Gratuity Calculator UAE

Disclaimer

The gratuity calculator is only intended for guidance purposes and has no legal basis. The results generated from the above gratuity calculator are based on the most common employment circumstances under UAE Labour Laws. Kindly note only the gratuity part of final settlements is covered in the calculator and aspects such as unused leaves salary, notice compensation, air ticket, etc are not reflected here. For detailed interpretation and/or dispute regarding gratuity / end of service benefit (EOSB), please seek professional advice. Virtual Accountants LLC is not responsible for any errors or omissions.

Gratuity Calculator

Important factors for calculating gratuity:

1. Type of contract

2. Last basic salary

3. Duration of employment

How Gratuity Calculator Works

Calculating Gratuity For Unlimited Contract

Resignation

• resignation before 1 year of service, not entitled to any gratuity.
• resignation between 1 and 3 years of service, employee is entitled to one third of 21 days' basic salary for each year as gratuity for the period of employment.
• resignation between 3 and 5 years of service, employee is entitled to two-thirds of 21 days' basic salary for each year as gratuity for the period of employment.
• resignation after 5 years of service, employee is entitled to 21 days’ basic salary for first 5 years  of employment and 30 days' basic salary for each additional years. 

Termination

• termination before 1 year of service, employee is not entitled to any gratuity.
• termination between more than 1 year but less than 5 years of service, gratuity calculation to be done as 21 days' basic salary for each year of service.
• termination after more than 5 years of service, gratuity calculation to be done as 30 days' basic salary for each year of service after first 5 years and 21 days’ basic salary for the first five years.
• Total gratuity should not exceed two-year basic salary.

Calculating Gratuity For Limited Contract

• Period of employment less than 1 year, employee is not entitled to any gratuity.
• Period of employment between 1 year to 5 years, employee is entitled to gratuity based on 21 days' salary for each year of work.
• Period of service more than 5 years, employee is entitled to gratuity of 30 days' salary for each year of work after first 5 years plus 21 days’ basic salary for each year for first 5 years.
• Total gratuity should not exceed two-year of basic salary.