UAE end-of-service gratuity calculator
Work out the end-of-service gratuity an employee in the UAE private sector is owed, from basic salary and length of service.
Gratuity
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How gratuity is calculated
- Who qualifies: employees with at least one year of continuous service. Partial years after the first count pro rata.
- First five years: 21 days of basic salary for each year.
- After five years: 30 days of basic salary for each further year.
- Daily wage: monthly basic salary ÷ 30.
- Cap: the total cannot exceed 24 months (two years) of basic salary.
- Exceptions: gratuity can be lost on dismissal for gross misconduct. Free-zone rules (DIFC, ADGM) and government employees follow different schemes.
Worked examples
| Basic salary | Service | Gratuity |
|---|---|---|
| AED 8,000 | 2 years | AED 11,200 |
| AED 5,000 | 3 years 8 months | AED 12,833 |
| AED 5,000 | 6 years 4 months | AED 24,167 |
| AED 25,000 | 12 years | AED 262,500 |
Sources: Zoho Payroll Academy: UAE gratuity by tenure (Article 51) · Khaleej Times: gratuity when salary changes. An estimate for planning; MOHRE or the courts decide disputes.
Track gratuity for the whole team
UAE payroll software accrues gratuity every month and produces WPS salary files. See the best payroll software in the UAE.