Legal Disclaimer: This calculator provides estimates based on Federal Decree-Law No. 33 of 2021. For official calculations, verify with your employer or MOHRE.

How to Use the UAE Gratuity Calculator: Step-by-Step Guide 2025

Our UAE gratuity calculator provides instant, accurate estimates of your end-of-service benefit in under 60 seconds. The calculator uses the official MOHRE formula—21 days of basic salary per year for the first 5 years, then 30 days per year thereafter—and automatically applies resignation penalties if applicable. Simply enter your basic salary, service years, and termination type to get your exact gratuity amount.

This guide walks you through each input field and explains how to interpret your results.

What You'll Need Before Starting

Gather these details (takes 2-3 minutes):

Step-by-Step Calculator Guide

Step 1: Enter Your Basic Monthly Salary

Field: "Basic Monthly Salary (AED)"

What to enter: Your fixed monthly basic salary in AED (without allowances)

Common mistakes to avoid:

• ❌ Don't enter your gross/total salary
• ❌ Don't include housing allowance
• ❌ Don't include overtime or bonuses
• ✅ Enter only the "Basic Salary" line from your contract

Example:

• Your payslip shows: Basic AED 8,000 + Housing AED 2,000 + Transport AED 500 = Total AED 10,500
• Enter: 8000

Why it matters: Using gross salary instead of basic inflates your calculation by 20-50%, giving you an incorrect estimate.

Step 2: Enter Your Employment Start Date

Field: "Employment Start Date"

What to enter: The date your employment contract officially began (not your first working day if different)

Date format: Select from calendar picker or enter as DD/MM/YYYY

Important: This is your contract start date, which includes probation. The calculator will automatically subtract probation period in the next step.

Example:

• Contract start: 1 January 2020
• First working day: 5 January 2020
• Enter: 01/01/2020 (contract start date)

Step 3: Enter Your Employment End Date

Field: "Employment End Date" (or "Expected End Date")

What to enter:

• If leaving: Your last working day or notice period end date
• If planning ahead: Expected departure date
• If contract expires: Contract expiry date

For different scenarios:

Step 4: Enter Your Probation Period

Field: "Probation Period (months)"

What to enter: Length of your probation period in months (typically 3 or 6 months)

Options:

• No probation (select "0 months")
• 3 months probation
• 6 months probation (maximum allowed by law)

Why this matters: Probation does NOT count toward gratuity service years. The calculator automatically:

1. Subtracts probation from your total employment duration
2. Calculates gratuity only on post-probation service
3. Shows you exactly how many years count for gratuity

Example:

• Contract start: 1 January 2020
• Probation: 6 months (ends 30 June 2020)
• End date: 31 December 2025
• Total employment: 6 years
• Gratuity-eligible service: 5.5 years (from 1 July 2020 to 31 Dec 2025)

Step 5: Select Your Termination Type

Field: "Termination Type"

Options:

1. "Employer Terminated Me" - Select if:

   • Your employer ended your contract
   • Your contract expired and employer didn't renew
   • You were made redundant/laid off
   • Company closed or restructured
   • Mutual separation agreement

2. "I Resigned" - Select if:

   • You voluntarily left your job
   • You submitted resignation letter
   • You declined contract renewal offer
   • You initiated departure

Why this is critical: This selection determines if resignation penalty applies:

Step 6: Review Your Results

The calculator instantly displays:

1. Total Gratuity Amount (AED)

• Your estimated end-of-service gratuity
• Displayed in large, easy-to-read format
• Based on MOHRE-compliant 21/30-day formula

2. Service Duration Breakdown

• Total years employed
• Probation period (excluded)
• Gratuity-eligible years (after probation)
• Years 1-5 calculation (21 days/year)
• Years 5+ calculation (30 days/year)

3. Calculation Details

• Daily wage: Basic salary ÷ 30
• Years 1-5 gratuity: Daily wage × 21 × years
• Years 5+ gratuity: Daily wage × 30 × years
• Resignation penalty applied (if applicable)
• Final amount after all adjustments

4. Resignation Penalty Notice (if applicable)

• Clear explanation of reduction percentage
• Amount forfeited due to early resignation
• What you would receive if employer terminated instead

Understanding Your Results

Sample Calculation Breakdown

Input:

• Basic salary: AED 10,000/month
• Start date: 1 January 2020
• End date: 31 December 2025
• Probation: 6 months
• Termination: Employer terminated

Calculator Output:

🎯 Your Estimated Gratuity: AED 52,500

📊 Calculation Breakdown:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Daily Wage: AED 333.33 (10,000 ÷ 30)

Years 1-5: AED 35,000
  (333.33 × 21 days × 5 years)

Years 5+: AED 10,000
  (333.33 × 30 days × 1 year)

Gross Total: AED 45,000
Resignation Penalty: AED 0 (employer terminated)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
FINAL AMOUNT: AED 45,000

What If You Resign?

Same inputs but selecting "I Resigned" with 6 years service:

🎯 Your Estimated Gratuity: AED 45,000

✅ Good News: After 5+ years of service, 
   resignation carries NO PENALTY!

You receive 100% of calculated gratuity.

But if only 3 years service:

🎯 Your Estimated Gratuity: AED 7,000

⚠️ Resignation Penalty Applied
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Full Calculated Amount: AED 21,000
Service: 3 years (1-3 year bracket)
Resignation Reduction: 66.67%
Amount Forfeited: AED 14,000
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
YOU RECEIVE: AED 7,000 (33.33%)

💡 If employer terminated you instead:
   You would receive AED 21,000 (3x more)

Advanced Calculator Features

What-If Scenarios

Use the calculator to explore different scenarios:

Scenario 1: "Should I wait to reach 3 years?"

• Current: 2 years 10 months service
• Calculate now vs. calculate at 3 years
• See difference in resignation penalty (33.33% vs 66.67%)

Scenario 2: "Should I wait to reach 5 years?"

• Current: 4 years 9 months service
• Calculate now (66.67% if resign) vs. 5 years (100%)
• Determine if waiting 3 months is worth it financially

Scenario 3: "Planning my resignation"

• Test different resignation dates
• Find optimal timing to maximize gratuity
• Account for notice period

Comparing Multiple Employment Offers

If job hunting while employed:

Calculate Current Job:

• Your current gratuity if you leave now
• Factor into job switch decision

Compare to New Offer:

• New salary vs. current gratuity forfeited
• Break-even analysis

Example:

• Current gratuity: AED 30,000
• New job pays AED 3,000/month more
• Break-even: 10 months (30,000 ÷ 3,000)

Common Calculator Questions

Q: Why is my result different from my employer's calculation?

Possible reasons:

1. Different basic salary used

   • You used gross; calculator needs basic only
   • Housing allowance incorrectly included

2. Probation period miscounted

   • You didn't subtract probation
   • Or entered wrong probation duration

3. Service dates differ

   • Your start date differs from contract date
   • Or end date calculation varies

4. Resignation penalty confusion

   • You selected wrong termination type
   • Or employer miscalculated penalty

Solution: Double-check all inputs and compare calculation breakdown line-by-line with employer's statement.

Q: Does the calculator include deductions?

No. The calculator shows your gross gratuity entitlement before any deductions.

Your actual payment may be reduced by:

• Outstanding employer loans
• Proven damages you caused
• Salary advances
• Authorized deductions in contract

These vary by individual and can't be calculated automatically.

Q: Is the calculator result legally binding?

No. The calculator provides estimates based on standard MOHRE formula. Your actual entitlement depends on:

• Your specific employment contract terms
• Any enhanced gratuity clauses
• MOHRE verification of service records
• Final settlement agreement

Use calculator for: Planning, estimation, verification of employer calculations

For official amount: Request written final settlement statement from employer

Q: Can I use this for domestic worker gratuity?

Yes. Domestic workers use the same calculation formula. Enter:

• Domestic worker basic salary
• Service duration (including probation)
• Termination type

The same 21/30-day rule applies.

Tips for Accurate Results

Next Steps After Using Calculator

1. Compare to Employer's Statement

Once you receive final settlement statement:

• Compare amounts line by line
• Verify daily wage calculation (salary ÷ 30)
• Check service years counting (post-probation only)
• Confirm resignation penalty applied correctly
• Question any unexplained deductions

2. File MOHRE Complaint if Discrepancy

If calculator shows significantly higher amount (>10% difference):

• Request written explanation from employer
• Document the discrepancy
• File MOHRE complaint with calculator screenshot and employer statement
• MOHRE will verify which calculation is correct

3. Plan Your Finances

Use calculator result to:

• Budget for post-employment period
• Plan repatriation or job search costs
• Evaluate job offers (factor in gratuity loss)
• Negotiate separation terms with employer

Related Resources

• How to Calculate Gratuity in UAE: Complete 2025 Guide
• UAE Gratuity Table 2025: Breakdown by Service Years
• Common Errors in Gratuity Calculations
• Daily Rate and Formula Used in Gratuity Calculation
• Gratuity Eligibility in UAE: Who Qualifies

For an instant end-of-service estimate, use our online gratuity calculator UAE.

Final Disclaimer: This calculator provides estimates for informational purposes. Actual gratuity depends on your employment contract, service records, and employer's final settlement calculation. For disputes, consult MOHRE at 600590000.