# Gratuity Calculator UAE

### Step 1 of 2

50%

• For how long have you worked in the company?

• #### Approximate Gratuity

Formula (Unlimited Contract):

• 1 to 3 years of service
Gratuity = (Basic salary x 7 days x service years)/30
• 3 to 5 years of service
Gratuity = (Basic salary x 14 days x service years)/30
• 5 or more years of service
Gratuity = (Basic salary x 21 days x service years)/30

Formula (Limited Contract):

• 1 to 5 years of service
Gratuity = (Basic salary x 21 days x service years)/30
• 5 or more years of service
Gratuity = (Basic salary x 30 days x service years)/30

Are you eligible for gratuity payment? Find out now.

## How to use this tool?

Gratuity is the sum of money paid by an employer to an employee for the services rendered within the company or firm. With this tool, you can find the amount by simply entering your basic salary and the number of years of service.
This is one of the easiest ways to calculate your gratuity. You can also use this tool to estimate how much gratuity you can get when you retire.

### Calculating Gratuity on the basis of contract type

The calculation varies according to the type of contract. There are two types of contracts in the UAE - Unlimited Contract and Limited Contract. The pay differs on the basis of the contracts. Below mentioned are some rules for the types of gratuity along with examples.

### Unlimited Contract Gratuity Pay

The pay for unlimited contract is based on the number of years served in the organization. For unlimited contract pay, an employee has to complete at least one year of service in the company.
• Employees who leave the company within the period of 1 year and 5 years of service get a pay on 21 days salary for each year.
• Employees who leave the company after completing 5 years or more in service get a pay on 30 days salary for each year.

Here are some examples in case of unlimited contract:

 Gratuity pay on 21 days salary for each year Gratuity pay on 14 days salary for each year Gratuity pay on 7 days salary for each year Basic salary: Dh15,000 Basic salary: Dh15,000 Basic salary: Dh15,000 Daily wage = 15,000 ÷ 30 = Dh500 Daily wage = 15,000 ÷ 30 = Dh500 Daily wage = 15,000 ÷ 30 = Dh500 Gratuity = 500 x 21 = Dh10,500 Gratuity = 500 x 14 = Dh7,000 Gratuity = 500 x 7 = Dh3,500

### Limited Contract Gratuity Pay

For limited contract pay, an employee has to complete at least one of service in the company.

• Employees who leave the company within the period of 1 year and 5 years of service get a pay on 21 days salary for each year.
• Employees who leave the company after completing 5 years or more in service get a pay on 30 days salary for each year.

### Here are some examples in case of limited contract:

 Gratuity pay on 21 days salary for each year Gratuity pay on 30 days salary for each year Basic salary: Dh15,000 Basic salary: Dh15,000 Daily wage = 15,000 ÷ 30 = Dh500 Daily wage = 15,000 ÷ 30 = Dh500 Gratuity = 500 x 21 = Dh10,500 Gratuity = 500 x 30 = Dh15,000 Dh10500 is the gratuity entitlement of the employee for each year Dh15000 is the gratuity entitlement of the employee for each year