Gratuity Calculator UAE – Dubai & Abu Dhabi Gratuity Calculation 2025
Each year, UAE sees hundreds and thousands of company registrations and company liquidations due to its dynamic business environment. This impacts employees too in relation to their end of service benefits, both when investors start a company and also when they close a company. Understanding your rights is crucial, particularly about UAE gratuity, which is also referred to as end-of-service benefits. Whether you are planning to resign from your job, switch your job, or retire, it is crucial to understand how to calculate gratuity in UAE.
We understand that calculating the gratuity can be tricky for many people who don’t like numbers and calculations. The rules for gratuity calculation UAE can be different for limited and unlimited contracts, resignations, or terminations. That is why we have built this free gratuity calculator so that you can easily calculate your gratuity without performing any mathematical calculations.
What Is Gratuity or UAE End of Service Benefits?
Gratuity is an amount that the employee receives one-time from the employer when you leave your job, as long as you have worked for at least one complete year without a break. It is a legal benefit for employees in both private as well as public sectors under UAE Labour Law.
Gratuity Calculation UAE – Rules & Formula
Understanding how gratuity works in the UAE is important for every employee. It helps you know your rights, plan your finances, and avoid any confusion when your job ends.
The gratuity is calculated using your basic salary, the length of your service, and the type of contract you have. Previously we had two types of contracts i.e. limited and unlimited, but now we only have limited contracts in the UAE. According to UAE Labour Law, if you have completed at least one full year, you are entitled to receive UAE end of service benefits. The formula is:
Gratuity Calculation Formula = (Basic Salary ÷ 30) × Number of entitled days × Years of service
- The gratuity for first 5 years is based on 21 days of basic salary per year.
- After 5 years, gratuity is calculated as 30 days of basic salary for each extra year.
Understand How to Calculate Gratuity in UAE with Example:
Your basic monthly salary is AED 6,000, and you have been employed for 6 years on a limited contract.
- For the first 5 years: (6,000 ÷ 30) × 21 × 5 = AED 21,000
- For the 6th year: (6,000 ÷ 30) × 30 × 1 = AED 6,000
- Total Gratuity = AED 21,000 + AED 6,000 = AED 27,000
This is just a simple example of how to calculate the gratuity in UAE manually. Gratuity figures may differ based on different scenarios like the separation method, duration of your employment, and if there was a break during your employment. Use the Vertix Gratuity Calculator for a fast as well as precise result to save time and prevent mistakes.
Important Factors to Consider for Calculating Gratuity in UAE:
When figuring out your gratuity or UAE end of service benefits, a few key things affect how much you will receive. Here are the most important factors to keep in mind:
The Basic Salary
Gratuity is calculated based only on your basic salary. Allowances like housing, travel, or overtime are not included.
Length of Service
The longer you have worked with your employer, the more gratuity you will receive. To be eligible for gratuity, you need to work continuously for at least 1 complete year.
Reason for Leaving the Job
Whether you resigned, terminated, or your contract ended naturally may also affect the gratuity amount.
What is the Vertix Gratuity Calculator and How to Use it?
The Vertix Gratuity Calculator is a free online tool that is accessible to everyone. It helps both workers and employers to figure out how much end-of-service pay is due based on the country’s labour rules. Whether you are changing jobs, retiring, or just checking your benefits, this tool makes it easy to understand and calculate your gratuity in Dubai, Abu Dhabi and all other Emirates of the UAE. It is very easy to use as you just need to input some basic details like the method of separation from the job, the starting date of your employment, the end date, and enter your basic salary.
Easy to Use – There is nothing that can confuse you as the steps for calculation are very simple. You just have to enter some basic information, and you will get your results in seconds.
Accurate Results – We follow the latest UAE Labour Law, so you can trust the calculation is done the right way.
Saves Time – You do not need to do any manual math or read through legal documents. The calculator does it all in accordance with applicable gratuity rules.
Free for Everyone – There are no sign-ups, no payments. Just open the tool and get your end of service benefits figure anytime.
Made by Experts – It is built by the Vertix AI team, who understand both UAE labour laws and how to deploy AI using those laws to develop such free tools.
