Gratuity Calculator UAE 2025: Updated with MOHRE

Do you want to calculate your UAE gratuity? Well, you’re at the right place. This guide features a gratuity calculator for all UAE employees, helping you determine the amount of your end-of-service pay. Learn how to calculate gratuity in the UAE according to the latest updates by the MOHRE, including eligibility requirements and other affecting factors. 

Gratuity Calculator UAE

Calculate your UAE gratuity easily online based on the latest labor law updates. Use our free gratuity calculator to estimate your end-of-service benefits quickly and accurately:

What is gratuity in the UAE? 

In the UAE, gratuity is an end-of-service payment received by every employee after the end of their work contract. The payment amount varies by employee, as it is determined by several factors such as employee salary, years of service, types of work contract, etc. In the UAE, gratuity is mandatory for all employees, providing financial support after they leave their job, as per MoHRE regulations.

How to Use a UAE Gratuity Calculator

Here’s how to calculate your gratuity using the UAE gratuity calculator:

• Open the calculator.
• Under “First Working Day”, input the day of work resumption according to the work contract.
• Under “Last Working Day” Enter the day of work conclusion according to the resignation document.
• Click the “Calculate” Button.

Your gratuity will be displayed to you according to your inputs. 

How to Calculate Gratuity in the UAE

Here’s how to calculate gratuity in the UAE:

• Determine daily wage: Divide the monthly basic salary by 30. For example, if the basic salary is AED 15,000:
  •  Daily wage = AED 15,000 ÷ 30 = AED 500
• Calculate gratuity for first 1 to 5 years: For the first 1 to 5 years, calculate gratuity per year by multiplying the daily wage by 21. That is:
  • Gratuity = (Daily wage × 21) × Number of years. 
• Calculate gratuity for service beyond 5 years: Multiply the daily wage by 30 for each additional year of service. That is:
  • Gratuity = (Daily wage × 30) × Number of additional years.
• Calculate total gratuity: Gratuity for first 5 years + Gratuity for additional years = Total gratuity. 

How to Calculate Gratuity of Part-Time Employees

Here’s how to calculate the gratuity of a part-time employee in the UAE:

• Calculate the Work Ratio: (Actual hours ÷ Full-time hours) × 100 = Work ratio. For example, if a part-time employee works 20 hours per week, and a full-time schedule is 40 hours per week:

• • • Work ratio = (20 ÷ 40) × 100 = 50%.
  • Calculate gratuity for first 1 to 5 years: For the first 1 to 5 years, calculate gratuity per year by multiplying the daily wage by 21. That is:
    • Gratuity = (Daily wage × 21) × Number of years. 
  • Calculate gratuity for service beyond 5 years: Multiply the daily wage by 30 for each additional year of service. That is:
    • Gratuity = (Daily wage × 30) × Number of additional years.

• Calculate full-time total gratuity: Gratuity for first 5 years + Gratuity for additional years = Total full-time gratuity. 

• Calculate part-time gratuity: Full time gratuity × (work ratio ÷ 100). For example, if the full time gratuity is AED 50,000 and work ratio is 50, then part time gratuity:
  • 50,000 × (50 ÷ 100) = 25,000. In this case, the gratuity for part time employees is AED 25,000.

UAE Gratuity Calculation Example

Let’s calculate the gratuity of Mr. Ahmed, who earns a basic salary of AED 12,000 and completed 7 years of service starting from January 1, 2018, to January 1, 2025:

• Daily wage: Basic monthly salary ÷ 30 
  • 12,000 ÷ 30 = AED 400
• Gratuity for first 5 years: (Daily wage × 21) × 5 
  • (400 × 21) × 5 = AED 42,000
• Gratuity for remaining years: (Daily wage × 30) × 2
  • (400 × 30) × 2 = AED 24,000 
• Total gratuity: Gratuity for first 5 years + Gratuity for remaining years
  • 42,000 + 24,000 = AED 66,000

Eligibility Criteria for Gratuity in the UAE

The following conditions and factors determine eligibility for gratuity in the UAE:

• Only employees who have completed at least one year of continuous service to the same employer are eligible for gratuity.
• Employees with less than one year of service are not eligible for gratuity. 
• Full-time expatriate employees in the private sector are entitled to gratuity provisions. 
• Citizens of the UAE are not eligible for gratuity, as they are covered under the national pension program. 
• Employees dismissed for gross misconduct may not be eligible for gratuity rewards. 
• Employees who resign or are sacked (not due to misconduct) after completing one year of service are entitled to gratuity.
• The total gratuity should not exceed two years’ worth of basic salary.​
• Gratuity is calculated based on your last drawn basic salary, excluding allowances like housing, transportation, or commissions.

Latest MoHRE Updates on Gratuity

Below are the latest guidelines by the Ministry of Human Resources and Emiratisation (MoHRE) guiding gratuity rewards in the UAE:

• Inclusion of Part-Time and Temporary Employees: Part-time and temporary employees are now eligible for gratuity payments in the UAE. In this case, the gratuity calculation is based on their working hours relative to full-time hours.
• Exclusion of Unpaid Leave Days: Unpaid leave days are no longer used in the calculation of gratuity in the UAE.
• Mandatory Payment Deadline: UAE labor laws now require employers to pay gratuity within 14 days of the employee’s leave. Failure to comply may result in legal penalties and fines.​
• Optional Savings Scheme: Employees can now choose to invest their gratuity in a savings scheme while still working.
• Transition to Limited Contracts: UAE labor laws no longer allow unlimited (open-ended) employment contracts, mandating a shift to limited contracts only. The contract shall only be valid for 3 years, after which it can be mutually renewed. 

Conclusion

Every expatriate in the UAE is entitled to a gratuity, as long as they complete one year of service to a particular employer. Ensure you adhere to your work contract terms and follow the due resignation process to avoid issues with receiving gratuity.