If you’re working in the UAE, you might have heard about “end-of-service benefits” — often referred to as a gratuity. It’s a lump-sum payment you receive when your employment ends, and it’s an important financial right for employees under UAE Labour Law.
But figuring out exactly how much gratuity you’re entitled to can feel a little confusing. That’s where a gratuity calculator comes in handy!
In this post, we’ll walk you through how to use a gratuity calculator in the UAE, and what you need to know to get an accurate result.
What Is a Gratuity Calculator?
A gratuity calculator is a tool that helps you quickly estimate the amount you should receive at the end of your service, based on UAE labor laws. It factors in things like:
- Your basic salary
- How many years you worked
- The type of contract you had (limited or unlimited)
- Reason for leaving the job (resignation or termination)
Most online calculators are free and simple to use — you just plug in your details and get an instant estimate!
What You Need Before Using a Gratuity Calculator
Before you start, gather the following information:
- Your basic monthly salary (without including bonuses, commissions, or allowances)
- Your start date and end date of employment
- Type of contract (Limited or Unlimited)
- Reason for leaving (Did you resign? Were you terminated?)
Knowing these details ensures the calculation is accurate.
Step-by-Step: How to Use a UAE Gratuity Calculator
Here’s a simple guide to using most UAE gratuity calculators:
1. Choose a Reliable Gratuity Calculator
Search online for “UAE gratuity calculator” and pick a trustworthy one. Many government websites, HR portals, or reputable legal sites provide them.
2. Enter Your Basic Salary
You’ll usually be asked for your basic monthly salary, not your total package. Only include your official basic pay.
3. Select Your Contract Type
- Limited Contract: Fixed-term contract with an end date.
- Unlimited Contract: Open-ended contract with no specific end date.
4. Input Your Employment Period
Enter the date you started and the date your employment ended (or will end).
5. Specify the Reason for Leaving
This matters because the calculation can change based on resignation versus termination.
6. Submit to Calculate
Once all details are entered, click “Calculate” — and you’ll get an estimated gratuity amount immediately.
Important Things to Keep in Mind
- Less than one year of service? You’re usually not entitled to gratuity pay.
- 1 to 3 years of service? You may get a reduced percentage of the full gratuity.
- More than 5 years of service? You’re entitled to full gratuity for the entire period.
- Deductions might apply if you resigned early under an unlimited contract.
Gratuity is calculated based on 21 days’ salary per year for the first five years, and 30 days’ salary per year thereafter — but only on your basic salary.
Final Tip
While online calculators are great for an estimate, it’s a smart idea to confirm the final amount with your company’s HR department or review your employment contract. In case of disputes, the UAE Ministry of Human Resources and Emiratization (MOHRE) can assist.
Wrapping Up
Using a gratuity calculator in the UAE makes it quick and easy to know what you’re owed. Just gather your basic salary, contract type, work dates, and reason for leaving — and you’ll have a clear idea in minutes. It’s a smart step to plan your financial future, especially when transitioning to a new job or moving out of the UAE.
