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Gratuity Calculator

2023



Here's Your Calculator For

Employee Gratuity In UAE




You Should Receive Approximate:



The UAE Labour Law entitles employees in the private sector to receive end-of-service benefits, provided the employee has worked for the company for a minimum of a year.

The end-of-service benefits are calculated as follows:

  • 21 days of basic salary for the employee who has completed a full year up to 5 years.
  • 30 days of basic salary for every completed year after the 5 years.

For example, for a basic salary of Dh10,000:

  1. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
  2. Dh333.33 x 21 = Dh7,000. So 21 days’ salary is Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
  3. Calculation based on 30 days for those exceeding five years of service:
  4. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service – so long as the total figure does not exceed two years’ total salary figure.

Note: this is merely a guideline and you should consult with your employer for further clarity within your organisation.

Employees calculate the end-of-service gratuity on basis of the last salary to which the employee was entitled, the basic salary. However, it will not include allowances such as conveyance, utilities, conveyance, furniture, etc. You can also find a user-friendly gratuity calculator in Dubai to calculate your gratuity.
Yes, you can calculate the gratuity manually also and also use the gratuity calculator for UAE. You can multiply the daily wage by 21 or 30 depending on the tenure of service in the company = 333.30 x 21 = 6,999.30.
Yes, gratuity benefits are received by the employees if they have retired or resigned. It depends on the terms and conditions also if the employee has completed at least one year then they are entitled to get the gratuity.
According to the New Labor Law, all contracts are now limited to five years long. The gratuity is calculated based on 21 days of basic salary per year of service in the company in UAE. If the employee has more than five years of service, then he would be entitled to 30 days of gratuity.
Gratuity is one of the several components that make up gross salaries for employees. However, the gratuity is calculated if the employee has a service period between three to five then it is based on 21 days of basic salary per year. If the employee has more than five years of service, then he would be entitled to 30 days of gratuity.
Gratuity is a benefit given to the employee based on their service duration, but it is not paid as a part of the regular monthly salary. However, the gratuity is calculated if the employee has a service period between three to five then it is based on 21 days of basic salary per year.
You will be needing three factors to count on for the calculation: type of contract, last basic salary, and duration of employment. You need to know if you have a limited contract or an unlimited contract (according to the new amendments there is only a limited contract in 2023) and the last basic salary will be counted for the calculation. You will also need to know the duration of your employment service.
If an employee has less than 1 year of working tenure, then gratuity is not entitled. If the employee has an employment period between 1 to five years, they are entitled to gratuity based on 21 days’ salary for each year of work. If the employee has more than five years of service, then he would be entitled to 30 days of gratuity.
If you have an unlimited contract with the company in UAE, then you can calculate your gratuity amount. For those employees who have worked for 1-3 years and resigned, gratuity consists of 1/3rd of their basic salary of 21 days for each year of service. If you have worked for 3-5 years, the gratuity consists of 2/3rd of your basic pay of 21 days for each year of service.
However, according to the new amendment in the UAE labor law employee contracts must now be limited.
If you have more than 5 years of service, then your gratuity consists of their complete basic salary of 21 years for each year of service.
On the other hand, if you have a limited contract with the company for less than 5 years of service then gratuity consists of your basic salary for 21 days for every year of the year.
If you have more than 5 years of service, then your gratuity will consist of your basic pay for 21 years of your first 5 years and after the 5th year, 30 days of basic pay is counted.


Disclaimer

The aim of this gratuity calculator is to guide UAE employees to know the estimated amount of their gratuity. It has no legal basis; this calculator only counts the most common employment circumstances under UAE Labor Law. Please, note that this gratuity calculator only calculates the gratuity of the basic salary with the respective years. It does not cover the other end-of-service benefits and does not count the other factors like unused leaves pay, air tickets, notice compensation, etc. Please concern the professional to guide you to calculate all end-of-service benefits for your individual case. ebs is not responsible for any errors in your gratuity amount calculation.