UAE Gratuity Calculator (2026 Guide for Expats)
If you are working in the UAE, your end-of-service gratuity is one of the most important financial benefits you will receive. This page helps you estimate your gratuity, understand the basic formula, and plan your finances before changing jobs or leaving the UAE.
UAE Gratuity Calculator
Note: This calculator provides an estimate using a commonly used UAE gratuity method for planning. Final amounts can vary based on contract details, termination reasons, and employer policy.
How UAE Gratuity Is Calculated
In the UAE, gratuity is typically calculated using your basic salary and your years of service. Gratuity is generally based on basic salary only, not total salary. Allowances like housing, transport, or food are often excluded.
Standard formula (general guideline)
- First 5 years: 21 days of basic salary per year
- After 5 years: 30 days of basic salary per year
Simple Gratuity Calculation Example
Example: Basic salary AED 8,000, service 4 years.
- Daily basic salary: 8,000 ÷ 30 = AED 266.67
- Gratuity days: 21 × 4 = 84 days
- Estimated gratuity: 84 × 266.67 ≈ AED 22,400
Example for Service Over 5 Years
Example: Basic salary AED 10,000, service 8 years.
- First 5 years: 21 × 5 = 105 days
- Next 3 years: 30 × 3 = 90 days
- Total: 195 days
- Daily salary: 10,000 ÷ 30 = 333.33
- Estimated gratuity: 195 × 333.33 ≈ AED 65,000
Frequently Asked Questions
Is gratuity calculated on total salary or basic salary?
Usually on basic salary only, not allowances.
Do I get gratuity if I resign?
In most cases, yes—if you meet eligibility rules. Final amount depends on contract and exit reason.
Is UAE gratuity taxable?
Generally not taxed in the UAE, but your home country rules may apply.