Free UAE End of Service Tool by ZeroSync Accountants

Free UAE Gratuity Calculator 2026

Estimate your UAE end-of-service gratuity instantly using your last basic salary, joining date, last working day and unpaid leave. Updated for UAE Labour Law and suitable for common private-sector employment cases outside DIFC, ADGM and approved alternative savings schemes.

21 Days Basic salary per year for the first five years
30 Days Basic salary per year after five years
1 Year Common minimum service period for gratuity
2 Years Common maximum gratuity cap estimate, subject to review
Last updated 22 July 2026
Reviewed by ZeroSync payroll and accounting team
Useful for Employees, HR teams, payroll teams and Dubai SMEs
Source basis Articles 51–53, Federal Decree-Law No. 33 of 2021
Calculate Your Estimate

UAE Gratuity Calculator

Enter your employment dates and basic salary to estimate your end-of-service gratuity in UAE. This is an indicative estimate only and should be reviewed before final settlement.

End of Service Gratuity Calculator

This calculator gives an indicative UAE gratuity estimate. Final entitlement can depend on contract terms, unpaid leave, contract terms, applicable jurisdiction, deductions, payroll records and legal review. For part-time work, enter the contractual ratio used under the applicable regulations.

Estimated Gratuity

AED 0

Enter your details and calculate your UAE end-of-service gratuity estimate.

Calendar Service 0 years
Eligible Days 0
Daily Basic Wage AED 0
Unpaid Leave Deducted 0 days
First 5 Years AED 0
After 5 Years AED 0
Part-Time Ratio 100%
Two-Year Cap Not applied
Enter your details to see the step-by-step formula used for the estimate.

Gratuity is only one part of final settlement. This tool does not calculate unused leave, notice compensation, commission, deductions, airfare or other employee settlement items. Use the UAE Final Settlement Calculator if you need an estimate covering those components.

How It Works

How UAE Gratuity Is Calculated

UAE gratuity, also called end-of-service benefit, is commonly estimated using the employee's last basic salary and completed service period. For many UAE private sector employees, the common calculation is 21 days of basic salary for each year of the first five years, and 30 days of basic salary for each additional year after five years. Unpaid leave days should be excluded from the eligible service period, and the final result should be checked against the employment contract, payroll records and applicable employment rules.

01

Check Service Period

The tool compares joining date and end date, then adjusts for unpaid leave days entered by the user.

02

Use Basic Salary

Gratuity is generally estimated using monthly basic salary, not total gross salary or allowances.

03

Apply 21 and 30 Day Bands

The first five years use 21 days per year, and service above five years uses 30 days per year.

04

Review Final Settlement

The result should be reviewed before using it for payroll, employee exit, or accounting records.

What This Calculator Covers

What the UAE Gratuity Calculator Checks

The tool checks the core inputs used for a common UAE private-sector gratuity estimate and shows each part of the calculation clearly. Employees and employers can review the service period, basic wage, unpaid leave adjustment, applicable service bands and statutory maximum before relying on the estimate.

Input or Rule How it affects the estimate Why it matters
Monthly basic salary Used to calculate the daily basic salary Gratuity is generally based on basic salary, not allowances
Joining date and end date Used to calculate the total service period Employees usually need at least one year of service to qualify
Unpaid leave days Deducted from eligible service days Unpaid absence can reduce the service period used for gratuity
Part-time work ratio Applies a proportional adjustment Part-time arrangements should be reviewed against the contract
Maximum cap estimate Limits the result where the estimate exceeds the common cap Article 51 limits the total benefit to no more than two years of wage
Gratuity Formula

UAE Gratuity Calculation Formula

Daily basic salary = Monthly basic salary ÷ 30

First 5 years = Daily basic salary × 21 × years of service up to 5 years

After 5 years = Daily basic salary × 30 × years of service above 5 years

Estimated gratuity = First 5 years component + after 5 years component

How the Estimate Is Limited

Minimum service1 continuous year

Unpaid absenceExcluded

Partial yearsCalculated proportionally

Maximum benefit24 months of basic wage

Result typeIndicative estimate

Worked Examples

UAE Gratuity Calculation Examples

These illustrations assume full-time service, no unpaid leave and no special employment regime.

AED 3,000 basic salary for 2 years

Daily wage: AED 100

Formula: AED 100 × 21 × 2

Estimated gratuity: AED 4,200

AED 5,000 basic salary for 5 years

Daily wage: AED 166.67

Formula: AED 166.67 × 21 × 5

Estimated gratuity: AED 17,500

AED 10,000 basic salary for 7 years

First 5 years: AED 35,000

Next 2 years: AED 20,000

Estimated gratuity: AED 55,000

AED 8,000 salary, 4 years, 50% ratio

Full-time estimate: AED 22,400

Part-time adjustment: × 50%

Estimated gratuity: AED 11,200
Official Source Note

UAE Gratuity Rules Used in This Estimate

The calculation follows Article 51 of UAE Federal Decree-Law No. 33 of 2021 for common full-time foreign-worker cases: at least one year of continuous service, 21 days of last basic wage for each of the first five years, 30 days for each later year, proportional entitlement for parts of a year, exclusion of unpaid absence and a maximum of two years' wage. Article 53 states that wages and other entitlements must be paid within 14 days after the contract ends. Other work patterns are governed by the implementing regulations and require the correct contractual ratio.

Editorial and Calculation Review

How This Calculator Is Maintained

Prepared and reviewed by: ZeroSync Payroll and Accounting Team

Last legally reviewed: 22 July 2026

Method: Calculation rules are checked against current UAE Government and MOHRE sources. Test cases cover the one-year threshold, both service bands, partial years, unpaid leave, part-time adjustment and the two-year cap.

Corrections: If you identify a calculation or source issue, contact ZeroSync so the team can review and update the tool.

Update history

22 July 2026: Added step-by-step results, print/copy tools, worked examples, Article 51–53 references and clearer exclusions.

June 2026: Initial calculator and guidance published.

Payroll and Accounting Support

Services Connected to Your Gratuity Estimate

A gratuity calculator gives a quick estimate, but final settlement should be supported by clean payroll records, accounting entries, employee balances, and proper documentation. ZeroSync Accountants helps Dubai businesses connect gratuity calculations with accurate payroll, bookkeeping, and financial reporting.

Before Final Settlement

Information Needed for a Gratuity Review

For a more accurate gratuity or final settlement review, keep these records ready before contacting ZeroSync Accountants.

Employment contract
Joining date and last working date
Monthly basic salary
Gross salary and allowances
Unpaid leave records
Payroll history
Final settlement statement
Employee deductions or advances
Gratuity vs Final Settlement

What This Calculator Does Not Calculate

Gratuity is only one part of an employee's final settlement. Businesses should review the full payroll position before paying a leaver, recording the liability or closing an employee file.

Final settlement item Included in this calculator? What to review
End-of-service gratuity Yes, as an estimate Basic salary, service period, unpaid leave and cap
Unpaid salary No Days worked but not yet paid
Unused leave salary No Leave balance and payroll policy
Notice period compensation No Contract terms and termination date
Commissions or bonuses No Commission policy, approvals and cut-off date
Deductions and advances No Employee loans, advances or amounts owed to employer
Avoid Errors

Common UAE Gratuity Calculation Mistakes

Using gross salary instead of basic salary

Gratuity is commonly estimated using basic salary, while gross salary may include allowances and other components.

Ignoring unpaid leave

Unpaid leave can affect the eligible service period and should be reviewed before final settlement.

Forgetting part-time adjustment

Part-time arrangements may need proportional calculation depending on the contract and actual working pattern.

Confusing gratuity with final settlement

Final settlement may include other items such as unused leave, salary balance, deductions, notice, or benefits.

For Employees and Employers

Who Should Use This UAE Gratuity Calculator?

Employees can use the tool to understand a possible entitlement, while employers, HR teams and payroll professionals can use it to plan employee exits and gratuity provisions before a formal review.

For employees

Use the calculator to get a quick estimate before discussing your final settlement. Keep your employment contract, joining date, last working date and basic salary ready, then ask for a professional review if the result affects a dispute or negotiation.

For employers and HR teams

Use the calculator for planning only, then confirm the result against payroll records, leave balances, deductions and accounting entries before paying a final settlement or closing the employee account.

FAQs

UAE Gratuity Calculator FAQs

Answers to common questions about gratuity calculator UAE, end of service calculator UAE, final settlement calculation, and payroll support in Dubai.

What is a UAE gratuity calculator?

A UAE gratuity calculator is an estimate tool that helps employees and businesses calculate possible end-of-service gratuity using basic salary, joining date, end date, and service period.

Is this calculator an official MOHRE gratuity calculator?

No. This calculator is provided by ZeroSync Accountants as an educational estimate tool. It is not an official MOHRE calculator and does not replace a payroll, HR, or legal review.

How is gratuity calculated in the UAE?

For many private sector full-time cases, gratuity is commonly estimated using 21 days of basic salary per year for the first five years and 30 days of basic salary per year after five years, subject to eligibility and review.

Is UAE gratuity calculated on basic salary or gross salary?

UAE gratuity is generally estimated using basic salary. Gross salary may be useful for reviewing caps or other settlement items, but basic salary is the main figure used in this calculator.

Do I get gratuity if I worked less than one year?

In many common cases, employees with less than one year of service are not eligible for gratuity. Final entitlement should still be reviewed based on the contract and applicable employment rules.

Does this calculator include unused leave salary?

No. This calculator estimates end-of-service gratuity only. Unused leave salary, unpaid wages, notice compensation, bonuses, commissions and deductions may form part of your final settlement. Use our UAE Final Settlement Calculator to estimate those items.

Can this calculator be used for part-time employees?

Yes. The calculator includes an optional part-time work ratio field. The result remains indicative and should be reviewed against the employment contract and actual working arrangement.

What is the maximum gratuity in the UAE?

Under Article 51, the total end-of-service benefit for a foreign worker must not exceed two years' wage. This calculator applies a cap equal to 24 months of the last basic wage used in the estimate.

Can Dubai businesses use this tool for payroll planning?

Yes. Businesses can use the calculator to estimate possible gratuity liability before employee exits, payroll reviews, month-end reporting, or final settlement preparation.

What documents are needed for a final settlement review?

Useful documents include employment contract, joining date, last working date, salary details, payroll records, unpaid leave details, deductions, advances, and previous settlement records.

Can ZeroSync Accountants help confirm the calculation?

Yes. ZeroSync Accountants can help Dubai businesses review gratuity calculations, payroll records, bookkeeping entries, employee settlement data, and payroll reporting.

Should employees rely only on an online gratuity calculator?

No. Online calculators are useful for quick estimates, but final settlement should be reviewed against the employment contract, payroll records, applicable rules, and company documentation.

What is the difference between gratuity and final settlement?

Gratuity is only the end-of-service benefit component. Final settlement may also include unpaid salary, unused leave salary, notice compensation, commissions, deductions, advances and other employee balances.

When should gratuity be paid in the UAE?

Final payment timing should be reviewed against applicable UAE employment rules and contract terms. Official UAE guidance states that employers must pay outstanding wages, entitlements and gratuity within 14 days of the end of the employment contract.

Do DIFC employees use the same gratuity calculation?

DIFC employment arrangements may follow different end-of-service rules and should be reviewed separately. This calculator is designed for common UAE private sector gratuity estimates outside special regimes that require a separate method.

Need help confirming gratuity or payroll records?

Send your gratuity estimate to ZeroSync Accountants and our Dubai accounting team will help you review payroll records, final settlement data, and bookkeeping entries.

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