First 5 years = daily basic × 21 × years (max 5)Beyond 5 years = daily basic × 30 × additional years
Whether you resigned or were terminated, your contract type, unpaid leave, and any free zone or scheme-specific rules — including employers enrolled in a savings scheme in place of end-of-service gratuity. Partial years are generally pro-rated. This calculator gives the standard accrual on basic salary; the entitlement in a specific case should be checked against the actual contract.
For employers, the accounting point is separate and more important: gratuity should be accrued monthly across the whole workforce, not recognised when someone leaves. A business that has never provided for it is reporting profits it has not made and carries an unrecorded liability. See payroll and gratuity.
Reviewed 18 August 2026 by Ahmed Nabil Selim. UAE tax rates, thresholds and deadlines change — confirm the position for your period before relying on it.
UAE End-of-Service Gratuity Calculator — frequently asked questions
On basic salary and length of continuous service. For most private-sector employees, gratuity accrues at 21 days of basic salary for each of the first five years and 30 days of basic salary for each year beyond five, with the total not exceeding two years' wages. The daily rate is basic monthly salary divided by 30 — allowances such as housing and transport are excluded from the calculation.
Under the current federal labour law, employees who complete at least one year of continuous service are generally entitled to gratuity whether they resign or are terminated — a change from the older regime, which reduced entitlement for resignation within certain service bands. Entitlement can still be affected by the reason for termination in defined circumstances, and by the terms of the contract, so the specific position should be checked rather than assumed.
On basic salary. Housing, transport, and other allowances are excluded, which is why the split between basic and allowances in an employment contract has a direct and often substantial effect on the eventual gratuity cost. The total wage figure matters only for the overall cap, which limits gratuity to two years' wages. For employers, this makes the basic-to-allowance ratio a real cost decision at the point of drafting, not an administrative detail.
Want the real number, not the estimate?
A calculator works from the figures you type in. We work from your actual records, your licence and your contracts — and tell you what to do about the answer.
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