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Gratuity Calculator – End of Service

Quick answer

UAE gratuity = 21 days of basic pay per service year (first 5 yrs), 30 after: 4 years on a 10,000 basic salary earns 28,000 at exit.

Figures are estimates from this calculator’s standard formula — adjust the inputs in the tool below for your exact number.

How the Gratuity Calculator Calculates Results

Gratuity = (21 or 30 ÷ 30) × daily basic wage × years

End-of-service gratuity rewards completed years of service at termination. Under UAE labour law the first five years earn 21 days of basic wage each and later years 30 days, paid on the final basic salary. The calculation follows Gratuity = (21 or 30 ÷ 30) × daily basic wage × years. An employee earning 10,000 basic monthly with 4 completed years has a daily wage of 333.33 and gratuity of 21 × 333.33 × 4 ÷ 30 × 30... simplified: 7,000 per year × 4 = 28,000 at exit. The result updates instantly whenever you change an input, and every figure is shown in the same currency or units you entered, with no hidden conversion applied.

  1. 1

    Step 1

    Enter the required figures for the Gratuity Calculator in the fields above.

  2. 2

    Step 2

    The tool applies Gratuity = (21 or 30 ÷ 30) × daily basic wage × years to your numbers automatically.

  3. 3

    Step 3

    Read the result, shown in the same units you entered.

  4. 4

    Step 4

    Adjust the inputs to compare scenarios side by side.

Use Cases

Resignation planning

Estimating the exit payout before handing in notice

Contract comparison

Weighing a higher basic versus higher allowances offer

HR provisioning

Checking what a departing team member is owed

Negotiation check

Verifying the company's final settlement figure

Common Mistakes

  • Computing on gross salary

  • Rounding years wrongly

  • Missing the contract type nuance

FAQs

Is gratuity calculated on basic or gross salary?

Basic wage only under UAE law — allowances for housing and transport are excluded, which can cut the payout versus expectations built on gross.

What if I leave before one year?

Under the UAE federal law pattern, resigning under a year of unlimited-contract service pays no gratuity; one to five years earns the 21-day tier.

What is the math behind the Gratuity Calculator?

The Gratuity Calculator applies Gratuity = (21 or 30 ÷ 30) × daily basic wage × years, where daily wage = monthly basic ÷ 30, with 21 days per year up to five years and 30 beyond.

What units and currencies does it accept?

The Gratuity Calculator is unit-agnostic: enter amounts in any currency and rates as percentages, and the output follows your choice.