Gratuity Calculator UAE

Use this free online tool to calculate gratuity in UAE instantly

 

Step 1 of 2

50%
  • For how long do you work in the company?

 
 

Formula Used :

(If year >= 1 or year < 3)
GC In U A E = [ Basic Salary x 7 days x No. of years of service ] / 30
(If year >= 3 or year < 5)
GC In U A E = [ Basic Salary x 14 days x No. of years of service ] / 30
(If year >= 5)
GC In U A E = [ Basic Salary x 21 days x No. of years of service ] / 30
 
 
How to calculate gratuity amount with this tool ?
Gratuity is the sum of money paid by an employer to an employee for the services rendered within the company or firm. You can find your gratuity 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.
How to Calculate Gratuity in the UAE?
The calculation of gratuity varies according to the type of contract.
Limited Contract Gratuity Pay
  • Employees who leave the company within the period of 1 year and 5 years of service get a gratuity pay on 21 days salary for each year.
  • Employees who leave the company after completing 5 years or more in service get a gratuity pay on 30 days salary for each year.

Here is an example of gratuity pay in case of limited contract:

Gratuity pay on 21 days salary for each year

Basic salary: Dh15,000
Daily wage = 15,000 ÷ 30 = Dh500
500 x 21 = Dh10,500

Dh10500 is the gratuity entitlement of the employee for each year


Gratuity pay on 30 days salary for each year

500 x 30 = Dh15,000

Dh15,000 is the gratuity entitlement of the employee for each year

Unlimited Contract Gratuity Pay

The gratuity pay for unlimited contract is based on the number of years served in the organization. For unlimited contract gratuity pay, an employee has to complete at least one year of service in the company.

  • Employees who serve a company for at least one year is entitled to one third (1/3) of the 21-days gratuity pay.
  • Employees who serve a company for a period between 3 years and 5 years are entitled to two thirds (2/3) of the 21-days gratuity pay.
  • Employees who serve a company for 5 years or more are entitled to full 21-days gratuity pay.


Here is an example of gratuity pay in case of unlimited contract:

Basic salary example: Dh10,000
a. Daily wage = 10,000 ÷ 30 = Dh330.30
b. 21-days salary = 330.30 x 21 = 6,936.30