Under the Federal Decree-Law No. 33 of 2021, employees who have crossed at least one year in a company are eligible for Gratuity. It is the end-of-service payment that employees receive when they leave a job. Gratuity is calculated for full-time workers on their basic wage. The exact amount depends on how long the employee has worked. Our UAE gratuity calculator helps you get a clear estimate. The calculator will give you a clearer picture of what you may be entitled to at the end of your employment.
Your Basic Salary: AED 0.00
Employment Period: 0 year 0 months and 0 days
| # | From | To | Days | Gratuity (AED) |
|---|---|---|---|---|
| 1 | dd/mm/yyyy | Invalid Date | 365 | 0.00 |
| 2 | Invalid Date | dd/mm/yyyy | 0 | 0.00 |
Total Gratuity You Should Receive: AED 0.00
The gratuity calculation does not begin with the total salary. It begins with the basic salary mentioned in the employment contract or salary structure.
If the employee has completed less than one year of continuous service, gratuity is not payable to that person. If one employee has completed one year or more, then the calculation starts. You can't count unpaid leave days as part of the process.
For the first five years of service, gratuity is calculated at 21 days of basic wage for each year. For every year after the first five years, it is calculated at 30 days of basic wage for each additional year.
Start with the service period. If the employee has completed one year or more of continuous service with the employer, gratuity will apply. If the service period is below one year, gratuity is not payable.
Take the employee's last basic salary. Do not include housing allowance, transport allowance, commission, bonus, overtime, or other benefits. This is the part many employees miss because the bank salary feels like the “real salary,” but gratuity follows the basic wage.
The daily basic wage is used to calculate the 21-day and 30-day amounts. For a monthly-paid employee, the usual calculator method is to divide the monthly basic salary by 30.
For each year within the first five years of service, calculate 21 days of basic wage. Multiply your daily basic salary by 21 and the number of the eligible years.
After the first five years, calculate 30 days of basic wage for every year. Multiply your daily basic wage by 30 and the number of years after five years.
Add the gratuity for the first five years and the gratuity for the years after five together.
Days of absence without pay are not included in the service period. The employer may also deduct amounts that are legally due, where allowed by law or judgment.
This is why our gratuity calculator is useful. It removes the small mistakes that usually happen when people rush the calculation, especially around basic salary, partial years, and unpaid leave.
Our UAE gratuity calculator gives you a quick estimate based on your basic salary and service period. It helps employees understand what they may receive.
