UAE Gratuity Calculator 2026

UAE Gratuity Calculator 2026

The Talenzoa UAE Gratuity Calculator helps employees, employers and HR professionals estimate end of service gratuity for eligible private sector employees in the United Arab Emirates.

The calculation uses the employee's basic monthly salary, employment period and applicable gratuity days to provide an estimated end of service benefit. The calculator also allows unpaid absence to be taken into consideration when estimating the service period.

For the most accurate estimate, enter your last basic monthly wage rather than your total salary package.

How Is Gratuity Calculated in the UAE?

UAE end of service gratuity for eligible full time foreign employees in the private sector is generally calculated using the employee's last due basic wage and completed period of service.

Under Article 51 of Federal Decree Law No. 33 of 2021, an eligible employee who has completed at least one year of continuous service may be entitled to end of service gratuity.

The statutory calculation is based on 21 days of basic wage for each year of service during the first five years and 30 days of basic wage for each additional year after the first five years.

UAE Gratuity Calculation Formula

The basic calculation can be understood using the following formulas.

The total end of service gratuity is subject to the applicable statutory maximum of two years' wage.

Is UAE Gratuity Calculated on Basic Salary or Total Salary?

UAE end of service gratuity is calculated using the employee's last due basic wage rather than the employee's total salary package.

This means that when using the Talenzoa UAE Gratuity Calculator, you should enter your basic monthly salary rather than your total salary including allowances.

If your monthly salary consists of a basic salary plus housing, transport or other allowances, the gratuity calculation is generally based on the applicable basic wage.

Who Is Eligible for UAE Gratuity?

Under the UAE private sector employment framework, eligible full time foreign employees who complete at least one year of continuous service may be entitled to end of service gratuity when their employment ends.

Employees who have not completed one year of continuous service generally do not qualify for the statutory gratuity under this provision.

Individual circumstances can affect entitlement, so employees and employers should review the applicable employment arrangement and current UAE regulations where necessary.

Does Unpaid Leave Affect UAE Gratuity?

Unpaid absence can affect the service period used for calculating end of service gratuity. Unpaid days of absence are excluded from the applicable service period for gratuity calculation.

The Talenzoa calculator therefore includes an Unpaid Absence field so that users can enter the relevant number of unpaid days when calculating an estimate.

UAE Gratuity Calculation Examples

Example 1: Five Years of Service

Assume an eligible employee has a basic monthly salary of AED 10,000 and has completed five years of continuous service.

This example is for illustration only. Actual entitlement may vary depending on the employee's circumstances and applicable regulations.

Example 2: More Than Five Years of Service

Where an eligible employee has completed more than five years of service, the first five years are calculated at 21 days of basic wage per year. Additional completed service after five years is calculated at 30 days of basic wage per year, subject to the applicable maximum.

Important UAE Gratuity Calculation Notes

• Gratuity is generally calculated using the applicable last basic wage.
• Employees generally need at least one year of continuous service to qualify under the statutory gratuity provision.
• The first five years use 21 days of basic wage per year.
• Service beyond five years uses 30 days of basic wage per year.
• Part of a year after completing one year may be calculated proportionately.
• Unpaid absence is excluded from the applicable service period.
• The statutory maximum is two years' wage.
• This calculator provides an estimate and should not be treated as legal advice.