UAE End of Service Gratuity Calculator
Accurately compute statutory severance pay and final settlement dues for employees in Dubai, Abu Dhabi, and across the UAE.
Employment & Compensation Inputs
UAE Labour Law Statutory Rules Applied
- First 5 Years: 21 calendar days of basic salary for each year of service.
- Beyond 5 Years: 30 calendar days of basic salary for each additional year.
- Statutory Cap: Total end-of-service gratuity cannot exceed 2 years’ basic salary.
- Service Threshold: Minimum 1 full year of continuous service required for eligibility.
End of Service Gratuity
Based on 4 Years, 11 Months, 30 Days of continuous service.
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Frequently Asked Questions
How is gratuity calculated under UAE Labour Law?
Under UAE Labour Law, full-time employees who complete at least one continuous year of service receive: 21 calendar days of basic salary for each year for the first five years of service, and 30 calendar days of basic salary for each additional year beyond five years. Fractions of a year are calculated pro-rata.
Is gratuity calculated on basic salary or total gross salary?
Gratuity is calculated strictly on the employee's last drawn basic wage. Housing allowance, transport, medical insurance, utilities, and overtime are legally excluded from the end-of-service gratuity calculation.
What is the maximum limit on end-of-service gratuity in the UAE?
By statutory regulation, total end-of-service gratuity cannot exceed two years' worth of the employee's basic salary, regardless of the total duration of tenure.