MundoKit

UAE gratuity calculator

Enter your last monthly basic wage, employment dates or agreed service days, and unpaid absence. This covers full-time foreign employees under the federal statutory scheme.

Inputs
AED
Exclude housing, transport and other allowances.
days
Example duration. Enter your agreed service days; this overrides date counting.
days
These days are excluded from the calculation.

Results

Estimated gratuity
AED 22,500.00
Service before unpaid absence
2190 days
Eligible service
6 years (2190 days)
Daily basic wage
AED 166.67
Two-year basic-wage cap
AED 120,000.00
Gratuity breakdown and service averages
ItemAmount
First five yearsAED 17,500.00
Service beyond five yearsAED 5,000.00
Before capAED 22,500.00
Cap reductionAED 0.00
Average per eligible service yearAED 3,750.00
Average per eligible service monthAED 312.50
  • Part years are included proportionally after the one-year eligibility threshold.
  • Averages are allocation figures, not monthly payments or a forecast of future accrual. Excludes lawful deductions, unpaid salary, leave cash-out and notice pay.
  • Not for UAE nationals, domestic workers, government employment, DIFC/ADGM rules, part-time work or the alternative savings scheme.

Results update as you type. The share link stores your inputs after the # in the address, which is not sent to our server, but anyone you send it to can read them.

This is a general estimate for information only, not tax, legal or financial advice. Real rules have more conditions than a calculator can show, so check the official source below or a qualified professional for your situation.

Last checked 2026-11-14. Rules change, sometimes at short notice. We list the date we last checked each official source; confirm with the official government source before you travel, buy or file. This is general information, not legal or immigration advice.

How it works

Choose the employment scheme and date or manual-days mode first. Date mode counts both first and last working days, using calendar days including leap days, and shows the derived total before unpaid absence. This is an explicit counting convention; choose manual days to override it with an agreed duration. Prefilled values are examples.

Article 51 provides gratuity after at least one eligible year: 21 days of last basic wage for each of the first five years, then 30 days per later year. Fractions count proportionally, unpaid absence is excluded, and the total is capped at two years of basic wage. Article 67 defines a year as 365 days and a month as 30 days.

Years = (service days − unpaid days) ÷ 365
Gratuity = min(24 × monthly basic, monthly basic ÷ 30 × [21 × min(years, 5) + 30 × max(years − 5, 0)])

The result is zero below one eligible year. Intermediate values are not rounded; displayed money uses two decimals. Service averages allocate the final estimate across eligible years or months and are not payments.

Use the federal statutory scheme only. Alternative savings schemes, special jurisdictions, other work patterns and final-settlement additions require separate treatment.

Worked examples

Six eligible years at AED 5,000 basic

2,190 service days with no unpaid absence gives six years. The first tier is AED 17,500 and the later tier AED 5,000, giving AED 22,500 total. The average is AED 3,750 per service year or AED 312.50 per service month.

Unpaid absence removes half a year

At AED 3,000 basic, 730 service days less 183 unpaid days leaves 547 eligible days. Gratuity is 3,000 ÷ 30 × 21 × 547 ÷ 365 = AED 3,147.12.

Frequently asked questions

Do I enter total salary or basic wage?
Enter the last basic wage. Exclude allowances such as housing and transport.
Do the first five years become payable at the higher rate?
No. The higher tier applies only to service beyond five years.
Is gratuity the entire final settlement?
No. The result excludes salary arrears, notice pay, unused leave and lawful deductions.
Can I use this for DIFC or a savings scheme?
No. Select another scheme to see the scope message. This model is restricted to the federal statutory full-time foreign-worker scheme.
How are employment dates counted?
Date mode counts both endpoints: the same first and last date is one day. Manual-days mode overrides that convention. Unpaid days are then removed and eligible days divided by 365.

Sources

Last reviewed 2026-11-14; next review due by 2027-01-15. The method is written out above so you can check our math.