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Calculate Your Gratuity Entitlement

Total Gratuity Entitlement (AED)
AED 0.00
Description Amount (AED)
📋 UAE Labour Law 2026 - Gratuity Rules:

Limited Contract (Current Standard):
• 1-5 years: 21 days basic salary per year
• 5+ years: 30 days basic salary per year
• Maximum cap: 2 years' salary (730 days)

Eligibility:
• Minimum 1 year continuous service required
• Applies to resignations and terminations
• Updated per MOHRE regulations
⚠️ Disclaimer: This gratuity calculator 2026 provides estimates based on UAE Labour Law and MOHRE guidelines. Actual end of service benefits may vary based on employment contract terms, deductions (loans, advances), and final settlement details. Always verify with your employer, HR department, or legal advisor for accurate calculations. This tool is for informational purposes only.

About Dubai Gratuity Calculator 2026

Our Free Dubai Gratuity Calculator is an advanced online tool designed to help UAE employees quickly calculate their end of service gratuity benefits (EOSB) according to the latest UAE Labour Law and MOHRE regulations. Whether you're planning to resign, face termination, or are approaching retirement, our calculator provides accurate estimates of your gratuity entitlement. Perfect for private sector employees, expatriates, and UAE nationals.

What is Gratuity? (End of Service Benefits)

Gratuity, officially known as End of Service Benefit (EOSB), is a mandatory lump-sum financial benefit paid to employees upon termination of employment in the UAE. It's legally mandated under Article 51 of the UAE Federal Labour Law No. (33) OF 2021 and applies to all private sector workers regardless of nationality. The gratuity amount is calculated based on your years of service and monthly basic salary, with calculations varying based on contract type and reason for separation.

Key Updates for 2026

As of 2026, the UAE Labour Law continues with Limited Contracts as the standard for all new employment. This means all employees receive their full gratuity payment after completing one year of service, regardless of when they resign. The confusing deduction rules from the old unlimited contracts no longer apply. This gratuity calculator has been updated to reflect the latest MOHRE guidelines and 2026 labour law requirements.

How to Use the Gratuity Calculator UAE

Step-by-Step Guide for 2026 Calculations:

  1. Enter Monthly Basic Salary (AED): Input your gross monthly basic salary in AED. This must be your base salary excluding housing allowance, transportation, and other benefits as per UAE Labour Law Article 134.
  2. Enter Years of Service: Specify your total years and months worked continuously in your organization. Include partial years (e.g., 3.5 years). This is the core input for your gratuity calculation formula.
  3. Select Separation Type: Choose whether you've completed service/resigned, were terminated without cause, or are retiring after 20+ years. This affects your gratuity eligibility and payment amounts.
  4. Calculate: Click "Calculate Gratuity" to instantly see your entitlement breakdown with detailed table showing calculation methodology.

Understanding Gratuity Rates Under UAE Labour Law 2026

Gratuity Calculation Formula

Formula: Gratuity = (Monthly Basic Salary ÷ 30) × Gratuity Days × Years of Service

Where Gratuity Days = 21 days (for years 1-5) or 30 days (for years beyond 5), capped at maximum of 730 days equivalent.

Limited vs Unlimited Contract - Gratuity Comparison 2026

Limited Contracts (Current Standard)

Limited Contracts are now the only standard employment contract type in the UAE as of February 2023. These are fixed-term agreements with a clear start and end date (typically 1-3 years). Key benefits for gratuity calculation:

Unlimited Contracts (Legacy - For Reference)

Unlimited Contracts were phased out in February 2023 but may apply to employees hired before that date. If on unlimited contract, gratuity calculation differs significantly:

Contract Renewals and Gratuity

As per UAE Labour Law Article 38, when a limited contract is renewed, the new contract period is added to the original service years for gratuity calculation purposes. This means if you work 2 years on contract 1 and 3 years on contract 2 (renewed), your total service for gratuity = 5 years.

Gratuity Calculation Examples for 2026

Example 1: Limited Contract - 6 Years Service

Scenario: Basic Salary: AED 8,000 | Service: 6 Years | Limited Contract | Resignation

Example 2: Limited Contract - 3 Years Service

Scenario: Basic Salary: AED 5,000 | Service: 3 Years | Limited Contract | Termination

Frequently Asked Questions - Gratuity Calculator UAE 2026

❓ Am I eligible for gratuity in UAE if I resign?
Yes, under the current UAE Labour Law 2026, if you're on a Limited Contract and have completed at least one year of continuous service, you'll receive full gratuity payment even if you resign. You'll receive gratuity based on your years of service: 21 days per year for years 1-5, and 30 days per year for years beyond 5. The old rules of deductions for resignation under unlimited contracts no longer apply for new employees.
❓ What if I'm terminated without cause?
If you're terminated without cause (not under Article 120 of UAE Labour Law), you're entitled to full gratuity payment as end of service benefit. Even if you have less than one year of service, you may be entitled to compensation. Gratuity is calculated on 21 days per year for years 1-5, and 30 days per year after 5 years. Always consult your employment contract or a legal advisor for specifics regarding your termination.
❓ Is there a maximum limit to gratuity entitlement in UAE?
Yes, under UAE Labour Law 2026, gratuity is capped at a maximum of 2 years' salary (730 days' worth of basic salary). This applies regardless of how many years you've worked. For example, if your monthly basic salary is AED 5,000, your maximum gratuity payment would be AED 120,000 (5,000 × 24 months), even if you've worked 30+ years.
❓ How does basic salary differ from gross salary for gratuity calculation?
Basic salary is your fixed monthly salary EXCLUDING housing allowance, transportation allowance, and other benefits. Gratuity is calculated on basic salary only, not on gross salary which includes all allowances. For example, if gross salary is AED 15,000 but basic is AED 8,700, gratuity is calculated on AED 8,700. Check your employment contract to identify your exact basic salary amount.
❓ Do leaves of absence affect gratuity calculation?
Authorized leave (annual leave, sick leave) counts as service time and does NOT reduce your gratuity. However, extended unpaid leave, particularly those not approved by employer, may reduce your effective years of service counted toward gratuity calculation. Days without pay are not incorporated in the gratuity payment calculation under UAE Labour Law. Always verify your leave details with your HR department.
❓ How is gratuity affected by salary increases during employment?
Gratuity is based on the basic salary at the time of employment termination, NOT the salary throughout your entire service period. If you received a promotion or salary raise, your final gratuity will be calculated on the higher salary. This is actually beneficial if your salary increased significantly during your employment tenure in the UAE.
❓ When is gratuity payment made after separation?
According to UAE Labour Law and MOHRE guidelines, gratuity should be paid within 30 days of employment termination as part of your full and final settlement. The payment is usually made via direct bank transfer to your account or the bank account provided in your employment contract. Some employers may arrange payment through EOSB settlement companies approved by MOHRE.
❓ Can employers deduct amounts from gratuity payment?
Under Article 135 of UAE Labour Law, employers reserve the right to deduct certain legitimate amounts from gratuity payment including loans provided, advances given, or other contractual deductions specified in your employment agreement. However, these deductions must be reasonable and specified in your contract. Any unjustified deductions should be reported to MOHRE or labour department for investigation.
❓ What is the difference between limited and unlimited contracts for gratuity 2026?
Limited Contracts (current standard since Feb 2023) provide full gratuity after 1 year of service, with no deductions for resignation. Unlimited Contracts (legacy/old system) had penalty deductions for resignation: 1/3 deduction for years 1-3, and 2/3 deduction for years 3-5. New employees in UAE are hired on Limited Contracts only. This gratuity calculator supports both types for comprehensive calculations.
❓ What if employee dies - is gratuity paid to heirs?
Yes, according to Article 51 of UAE Labour Law, if an employee dies after completing one year of service, the gratuity amount is paid to the employee's legal heirs or family members as designated beneficiary. This ensures that the accumulated gratuity benefit is not forfeited and provides financial support to the family after the employee's death.
❓ Are there different gratuity rules for government vs private sector employees?
This gratuity calculator is designed for private sector employees in UAE. Government sector employees are covered under different regulations by their respective government entities. Government employees should refer to their department's HR policies or the Ministry of Human Resources for accurate gratuity calculations specific to public sector employment.

Important Information About Gratuity 2026

MOHRE Compliance and Labour Law Updates

This gratuity calculator is updated with the latest MOHRE (Ministry of Human Resources and Emiratisation) guidelines and UAE Labour Law requirements for 2026. All calculations comply with Federal Labour Law No. (33) OF 2021 and its amendments, ensuring accuracy for your end of service benefit calculations.

Full and Final Settlement Components

Your full and final settlement includes more than just gratuity. It may also include:

Gratuity for Expatriates vs UAE Nationals

The gratuity calculation method is the same for both expatriate employees and UAE nationals working in the private sector. Both benefit from the current Limited Contract system with full gratuity entitlement after one year of service. There are no nationality-based differences in gratuity calculations under current UAE Labour Law 2026.

Contacting MOHRE for Verification

If you have disputes about your gratuity calculation or full and final settlement, you can contact MOHRE through their official website or the 80060 hotline. They can provide official verification of your gratuity entitlement and help resolve any disputes with your employer regarding end of service benefits.