UAE end-of-service gratuity calculator
Enter a basic salary and how long someone has been with you. The calculator applies the Labour Law formula and shows the figure. Nothing to sign up for.
Gratuity Calculator
UAE end-of-service estimate
Basic salary only. Housing, transport and other allowances are excluded.
Estimated gratuity
AED 19,600
Days accrued
74 days
Service
3.5 yrs
Illustrative estimate based on UAE Labour Law (21 days/yr for years 1–5, 30 days/yr after, capped at 2 years' wages). Not legal advice.
How UAE gratuity is calculated
Four things decide the number. Once you know them the arithmetic is straightforward, which is why disputes usually come from getting the inputs wrong rather than the maths.
Years 1–5
21 days of basic salary for each full year worked.
Beyond 5 years
30 days of basic salary for every year after the fifth.
Basic salary only
Housing, transport and other allowances do not count towards it.
Two-year cap
However long the service, the total cannot exceed two years' wages.
Worked example: An employee with a basic salary of AED 8,000 who leaves after 6 years accrues 21 days × 5 years + 30 days × 1 year = 135 days. At a daily wage of AED 266.67, that's roughly AED 36,000 in gratuity — well within the two-year cap of AED 192,000.
Gratuity, automated and audit-ready
Doing this by hand works fine until it does not. Someone uses total salary instead of basic, or counts a partial year as a full one, and now you are arguing about a number with a person who has already left. Lifeguard Payroll keeps a running provision for every employee, so the settlement is a document you print rather than a calculation you start.
- Live gratuity provision tracked per employee
- Automatic 21/30-day formula with the two-year cap
- Leave encashment and final dues included
- Settlement ready inside the 14-day legal window
Final settlement preview
End-of-service questions, answered
Anyone who has completed at least one year of continuous service. How the employment ended does not change the entitlement, so resignation, termination and a contract simply running out all qualify. The figure is worked out on the last basic salary, not the total package.
Two rates. For the first five years an employee earns 21 days of basic salary per year, and from year six onwards it becomes 30 days per year. The daily wage is the monthly basic divided by 30. Whatever the total comes to, it cannot exceed two years' wages.
Basic salary alone, and specifically the last one. Housing, transport, utilities and any other allowance are left out. This is the most common place calculations go wrong, because the number people remember is the total package.
Within 14 days of employment ending, along with any other final dues. That window is short if you are starting the calculation from scratch, which is the argument for keeping a provision that is already up to date.
This calculator and guide are for general information only and do not constitute legal advice. For complex cases, consult a qualified UAE labour-law professional.
Stop recalculating this every time someone leaves
Lifeguard Payroll holds a running gratuity provision per employee and builds the final settlement from it. Ask us to show you on your own headcount.
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