Free tool
UAE gratuity calculator (2026)
Short answer
Is your basic too low? Gratuity only counts basic pay.
Check your whole offer before you sign: the salary split, the package against the market, and every clause against UAE labour law.
How it's worked out
- Daily basic: AED 18,500 ÷ 30 = AED 616.67 ≈ ₹16,000
- Service: 5 years, or 5 years (1,826 days)
- Gratuity: AED 616.67 × 21 days × 5 years = AED 64,750 ≈ ₹16.8 lakh
- Leave salary: AED 616.67 × 0 days = AED 0 ≈ ₹0
Mainland, free zones and the DIFC
Most jobs in Dubai, including those in most free zones such as Dubai Internet City, come under the federal labour law, and the calculator follows it. Your last basic salary is used, part of a final year counts in proportion, and unpaid leave doesn't count as service.
The leave salary here is for leave you haven't taken when the job ends, which is paid on basic salary. Leave you take while you're employed is paid on your full wage, basic plus allowances: see how leave salary is calculated.
The DIFC has its own employment law: no gratuity, but monthly payments into DEWS, at least 5.83% of your basic salary for the first 5 years and 8.33% after. ADGM in Abu Dhabi has its own rules as well.
General information, not legal advice. Your contract and the law decide what you're owed; if your employer disagrees, MOHRE (opens in a new tab) gives free advice and handles complaints.
Questions
How is gratuity calculated in the UAE?
Divide your monthly basic salary by 30 to get your daily basic wage. You get 21 days of it for each of your first 5 years and 30 days for each year after that; part years count in proportion once you've done 1 full year. The total can't be more than 2 years' wage, which only matters after more than 25 years with one employer.
Is the gratuity cap counted on basic salary or total salary?
On your total salary, as the law is worded. It says the gratuity is calculated on the basic wage, but that the total may not be more than 2 years' wage (Art. 51(6)), and it defines the wage as your basic salary plus allowances. The formula can't reach 2 years of basic until you've worked more than 25 years for one employer, so for most people the cap never applies. Past that point the calculator asks for your total salary; until you give it, it shows the least you're due, 2 years of basic. MOHRE's own pages repeat the law's words without an example, so if your employer caps you on basic, ask MOHRE.
How do I calculate my leave salary?
Multiply the annual leave days you haven't taken by your daily basic wage (your monthly basic divided by 30). Leave still owed when your job ends is paid on your basic salary, with your gratuity. Leave you take while you're employed is different: it's paid on your full wage, basic plus allowances. You earn 30 days of leave a year once you've worked a full year.
Is gratuity calculated on full salary?
No. Only your basic salary counts: housing, transport and other allowances don't. The same monthly pay with a smaller basic share means a smaller gratuity, which is why the split in your offer matters.
Is gratuity paid if I resign?
Yes. Under the current labour law (Federal Decree-Law 33 of 2021) the same formula applies whether you resign or are let go, once you've worked 1 year or more for the same employer.
How does DIFC differ?
DIFC employers don't pay a gratuity. They pay into DEWS, a workplace savings plan, every month: at least 5.83% of your basic salary for the first 5 years and 8.33% after that. Choose DIFC in the calculator to see the minimum paid in. ADGM in Abu Dhabi has its own rules too: see our gratuity guide.
When must gratuity be paid?
Within 14 days of the end of your contract, together with your last salary, leave salary and any other dues.
How is gratuity calculated in 2026?
With the formula above: the labour law hasn't changed it. This calculator uses the rules as we last checked them, in October 2026.