What is UAE Gratuity?
Gratuity is a legal payment offered to non-Emirati employees when they leave a job in the UAE. It is calculated based on your basic salary and length of service. Whether you resign or are terminated, you may be eligible for this payment.
To estimate your amount easily, use the Gratuity Calculator UAE, which is accurate and updated with UAE Labour Law.
When Are You Eligible for Gratuity?
To receive gratuity in the UAE https://gratuitycalculatorsuae.com/ you must meet these conditions:
- Be an expatriate (not a UAE citizen)
- Work for at least 12 continuous months
- Leave the job legally, with proper notice or after contract completion
If you leave before completing one year, you won’t receive any gratuity.
For full eligibility details, see this UAE gratuity eligibility guide.
Steps to Check Your Gratuity
- Know Your Contract Type: Is your contract limited (fixed term) or unlimited (open term)? This affects your calculation.
- Find Your Basic Salary: Look at your employment contract. Gratuity is calculated only on basic salary not on allowances.
- Know Your Start and End Dates: Gratuity depends on your total time of service.
- Understand the Reason for Leaving: Whether you resigned or were terminated affects your benefits.
- Use a Trusted Online Tool: Enter all these details into a tool like the UAE Gratuity Estimator to get your result instantly.
Gratuity Calculation Formula
The gratuity formula in the UAE is based on years of service and contract type. Here's a summary:
- For 1–5 years of service: 21 days of basic salary per year
- More than 5 years: 30 days of basic salary per year after 5 years
Formula Example:
Basic salary = AED 10,000
Years worked = 6
Calculation =
(10,000 × 21 × 5 ÷ 30) + (10,000 × 30 ÷ 30) = AED 35,000 + AED 10,000 = AED 45,000
Or just try the quick UAE gratuity calculator tool and skip the math!
What If You Resign?
Resignation changes the amount you receive. In unlimited contracts:
- 1–3 years: You get 1/3 of 21 days per year
- 3–5 years: You get 2/3 of 21 days per year
- 5+ years: You get the full 21 days/year, then 30 days/year after 5 years
Learn more from this resignation gratuity guide.
What If You’re Terminated?
If you're terminated, the gratuity is typically higher unless you’re dismissed for misconduct.
- Less than 1 year: No gratuity
- 1 to 5 years: 21 days per year
- 5+ years: 21 days per year (first 5 years) + 30 days for every year after
Find details in the termination and gratuity rules.
Reasons Why Gratuity Might Be Denied
- You left without notice
- You were dismissed for misconduct
- You didn’t complete 1 year of service
These conditions are mentioned in Article 139 of UAE Labour Law.
Tips to Protect Your Gratuity
- Keep all your work contracts and documents safe
- Track your joining and leaving dates
- Always give legal notice if you resign
- Talk to HR and get your final settlement letter
- If you feel your gratuity is being unfairly held, you can contact MOHRE or a legal expert.
Conclusion: Use the Right Tools to Stay Informed
Gratuity is a key financial benefit for workers in the UAE. If you plan to resign or are near the end of your contract, it’s important to know your payout amount. Use the Gratuity Calculator UAE to check it easily and ensure your employer gives you the correct amount.
Knowing your rights helps you plan your future, manage your money, and avoid legal issues.