Question 1

What is the UAE gratuity calculator used for?

Accepted Answer

This calculator helps employees understand their approximate gratuity amount using the rules set out in UAE labour law and DEWS style contribution schemes in financial free zones. It provides a quick and convenient estimate for planning or discussions with HR.

Question 2

How is gratuity calculated in the UAE?

Accepted Answer

Gratuity is based on your last basic salary and your total years of service. The law uses twenty one days of basic salary for each year of service up to five years, and thirty days for each additional year.

Question 3

What is the minimum service requirement for gratuity?

Accepted Answer

Employees must complete one full year of continuous service.

Question 4

Do part time employees receive gratuity?

Accepted Answer

Part time gratuity follows a different proportional formula based on working hours. This calculator assumes full time employment.
 Part time employees should contact their HR team for an accurate calculation.

Question 5

What information do I need to calculate my gratuity?

Accepted Answer

You will need:
 • Your start date
 • Your last working date
 • Your basic monthly salary
 • Your jurisdiction (MOHRE, Free Zone, DIFC, ADGM)
 • Any unpaid leave days, if applicable

Question 6

Is gratuity based on basic salary only?

Accepted Answer

Yes. Allowances such as housing or transport are not included.

Question 7

Do free zones follow different gratuity rules?

Accepted Answer

Most free zones follow MOHRE rules, however some, such as DIFC and ADGM, use contribution based schemes instead of the standard gratuity system.

Question 8

Does resignation affect gratuity?

Accepted Answer

Under the current law, resignation does not reduce gratuity once the employee has completed the required service period.

Question 9

How accurate is the DIFC and ADGM estimate

Accepted Answer

DEWS style benefits depend on actual employer contribution dates, chosen investment fund, performance, switches and fees.
 This calculator uses generalized contribution schedules and assumed returns. For the exact balance, always check your DEWS account.

Question 10

Is gratuity capped?

Accepted Answer

Under MOHRE there is no cap, but certain free zones such as JAFZA or DMCC the limit end of service payments is equivalent of two years of salary.

Question 11

Does resignation affect Gratuity?

Accepted Answer

Under the updated UAE Labour Law for limited contracts, resignation does not reduce gratuity entitlement as long as the employee has completed one year of service.

Frequently Asked Questions (FAQ's)