🇦🇪 UAE end-of-service gratuity calculator

UAE gratuity is 21 days of your basic salary per year for the first five years, then 30 days per year beyond, payable after one year.

✓ Verified against 4 self-test cases Updated for 2026 · sources checked 2026-08-02

How gratuity in United Arab Emirates is calculated

The UAE levies no personal income tax, so take-home equals gross for expatriate employees. The high-intent calculation is the end-of-service gratuity paid when a contract ends.

Gratuity is 21 days of basic salary (not total pay) for each of the first five years, then 30 days per year beyond, pro-rated for part years and payable after at least one year of service. The total is capped by law at two years' wage, which starts to bite at around 25.5 years of service. Use the basic salary figure, the single most common error. Estimate, not legal advice.

Worked example

G1 basic 10,000 AED, 3 years
basicMonthly10000
years3
gratuity21000

Frequently asked questions

How much gratuity for 3 years at 10,000 AED basic?

That is 21 days per year for three years on a daily wage of basic/30, which comes to 21,000 AED.

Is gratuity based on basic or total salary?

On the basic salary only, not allowances or total pay — the most common mistake in DIY calculations.

Do I get gratuity under one year?

No — the entitlement begins after one full year of service.

Sources

Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 4 self-test cases; the sources support that the formula matches the rules.

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