UAE Gratuity Calculator

1 AED = ₹25.63Reference rateUpdated 7 Nov 2026, 22:58 GST

Your UAE gratuity is 21 days of basic salary for each of your first five years of service and 30 days of basic salary for each year after that, worked out on your last basic salary only — and the calculator below applies exactly that rule, from Article 51 of Federal Decree-Law No. 33 of 2021. Enter your basic salary and your service, and it will show your estimated end-of-service gratuity in dirhams. If you are also planning what this money becomes back home, our guide to end-of-service benefits in the UAE covers the full final settlement it sits inside.

How the calculator works

The calculator follows the standard mainland private-sector formula in four steps. First, it divides your monthly basic salary by 30 to get a day of basic pay. Second, it counts your service: 21 gratuity days for each year in the first five, and 30 gratuity days for each year beyond five, with part-years counted pro-rata once you have completed one full year. Third, it deducts any days of unpaid absence you enter, because unpaid leave does not count as service under the law. Fourth, it applies the legal ceiling: the total can never exceed two years’ wage.

One worked example, so you can check the tool by hand. Take a basic salary of AED 10,000 and exactly seven years of service. The first five years earn 105 days (5 × 21); the next two years earn 60 days (2 × 30); that is 165 days in total. A day of basic pay is AED 10,000 divided by 30, so 165 days gives a gratuity of AED 55,000 — in rupees at today’s reference rate, AED 55,000 (≈ ₹14,09,700). Run the same numbers in the calculator above and you should see the same result.

What to enter: basic salary only

The single most common gratuity mistake is entering your full salary package. Gratuity is calculated on basic salary alone — the figure labelled “basic” in your employment contract. Housing allowance, transport allowance, phone allowance, bonuses, overtime and commission are all excluded, however large a share of your package they are. Two employees with the same total package can have very different gratuities if one contract is weighted towards basic salary and the other towards allowances. If you are negotiating a new contract in the UAE, that split matters more than most people realise — it quietly sets the size of this payment years later. For the wider pay picture, see our analysis of the average salary in Dubai.

Who this calculator covers — and who it does not

This tool covers full-time private-sector employees on the UAE mainland and in free zones that follow the federal labour law — the majority of Indian employees in the UAE. You become entitled after one year of continuous service; below one year, the correct answer is zero, and the calculator will tell you so. Two important exceptions are signposted, not calculated here: employees of DIFC employers fall under the DIFC’s own employment law and its workplace savings system (DEWS), and ADGM employers follow ADGM employment regulations — if your contract is with a DIFC or ADGM entity, your end-of-service benefit works differently and this estimate does not apply. Emirati employees are covered by the pension system rather than this gratuity. The full rule-by-rule explanation, including the cases this page only signposts, is in how UAE gratuity is calculated.

Resigning, part-years and when you get paid

Three facts that older guides still get wrong. First, resigning does not reduce your gratuity under the current law — the reductions that existed under the pre-2022 law were abolished when Federal Decree-Law No. 33 of 2021 came into force, so the estimate above is the same whether you resign or your contract ends. Second, part-years count: once you pass one year, an extra few months add a pro-rata amount, which the calculator handles when you enter years and months. Third, timing: your employer must pay your wages and all end-of-service entitlements, gratuity included, within 14 days of your contract ending — that deadline is in Article 53 of the same law.

Frequently asked questions

How much gratuity do I get for my basic salary and years of service?

Enter both in the calculator above. The formula is: basic salary divided by 30, multiplied by 21 days for each of the first five years and 30 days for each year after that, capped at two years’ wage.

Why is gratuity calculated on basic salary only?

Because Article 51 of Federal Decree-Law No. 33 of 2021 defines the entitlement by reference to the basic wage. Allowances and benefits on top of basic salary are excluded by law, not by employer choice.

If I resign, is my gratuity reduced?

No. Under the current law, in force since February 2022, resignation does not reduce gratuity. The old one-third and two-thirds reductions no longer exist.

How are part-years and unpaid leave treated?

Part-years count pro-rata once you have completed one year. Days of unpaid absence are excluded from your service period, which is why the calculator asks about them.

When must my employer pay my gratuity?

Within 14 days of your contract ending, together with your final wages and other entitlements, under Article 53.

Sources and method

Rules: Federal Decree-Law No. 33 of 2021, Articles 51 and 53, as published on the UAE Government portal (u.ae) end-of-service benefits page and in the Ministry of Human Resources and Emiratisation guidance reported by Gulf News on 22 October 2026. The calculator’s arithmetic was verified against worked cases before publication, including the AED 10,000 / seven-year example used on this page. Rupee figure: rendered live by this site’s FX tool from the stored reference rate. This tool gives an estimate for the standard federal case; it is information, not legal advice — for a disputed settlement, confirm with MOHRE or a UAE labour lawyer.