Gratuity Calculator Dubai 2025 Guide

1. What Is Gratuity in the UAE?

Gratuity is a lump-sum payment you receive when leaving your job. It's based on tenure, salary, and contract type.

2. Who Is Eligible for Gratuity?

All full-time employees under a limited or unlimited contract are eligible after completing at least 1 year of service.

3. How Is Gratuity Calculated?

It's based on your basic salary—not total salary. Years of service and resignation/termination terms also affect the payout.

4. Basic Formula for Calculation

For 1–5 years: 21 days’ salary per year. After 5 years: 30 days’ salary per year (with limits). 

5. Limited vs. Unlimited Contract Rules

Under a limited contract, full benefits apply if the contract ends naturally. Early resignation may reduce the amount.

6. Sample Calculation: 3 Years of Service

Example: AED 5,000 basic salary 3 x 21 days = 63 days’ pay → ~AED 10,500 gratuity.

7. Gratuity Deductions & Exceptions

Unpaid leave, early resignation, or misconduct can reduce or cancel your gratuity benefits.

8. Know Your Rights in 2025

Gratuity is your legal right. Stay informed with UAE labor law updates to ensure you're compensated fairly.