Finance & Money
UAE End-of-Service Gratuity Calculator
Work out UAE end-of-service gratuity from the last basic salary and years of service, with the 21-day and 30-day rates split out.
Free to useNo sign-up requiredNo watermarkRuns in your browser
Last reviewed: 5 October 2026 by Vishal Senthilkumar
UAE end-of-service gratuity is a lump sum paid to an employee when their employment ends, calculated from the last basic monthly salary and the length of service - not from the total salary, and not a flat percentage. This calculator applies the actual formula: 21 days of basic pay for each of the first five years of service, and 30 days of basic pay for every year after that.
Enter the last basic monthly salary and the years (and months) of service to see the full working - how many years fall into each rate, the total number of days, and the resulting payout. Optional fields let you account for unpaid leave, which reduces qualifying service, and a total-remuneration figure, which only matters for the two-year payout cap.
How this tool works
Enter the last basic monthly salary
Basic salary only - not allowances, bonuses or benefits. This is what the gratuity formula is built on.
Enter years and months of service
Full years in one field, any additional months (0-11) in the other. Partial years are pro-rated to the day.
Add unpaid leave days if any were taken
Unpaid leave reduces qualifying service before the gratuity split is made, at 365 days to a year.
Add total monthly remuneration only if you need the cap checked
This optional field only affects the two-year payout cap. Leave it blank and the cap is checked against the basic salary instead.
Read the breakdown
Years at the 21-day rate, years at the 30-day rate, total days, and the gratuity before and after the cap are all shown.
How it works
The daily wage used throughout is the last basic monthly salary divided by 30. That daily figure, not the monthly salary itself, is what each day of gratuity is worth.
The first five years of qualifying service accrue at 21 days of that daily wage per full year. Every year of service beyond five accrues at 30 days per full year - a materially higher rate, which is why long-serving employees see their gratuity accelerate rather than grow in a straight line.
Partial years and months are pro-rated linearly against whichever rate applies at that point - six months of service within the first five years, for example, counts as half of a 21-day year.
Any unpaid leave taken during the employment reduces qualifying service before the 21-day/30-day split is made, converting leave days to years at 365 days per year. The total payout is then capped at two years of wage - based on a supplied total-remuneration figure if one is given, or on the same basic salary already used for the daily wage if not.
Why the rate changes after five years
UAE labour law splits gratuity into two bands deliberately: 21 days per year for the first five years, and 30 days per year after that. The practical effect is that gratuity is not a straight multiple of years served - a ten-year employee gets more than double a five-year employee's gratuity, because five of those years fall in the higher band.
What this calculator does not decide for you
- It does not determine eligibility. Gratuity entitlement and any reductions tied to how the employment ended are governed by UAE labour law and the specific employment contract, not by this calculator.
- It uses basic salary only, as the law requires. Entering a total-package figure in the main salary field would overstate every day's value.
- The two-year cap is checked, but the exact wage figure used for that cap in genuinely disputed cases should be confirmed with MOHRE or a labour lawyer, not assumed from this tool alone.
Formula
Daily wage
dailyWage = last basic monthly salary ÷ 30
Gratuity days
days = (years21 × 21) + (years30 × 30)
years21 is qualifying service up to 5 years; years30 is qualifying service beyond 5 years.
Gratuity before cap
gratuity = days × dailyWage
Two-year cap
cap = (total remuneration or basic salary) × 24
Worked examples
10,000 basic salary, 7 years of service
Five years at 21 days plus two years at 30 days is 165 days, worth AED 55,000 at a daily wage of AED 333.33.
10,000 basic salary, 3 years of service
All three years fall in the 21-day band: 63 days, worth AED 21,000.
10,000 basic salary, 1 year of service
21 days at the 21-day rate, worth AED 7,000.
Long service against the cap
10,000 basic salary over 30 years works out to 855 days, or AED 285,000 before the cap - but the two-year cap against the same basic salary limits the payout to AED 240,000, unless a higher total-remuneration figure is supplied for the cap check.
Frequently asked questions
Is this UAE gratuity calculator free?
Yes, free with no sign-up. The calculation runs in your browser and nothing you enter is stored or sent anywhere.
How is UAE end-of-service gratuity calculated?
From the last basic monthly salary, divided by 30 for a daily wage. The first five years of service earn 21 days of that daily wage per year, and every year after that earns 30 days per year.
Does gratuity use basic salary or total salary?
Basic salary only - allowances, bonuses and other benefits are excluded from the calculation under UAE labour law.
Is there a cap on gratuity?
Yes, the total payout is capped at two years' wage. Which wage figure applies to the cap can depend on the specifics of the employment - confirm with MOHRE if a long service period approaches the cap.
What happens to unpaid leave?
Unpaid leave reduces the qualifying service used in the calculation, at a rate of 365 days of unpaid leave equalling one year of service removed.
Is this legal advice?
No. Estimate only, not legal advice. Check current rules with MOHRE, since eligibility and edge cases depend on the specific employment contract and how the employment ended.