Online Gratuity Calculator UAE 2025 – Enter your Employment Details
Understanding how to use a Gratuity Calculator UAE is essential for employees working in the Emirates, especially when planning their future or concluding their employment.
In the UAE, gratuity (مكافأة نهاية الخدمة) is a mandatory payment that employers must provide to employees upon completion of their service. Whether you’re based in Dubai, Abu Dhabi, or Sharjah, calculating your gratuity correctly ensures that you receive all end-of-service benefits rightfully owed under the UAE Labour Law.
Calculating gratuity manually can be complex, which is why using a UAE Gratuity calculator 2025 is highly recommended. I will show you how gratuity is calculated under different contracts and how you can utilize online tools, such as the MOHRE gratuity calculator in the UAE, to make the process stress-free.
What Is Gratuity in the UAE?
Gratuity (Arabic: مكافأة نهاية الخدمة) is a lump sum payment made by the employer to an employee who has completed at least one year of service in the UAE. This end-of-service benefit is governed by the UAE Labour Law and varies depending on factors such as:
- The type of employment contract (limited or unlimited)
- The reason for job separation (resignation, termination, end of service etc.)
- The number of years served
- The basic salary of the employee
How Does the UAE Gratuity Calculator Work?
Using a UAE gratuity calculator online is much easier than calculating manually. A typical online gratuity calculator requires the following.
- Basic salary – (excluding allowances)
- Total years of service – (by providing start and end date of service)
- Contract type – (limited or unlimited)
- Reason for leaving – (resignation/end of service or termination)
Why Use a Gratuity Calculator?
- Accuracy – Avoid manual errors.
- Speed – Get instant results.
- Transparency – Understand how your final settlement UAE calculation is derived.
Popular Online Calculators
- MOHRE gratuity calculator UAE (official)
- DDA gratuity calculator (for Dubai Development Authority employees)
- Free zone gratuity calculation UAE tools
- UAE gratuity calculator online
Key Factors Affecting Gratuity Calculation
1. UAE Gratuity Law (2025 Updates)
Under Article 51 of the UAE Labour Law, employees are entitled to gratuity after 1+ year of service. Key rules:
- Limited contract: Fixed-term employment.
- Unlimited contract: No fixed end date.
- New UAE Labour Law amendments (if any for 2025).
2. Basic Salary vs. Total Salary
- Gratuity is based on basic salary (not housing, transport, or other allowances).
- Example: If your basic salary is AED 10,000 (total salary AED 15,000), calculations use AED 10,000.
3. Resignation vs. Termination
| Scenario | Gratuity Eligibility |
|---|---|
| Resignation before 1 year | No gratuity |
| Resignation after 1 year | Reduced gratuity (⅓ or ⅔ of 21 days) |
| Termination (non-misconduct) | Full gratuity as per tenure |
Step-by-Step UAE Gratuity Calculation
A. Limited Contract Gratuity
| Service Duration | Calculation Formula |
|---|---|
| 1–5 years | (Basic salary × 21 days × service years) ÷ 30 |
| 5+ years | (Basic salary × 30 days × service years) ÷ 30 |
Example:
- Basic Salary: AED 10,000
- Service: 3 years
- Calculation: (10,000 × 21 × 3) ÷ 30 = AED 21,000
B. Unlimited Contract Gratuity
If You Resign:
- 1–3 years: ⅓ of 21 days’ salary/year
- 3–5 years: ⅔ of 21 days’ salary/year
- 5+ years: 21 days (first 5) + 30 days (after 5)
If Terminated:
- 1–5 years: 21 days/year
- 5+ years: 21 days (first 5) + 30 days (after 5)
Example:
- Basic Salary: AED 12,000
- Service: 6 years (resigned)
- Calculation:
- First 5 years: (12,000 × 21 × 5) ÷ 30 = AED 42,000
- 6th year: (12,000 × 30 × 1) ÷ 30 = AED 12,000
- Total = AED 54,000
Free Zone Gratuity Rules
Some free zones (like DIFC, ADGM) have unique rules.
- DIFC: 21 days/year for first 5 years, 30 days after.
- ADGM: Similar to UAE Labour Law but may differ in notice periods.
Use a free zone gratuity calculator UAE for precise estimates.
Key Considerations Before You Calculate
To get the most accurate estimate using a gratuity calculator Dubai, gratuity calculator Abu Dhabi, or gratuity calculator Sharjah, make sure you.
- Work at least 1 full year (minimum eligibility)
- Use your basic salary (not total salary)
- Know your exact joining and leaving dates
- Understand whether you had a limited or unlimited contract
- Clearly identify whether you resigned or were terminated
Who Should Use the UAE Gratuity Calculator?
- Private sector employees
- Free zone employees (free zone gratuity calculation UAE may vary slightly)
- Expats planning to resign or leave the UAE
- Employees unsure of their entitlements
- HR professionals doing payroll calculations
- Those looking for MOHRE gratuity calculator or MOHRE gratuity calculator UAE tools
Gratuity Calculator UAE 2025 Table Overview
| Criteria | Gratuity Entitlement |
|---|---|
| < 1 year | No gratuity |
| 1–3 years (resignation) | 1/3 of 21 days’ salary/year |
| 3–5 years (resignation) | 2/3 of 21 days’ salary/year |
| > 5 years (resignation) | 21 days for first 5 years + 30 days after |
| Termination < 1 year | No gratuity |
| Termination > 5 years | Full gratuity as per service duration |
How to Use the MOHRE Gratuity Calculator UAE
- Visit the MOHRE website.
- Enter:
- Basic salary
- Employment dates
- Contract type
- Get your gratuity estimate instantly.
UAE Gratuity Law: What You Should Know
The UAE labor law gratuity calculation has recently been updated. The new UAE labour law gratuity calculation offers better clarity for both employers and employees. Article 51 and Article 139 highlight:
- Employees must complete 1 year of service to be eligible
- Gratuity can be denied if an employee resigns without notice
- Termination for misconduct also disqualifies employees from receiving gratuity
For those under ministry of labour UAE gratuity calculation limited contract, the rules remain stricter than unlimited contracts.
Gratuity Calculation in UAE in Case of Termination
If you’re terminated.
- After 1 year but before 5 years: 21 days’ salary/year
- After 5 years: 21 days for first 5 years + 30 days/year after
- You may lose your gratuity if you’re terminated for cause or resign improperly
Knowing the gratuity calculation in UAE in case of termination helps avoid surprises.
Leave Salary and Gratuity Calculation in UAE
Many employees also ask about leave salary and gratuity calculation in UAE. These are separate payments:
- Leave salary = Unused annual leave × daily salary
- Gratuity = Based on service years and contract type
Use calculators that include both, or consult with HR.
Tips to Secure Your Gratuity Rights
- Understand your employment contract from day one
- Know your legal rights under UAE Labour Law
- Keep detailed employment records like salary slips and contracts
- Discuss concerns openly with your employer
- Seek legal advice if you’re unsure about your entitlements
Final Verdict
The UAE gratuity calculator 2025 is your go-to tool for quick and accurate calculations. Whether you’re using a gratuity calculator Dubai, gratuity calculator Abu Dhabi, or gratuity calculator Sharjah, knowing your rights under the UAE Labor Law is essential. Take control of your end-of-service benefits by using reliable online tools and understanding the rules that apply to your situation.
If you’re unsure, use a trusted online gratuity calculator or consult legal professionals to secure what you’ve earned over your years of service.
You can also find your Chronological Age from our website.