Total Gratuity Entitlement
AEDNaN
Daily Basic Wage
AED3,333
Gratuity (First 5 Years)
AEDNaN
Gratuity (Beyond 5 Years)
AEDNaN
2-Year Salary Cap
AED24,00,000
UAE Gratuity Calculator — Basic Monthly Salary (AED) ₹1,00,000
With basic monthly salary (aed) of ₹1,00,000, the total gratuity entitlement is AED3,50,000.
Your basic salary only — excludes housing, transport, and other allowances
Total years worked with this employer (fractions allowed)
Daily Basic Wage
AED333
Gratuity (First 5 Years)
AED35,000
Gratuity (Beyond 5 Years)
AED0
Total Gratuity Entitlement
AED35,000
2-Year Salary Cap
AED2,40,000
Calculated under UAE Federal Labour Law (Federal Decree-Law No. 33 of 2021). Gratuity is based on basic salary only — housing and transport allowances are excluded. Maximum gratuity is capped at 2 years' basic salary.
What is the UAE Gratuity Calculator?
The UAE End of Service Gratuity (EOSB) is a statutory payment that all private-sector employees are entitled to after completing at least one year of continuous service. Calculated under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, gratuity is based solely on your basic monthly salary — housing, transport, and other allowances are excluded. The formula gives 21 working days of basic pay per year for the first five years, then 30 days per year beyond that, subject to a total cap of 24 months' basic salary.
Formula
Daily wage = Basic salary ÷ 30. First 5 years: Gratuity = Daily wage × 21 × min(years, 5). Beyond 5 years: Additional gratuity = Daily wage × 30 × (years − 5). Total is capped at 24 months' basic salary.- G
- = Total gratuity entitlement (before cap)
- W_d
- = Daily basic wage (basic monthly salary ÷ 30)
- y_1
- = Years of service up to 5
- y_2
- = Years of service beyond 5
How to use the UAE Gratuity Calculator
- 1
Step 1
Enter your basic monthly salary in AED (exclude housing and transport allowances).
- 2
Step 2
Enter your total years of service with this employer (fractions like 3.5 are accepted).
- 3
Step 3
The calculator instantly shows your daily wage, gratuity for each service tier, and the total entitlement.
- 4
Step 4
Compare the total against the 2-year salary cap — the lower figure is your legal entitlement.
Reviewed by
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Frequently asked questions
Who is entitled to UAE gratuity?
All private-sector employees who have completed at least one continuous year of service are entitled to EOSB. UAE nationals enrolled in GPSSA and employees covered by DIFC DEWS are exempt from the EOSB scheme.
Is gratuity calculated on basic salary or total package?
Gratuity is calculated on basic salary only. Housing allowance, transport allowance, and other benefits are excluded from the calculation under UAE Labour Law.
What is the maximum gratuity in the UAE?
Total gratuity cannot exceed the equivalent of 24 months' basic salary, regardless of years of service.
Do I lose gratuity if I resign?
Under the 2021 Labour Law, gratuity applies whether you resign or are terminated, as long as you have completed one full year of service. The old rules that reduced gratuity for resignation were removed.
Is UAE gratuity taxable?
No. The UAE has no personal income tax, and gratuity payments are fully tax-free for employees.
Sources
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Calculated with CalcCrack