💰 UAE Gratuity Calculator

What is the End-of-Service Gratuity?

Gratuity is a monetary payment eligible to foreign employees in the UAE at the end of their service period. It serves as a thank-you for the service rendered and functions as a severance pay.

Eligibility Criteria

• You must have completed at least one year of continuous service.
• You are a foreign national (UAE nationals are eligible for pension schemes).
• You are not terminated for gross misconduct (under Article 44 of the Labor Law).

How Gratuity is Calculated

Gratuity is calculated based on your last drawn *basic salary*. Allowances such as housing, transport, and utilities are excluded from this calculation. This is why it is crucial to know your basic salary breakdown.

Calculation Rules (New Labor Law)

• Less than 1 year: No gratuity.
• 1 to 5 years: 21 days' basic salary for each year of service.
• More than 5 years: 30 days' basic salary for each year exceeding the first 5 years.
• Maximum Cap: The total gratuity cannot exceed two years' worth of total salary.

Resignation vs. Termination

Under the new UAE Labor Law (Federal Decree-Law No. 33 of 2021), the reduction of gratuity for resignation in limited contracts has been largely removed. Employees are generally entitled to full gratuity calculated on the basis above, provided they have completed one year of service, regardless of whether they resign or are terminated (unless for misconduct).