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Whether you’re resigning or being terminated, get an accurate calculation of your final gratuity pay—customized for your years of service, salary, and employment type.
Gratuity Calculator Formula
The UAE gratuity formula is based on your basic salary and years of service. For each of the first five years, you earn 21 days’ worth of basic salary per year. After five years, you earn 30 days per year. The total is capped at two years’ salary.
How to Calculate Gratuity
To calculate gratuity:
1. Take your last basic monthly salary.
2. Multiply it by 21 (or 30) days depending on your years of service.
3. Divide by 30 (to convert days to monthly value).
4. Multiply by the number of years you’ve worked.
Use a gratuity calculator to automate this.
Leave Encashment Calculator
Leave encashment refers to unused paid leave. To calculate it:
• (Basic salary ÷ 30 days) × number of unused leave days.
It’s usually paid when leaving the company, along with gratuity.
Retirement Age in UAE
The standard retirement age in the UAE is 60 years for expats and UAE nationals. However, work permits can be renewed until the age of 65 or more, based on employer request and MOHRE approval.
What Is Gratuity in Salary?
Gratuity is a lump sum payment made by your employer when you leave the company, as long as you’ve worked for at least one year. It’s a legal end-of-service benefit, not part of your monthly salary.
FAQ
Gratuity is based on your basic salary and years of service. If you’ve worked over one year, you’re eligible. The formula depends on whether you resign or are terminated and your contract type (limited or unlimited).
Employees who have completed at least one year of continuous service under a valid UAE labour contract are entitled to gratuity.
If you resign before 5 years of service, you may receive a reduced gratuity. Terminated employees typically receive the full amount unless dismissed for misconduct.
Only your basic salary is considered—bonuses, allowances, and commissions are not included.
Yes, limited contracts usually provide higher gratuity if completed fully. Unlimited contracts have more flexible resignation terms but may offer less gratuity early on.
No. The gratuity calculator is meant to provide an estimate based on minimum terms under UAE Labour Law and DDA Free Zone Regulations. It serves as guidance only and has no legal value. Final entitlements may vary based on individual contracts or legal rulings.
Yes, and it’s recommended. Use an online gratuity calculator to get an estimate before making a decision.
