UAE Gratuity Calculator (MOHRE & DEWS)
Approximate Gratuity:
AED 0.0
Mini breakdown:
Years of service, rule used (21 or 30 days/year)
Calculator assumption: This calculator assumes full time employment. If you are part time, please contact your HR department for a pro rata calculation.
Free UAE Gratuity Calculator
A simple and accurate tool to help you calculate your end of service benefits in the United Arab Emirates.
Just enter your start date, end date and basic salary to see your approximate gratuity amount instantly.
This calculator supports:
• UAE MOHRE gratuity
• Free zone rules
• DIFC and ADGM DEWS style contribution estimates
• Full time employment assumptions
Use this tool to understand what you may be entitled to receive when your employment ends.
What is gratuity in the UAE?
Gratuity, also known as end of service benefits, is a lump sum amount paid by employers in the UAE to eligible employees when their employment ends. It recognizes an employee’s service with the organisation and is required by UAE Labour law for most private sector employees. Gratuity is calculated using the employee’s basic salary, their total length of service and the reason for leaving the company.
Who is eligible for gratuity in the UAE?
Under Article 51 of the UAE Labour Law, expatriate private sector employees are eligible for gratuity once they complete at least one full year of continuous service with the same employer.
Emirati nationals may also participate in the new voluntary end of service investment scheme if enrolled by their employer.
Eligibility is affected by:
• Total service duration
• Employment type
• Jurisdiction (mainland, free zone or financial free zone)
• Reason for exit
What Factors Affect UAE Gratuity?
Several elements influence the final gratuity amount in the UAE. Your entitlement is shaped by the following:
• Type of employment contract
• Last basic salary received
• Total years and months of continuous service
• Whether the employee resigned or was terminated
• Any unpaid leave that reduces service length
• Rules of the specific free zone, if applicable
• Whether the employee is under MOHRE, a free zone, DIFC or ADGM
These factors ensure the calculation is fully aligned with UAE labour regulations.
How gratuity is calculated in the UAE (MOHRE)
For employees under MOHRE mainland rules and many free zones, gratuity is calculated as:
If service duration is between 1 and 5 years
Gratuity = Basic salary × 21 days × Number of years of service
If service duration is more than 5 years
Gratuity = (Basic salary × 21 days × 5 years) plus (Basic salary × 30 days × years after 5)
A cap applies that limits gratuity to a maximum of 24 months of basic salary.
DIFC and ADGM end of service benefits (DEWS style)
DIFC and ADGM do not follow the standard UAE gratuity formula.
Employers contribute a percentage of the employee’s monthly basic salary into an investment plan.
Typical contribution rates:
• 5.33 percent of monthly basic salary while service is within the first 5 years
• 8.00 percent of monthly basic salary after completing 5 years
Your gratuity in these jurisdictions is the accumulated balance of employer contributions plus investment returns, minus applicable fees.
This calculator provides an estimate based on contribution rules and assumed investment performance.
For your official balance, refer to your DEWS portal or your employer’s HR department.
Eligibility Conditions
To qualify for end of service benefits in the UAE, employees must meet a few essential conditions.
• One full year of continuous service is required before gratuity begins
• Calculations are based only on the basic salary, not total compensation
• Unpaid leave may reduce the length of service counted
• Certain types of dismissal can affect eligibility
• Gratuity must be paid upon lawful termination or resignation once conditions are met
These rules apply to most employees across the UAE except for some free zones with their own policies.
Example Calculation
Here is a quick illustration to help users understand how the calculator works.
Basic salary: AED 10,000
Years of service: 4
Daily wage: 10,000 divided by 30 = AED 333.33
Annual gratuity days: 21
Gratuity for each year: 333.33 multiplied by 21 = AED 7,000
Total gratuity: 7,000 multiplied by 4 = AED 28,000
Limited vs Unlimited Contracts (UAE 2021 law removed "unlimited")
The UAE moved all employment contracts to limited term agreements under the 2021 labour law changes.
However, some employees still have older contracts that use the previous unlimited format.
The calculator follows the standard gratuity rules set out for limited term contracts.
Employees with older arrangements can still use the tool to estimate their benefits since the core formula remains the same.
Step-by-Step Guide to Using Talent Shark Calculator
Using the calculator is simple and takes only a few seconds.
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Enter basic salary
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Select your first working day
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Select your last working day
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Choose contract context (MOHRE / free zone / DIFC / ADGM)
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Add any unpaid leaves (optional)
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Get instant breakdown
The tool provides a clear summary of your results for easy reference.
Disclaimer:
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Talent Shark has taken care to provide accurate and updated information in this gratuity calculator. However, all results generated by this tool are estimates only.
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Actual end of service benefits may differ based on contract terms, unpaid leave, internal HR policies, free zone rules, DEWS fund performance and contribution history.
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By using this calculator you agree that Talent Shark is not responsible for any differences between this estimate and your final settlement.
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For an exact calculation, always check with your company’s HR team or refer to your official DEWS account for DIFC or ADGM.
Frequently Asked Questions (FAQ's)
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.
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.
Employees must complete one full year of continuous service.
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.
You will need the following information to calculate your gratuity:
• Your start date
• Your last working date
• Your basic monthly salary
• Your jurisdiction (MOHRE, Free Zone, DIFC, ADGM)
• Any unpaid leave days, if applicable
Yes. Allowances such as housing or transport are not included.
Most free zones follow MOHRE rules, however DIFC and ADGM use the DEWS system instead of traditional gratuity. Under DEWS, employers make monthly contributions into an employee’s savings account. The contribution rate is five percent for the first five years and eight percent after five years. The final payout equals the total contributions plus any investment returns.
Under the current law, resignation does not reduce gratuity once the employee has completed the required service period.
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.
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.
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.