UAE Gratuity Calculator
End-of-service benefit, UAE law
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🇦🇪 UAE tip
Gratuity is calculated on basic salary only — not housing or transport allowances. The maximum entitlement is capped at 2 years' total wages (18 months under DIFC/ADGM).
The UAE Gratuity Calculator computes your end-of-service benefit under UAE Labour Law, DIFC, ADGM, or JAFZA — with a year-by-year breakdown, resignation vs. termination comparison, and support for unpaid leave deductions.
How is gratuity calculated?
For the first 5 years: 21 days of basic salary per year. For years beyond 5: 30 days per year. The total is capped at 2 years' basic salary under UAE Federal Law, or 18 months under DIFC/ADGM. Unpaid leave days are excluded from your service period.
Resigned vs. terminated: the key difference
Under UAE Labour Law, resigning before 5 years reduces your entitlement: 1/3 if you have 1–3 years of service, 2/3 for 3–5 years, and full amount after 5 years. If terminated by your employer, you always receive the full amount (after at least 1 year). DIFC and ADGM employees receive full gratuity regardless of resignation.
DIFC, ADGM, and JAFZA differences
DIFC and ADGM use English common law frameworks: no resignation reduction, but the cap is 18 months' basic salary rather than 24. JAFZA applies UAE Federal Labour Law. Use the framework selector in the calculator to instantly compare your entitlement under each regime.
Frequently asked questions
Is gratuity calculated on basic salary or gross salary?+
Gratuity is calculated on basic salary only — not on housing allowance, transport allowance, bonuses, or other benefits.
What if I resign before 5 years?+
Under UAE Labour Law, resigning before 1 year gives no gratuity. Between 1–3 years you receive 1/3 of the full entitlement; 3–5 years gives 2/3; beyond 5 years you receive the full amount. Under DIFC or ADGM law, there is no reduction for resignation at any tenure.
How do unpaid leave days affect gratuity?+
Days of unpaid leave are excluded from your effective service period. For example, if you worked for 3 years but had 60 days of unpaid leave, your effective service is approximately 2 years and 10 months, reducing your gratuity proportionally.
What is the maximum gratuity I can receive?+
Under UAE Federal Labour Law: the maximum is 24 months' basic salary (2 years). Under DIFC and ADGM employment laws: the cap is 18 months' basic salary.
Is gratuity taxable in the UAE?+
No. Gratuity payments are not subject to any tax in the UAE. The UAE has no personal income tax.
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UAE Gratuity Calculator
UAE Note
Gratuity is calculated on basic salary only — not housing or transport allowances. The maximum entitlement is capped at 2 years' total wages (18 months under DIFC/ADGM).
Disclaimer: This result is an estimate for informational purposes only. Actual figures may vary based on individual circumstances, company policy, and applicable UAE law. Consult a qualified professional before making any financial or legal decisions.
Generated by UAE Tools Hub · uaetoolshub.com · 14 June 2026