UAE Labour Law Formula
21 days per year for the first 5 years, then 30 days per year after that. Maximum payout is 2 years of wages.
FREE CALCULATOR
UAE Gratuity Calculator 2026
Enter your basic monthly salary and total years of service to instantly calculate your end-of-service gratuity under UAE Labour Law.
UAE Gratuity Calculator 2026
* This tool is for informational purposes only. Consult a professional for definitive calculations.
How It Works
Contract Type Matters
Limited and unlimited contracts have different rules for early resignation. This calculator shows full entitlement.
2026 Updates
UAE's new labour law continues to protect end-of-service benefits. Optional savings schemes may supplement gratuity.
| Service Period | Days per Year |
|---|---|
| First 5 Years | 21 days |
| After 5 Years | 30 days |
| Maximum Cap | 2 years (730 days) |
| Tax Status | Tax-Free |
Frequently Asked Questions
How is UAE gratuity calculated?
Under UAE Labour Law, employees are entitled to 21 days of basic salary for each of the first 5 years, and 30 days for each additional year. The total cannot exceed 2 years' worth of wages.
What is the difference between limited and unlimited contracts for gratuity?
Under limited contracts, if you resign before completing 5 years, you may lose gratuity rights. Under unlimited contracts, you are entitled to a reduced gratuity (1/3 for 1-3 years, 2/3 for 3-5 years). Our calculator assumes full entitlement.
What counts as 'basic salary' for UAE gratuity?
Basic salary is the amount specified in your employment contract, excluding allowances such as housing, transport, and other benefits. It is typically 50-60% of your total package.
Who is eligible for UAE end-of-service benefits?
All employees who have completed at least 1 year of continuous service are eligible. This applies to both UAE nationals and expatriates working in the mainland (not free zones with their own regulations).
Is gratuity taxable in the UAE?
No, UAE does not impose personal income tax. Gratuity payments are tax-free for employees. However, recent changes may apply to certain categories — consult an HR professional.
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