August 29, 2025 | Dubai:  The UAE gratuity calculator is one of the most searched-for tools among employees across Dubai, Abu Dhabi, and Sharjah. Whether you’re a long-time professional thinking about changing jobs or a newcomer to the Emirates figuring out your employment rights, the UAE gratuity calculator helps you understand exactly how much you’re owed at the end of your service. For many workers, gratuity is not just a payment, it’s a financial cushion that supports them when they move between jobs or plan for the future.

In recent years, the UAE government has worked hard to make the process fairer and easier. The UAE gratuity calculator offered by the Dubai Development Authority gives you a clear figure in minutes. All you need are three simple details: your start date, your last working day, and your final basic salary. With this, you can instantly see what you’re entitled to, based on UAE Labour Law.

How the UAE Gratuity Calculator Works?

The UAE gratuity calculator is based on your basic salary,  not your full take-home pay. That means allowances like housing, transport, or utilities are excluded. The formula follows UAE Labour Law, which sets out:

• For the first five years: Up to 21 days of basic salary for each year of service.
• After five years: 30 days of basic salary for each additional year.
• Maximum cap: The gratuity payment cannot exceed two years’ total salary.
• Unpaid leave: Days of unpaid leave are not counted in the calculation.

For example, if you worked for six years with a basic salary of Dh10,000, the UAE gratuity calculator would give you 21 days per year for the first five years (around Dh34,615), plus 30 days for the sixth year (Dh10,000), totalling Dh44,615.

Why Contract Type Matters?

When using the UAE gratuity calculator, it’s important to check what kind of contract you’re under:

• Limited-term contracts: These specify a start and end date. Unless renewed, they expire automatically. Many project-based jobs fall under this category.
  
• Unlimited-term contracts: These are open-ended and continue until the employer or employee ends them.

The calculation may vary slightly depending on whether you resign or your employer terminates your contract.

Resignation vs Termination

The UAE gratuity calculator also factors in whether you resign or are terminated:

• If terminated:
  • More than 1 year but less than 5 years- 21 days’ salary per year.
  • More than 5 years-  30 days’ salary per year after the first five.
    
• If you resign:
  • Less than 1 year- no gratuity.
  • Between 1–3 years- one-third of 21 days’ salary per year.
  • Between 3–5 years-  two-thirds of 21 days’ salary per year.
  • More than 5 years- full 21 days’ salary per year.

This makes the UAE gratuity calculator especially useful, since it helps employees understand the difference in outcomes depending on their situation.

New End-of-Service Savings Scheme

Since 2023, the UAE has also introduced an optional end-of-service savings scheme. Instead of receiving only a lump-sum gratuity at the end, workers can choose to place contributions into regulated savings and investment funds. This adds another layer of security, ensuring employees can grow their savings during their years in the Emirates.

The UAE gratuity calculator still applies for traditional gratuity, but those who opt into the savings plan may benefit from both.

Why Every Worker Should Use It?

For employees planning to switch jobs, the UAE gratuity calculator is more than just a legal tool, it’s peace of mind. It helps families budget for school fees, relocation, or even starting a business. For younger professionals, it gives clarity on whether to stay longer in a company or move on.

Employers also benefit from the transparency. With an official UAE gratuity calculator available online, there is less confusion, fewer disputes, and a smoother exit process for both sides.

The UAE gratuity calculator is a simple yet powerful way to understand your rights. Whether you are resigning, being terminated, or just planning ahead, it gives you a clear estimate of what to expect. By entering just your start date, end date, and basic salary, you can instantly find out how much you’re entitled to without the stress of complex legal jargon.

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