UAE Gratuity Calculator 2025 (MOHRE Updated)
Calculate your end-of-service benefits using our professional UAE Gratuity Calculator (2025 update). Compliant with the latest MOHRE and UAE Labour Law, offering detailed breakdowns for both limited and unlimited contracts
Gratuity Calculator
⚠️ Legal Disclaimer
Before using any UAE gratuity calculator, understand that these tools provide estimates based on current UAE Labour Law. For official results, Consult with legal professionals or relevant authorities.
Table of Contents
How to Use the UAE Gratuity Calculator
What You Need to Enter
To get accurate results from our UAE gratuity calculator, you’ll need the following information:
1. Your Basic Salary
Type your monthly basic pay only – don’t include housing allowance or transport money. For example, if you earn AED 15,000 total but AED 5,000 is housing allowance, enter AED 10,000.
2. Your Contract Type
Pick which matches your job:
- Limited Contract: Your contract has an end date (like 2-year contract). This is now the standard for all new contracts
- Unlimited Contract: No fixed end date in your agreement. (only for contracts signed before February 2022)
3. How Your Job Ended
Choose what happened:
- Termination: Company ended your job or contract finished naturally
- Resignation: You decided to quit
4. Your Work Dates
Enter your first day at work and last working day. The calculator counts your total service years and months for MOHRE-compliant calculations.
5.Understanding Your Results
Click calculate to see your total gratuity in AED, years of service, and monthly breakdown. Our UAE gratuity calculator automatically applies UAE legal limits and handles complex calculations based on private sector regulations.
Simple Gratuity Calculation Formula
Understanding these formulas will help you verify any UAE gratuity calculator results:
Limited Contract (For All New Jobs, 2024 and After)
If you worked 1-5 years:
Your Money = (Your Monthly Pay ÷ 30) × 21 × How Many Years You Worked
If you worked more than 5 years:
Extra Money = (Your Monthly Pay ÷ 30) × 30 × Extra Years After 5
What This Means:
- First 5 years: You get 21 days of pay for each year
- After 5 years: You get 30 days of pay for each year
Unlimited Contract (For Old Contracts, Before 2024 Only)
If you still have an old unlimited contract:
If Company Fires You:
- You get the same money as new contracts (no less money)
If You Quit Your Job:
- 1-3 years: You get only 1/3 of your money
- 3-5 years: You get only 2/3 of your money
- More than 5 years: You get all your money
Easy Examples – How Much Money You Get
Let’s see how our UAE gratuity calculator works with real examples:
Example 1: Worker in Dubai – 3 Years Job
Your Details: AED 10,000 monthly pay, worked 3 years, company fired you
Step 1: Find your daily pay
10,000 ÷ 30 = AED 333 per day
Step 2: Calculate your money
333 × 21 × 3 = AED 20,979
You will get: AED 20,979
Example 2: Worker in Abu Dhabi – 7 Years Job
Your Details: AED 15,000 monthly pay, worked 7 years, you quit (new contract)
Step 1: Calculate first 5 years
Daily pay: 15,000 ÷ 30 = AED 500
First 5 years: 500 × 21 × 5 = AED 52,500
Step 2: Calculate years 6 and 7
Years 6-7: 500 × 30 × 2 = AED 30,000
Step 3: Add both amounts
Total Money: 52,500 + 30,000 = AED 82,500
You will get: AED 82,500
Example 3: Worker with Old Contract Who Quit
Your Details: AED 12,000 monthly pay, worked 4 years, you quit job (old unlimited contract)
Step 1: Calculate normal amount
Daily pay: 12,000 ÷ 30 = AED 400 Normal amount: 400 × 21 × 4 = AED 33,600
Step 2: Apply penalty (you quit after 3-5 years)
Your money: 33,600 × 2/3 = AED 22,400
You will get: AED 22,400 (less money because you quit)
Different Places in UAE – Where You Work Matters
Dubai Workers
- Dubai Development Authority (DDA): Use normal UAE calculation
- DMCC Free Zone: You might get more money – check your contract
- Regular Companies: Follow MOHRE rules
Abu Dhabi Workers
- ADGM Free Zone: Special rules for bank workers
- Oil Companies: Often give more money than minimum
- Regular Companies: Follow MOHRE rules
Sharjah, Ajman, Fujairah Workers
- All follow the same UAE rules
- Free zones might have different rules
- Check your job contract
New Rules in 2024 – Important Changes
These important changes affect how every UAE gratuity calculator works in 2025:
New Savings Plan Option (Started 2023)
The UAE government made a new rule. Your company can now put money in a savings account for you instead of giving you one big payment at the end.
How the New Savings Plan Works:
- Your company puts money in a special bank account every month
- Less than 5 years: Company puts 5.83% of your salary
- More than 5 years: Company puts 8.33% of your salary
- Safe Banks: Lunate Investment and Daman Investments (approved July 2024)
- Good News: You get your money even if your company goes bankrupt
Why This is Better:
- Your money grows over time (like interest)
- Safe from company problems
- Government watches over your money
- You can keep investing after you leave job
Big Change About Contracts (Started January 2024)
Very Important: All new job contracts after January 1, 2024 must have an end date. No more unlimited contracts.
What This Means:
- New Workers (2024+): Your contract has an end date, you get same money if you quit or get fired
- Old Workers (Before 2024): If you still have unlimited contract, you keep it until you renew
When You Get Your Money
New rules say:
- Your company must pay you within 14 working days after your last day
- Maximum money you can get is 2 years of your monthly salary
- MOHRE (government office) helps solve problems for amounts under AED 50,000
Calculate All Your Final Money
Beyond basic gratuity, a comprehensive UAE gratuity calculator should include these additional payments:
What Money You Get
1. Gratuity Money (calculated above)
2. Holiday Money You Didn’t Use: (Monthly Pay ÷ 30) × Days You Didn’t Take
3. Notice Period Money (if your company didn’t give you notice)
4. Salary You Didn’t Get (if company owes you money)
5. Airplane Ticket (if your contract says company pays)
Complete Money Example
Worker Details: AED 18,000 monthly pay, worked 6 years, has 20 unused holiday days
Gratuity Calculation:
First 5 years: (18,000 ÷ 30) × 21 × 5 = AED 63,000 Year 6: (18,000 ÷ 30) × 30 × 1 = AED 18,000 Gratuity Total: AED 81,000
Holiday Money:
Holiday pay: (18,000 ÷ 30) × 20 = AED 12,000
All Your Money:
Total: 81,000 + 12,000 = AED 93,000
Special Types of Workers
House Workers (Maids, Drivers)
Different Rule: Must work at least 2 years (not 1 year like others)
Same Calculation: Use the same math formulas
Special Note: Live-in workers have special contract rules
Free Zone Workers
- JAFZA: Follow normal UAE rules
- DIFC: Bank workers get more money
- ADGM: Special rates for licensed companies
Different Job Types
Hospital Workers: May get training money too
Bank Workers: Usually get more money than minimum rule
Oil Company Workers: Often get extra benefits
The UAE government made a new rule. Your company can now put money in a savings account for you instead of giving you one big payment at the end.
Mistakes People Make – Don’t Do These
Avoid these common errors when using any UAE gratuity calculator:
Wrong Salary Calculation
✅ Count This in Your Basic Salary:
- Your main monthly pay
- Fixed money that contract promises
❌ Don’t Count This:
- House money (housing allowance)
- Transport money
- Yearly bonus
- Overtime pay
- Extra commission money
Wrong Service Time Counting
- Trial Period: Usually counts as work time
- Unpaid Leave: Might not count if too long
- Part-Time Work: Calculate based on hours worked
Wrong Contract Type
- New Workers (2024+): All have contracts with end dates
- Old Workers: Might still have unlimited contracts
How to Calculate by Hand – Easy Steps (Without the UAE Gratuity Calculator)
Step 1: Find Your Daily Pay
Daily Pay = Your Monthly Salary ÷ 30
Step 2: Count Your Work Days
- Years 1-5: 21 days for each year
- Years 6 and more: 30 days for each year
Step 3: Do the Math
Total Days = (21 × First 5 Years) + (30 × Extra Years) Your Money = Daily Pay × Total Days
Step 4: Check for Penalties (Old Unlimited Contracts Only)
- Apply penalty if you quit job
Step 5: Check Maximum Limit
Make sure total is not more than 2 years salary
Gratuity Formulas Summary Table
These formulas are automatically applied when you use any reliable UAE gratuity calculator.
| Years Worked | Days Per Year | Easy Formula |
| 1 year | 21 days | (Salary ÷ 30) × 21 × 1 |
| 2 years | 21 days | (Salary ÷ 30) × 21 × 2 |
| 3 years | 21 days | (Salary ÷ 30) × 21 × 3 |
| 4 years | 21 days | (Salary ÷ 30) × 21 × 4 |
| 5 years | 21 days | (Salary ÷ 30) × 21 × 5 |
| 6 years | 21+30 days | [(Salary ÷ 30) × 21 × 5] + [(Salary ÷ 30) × 30 × 1] |
| 7+ years | 21+30 days | [(Salary ÷ 30) × 21 × 5] + [(Salary ÷ 30) × 30 × 2] |
Online Calculators for Each City
Dubai Calculation Websites
- DDA Official Website: dda.gov.ae
- DMCC Calculator: For free zone workers
- Regular Companies: Use our UAE gratuity calculator or MOHRE calculation
Abu Dhabi Calculation Websites
- ADGM Calculator: For bank free zone
- Regular Calculator: MOHRE formula
Other Cities (Sharjah, Ajman, Fujairah)
- MOHRE Calculator: Works for all
- Free Zones: Check your specific zone website
When You Won’t Get Money
Company Can Say No Only For Serious Reasons
- Stealing: Taking company money or things
- Leaving Without Notice: Disappearing for 7+ days
- Criminal Activity: Police arrest for serious crime
- Big Safety Problems: Causing dangerous situations
Company Cannot Say No For These
- You didn’t do good work
- Small problems at work
- Boss doesn’t like you
- Company losing money
- Company closing down
Get Help with Hard Calculations
Here are some situations where the standard UAE gratuity calculator may not be sufficient:
When You Need Expert Help
- Complicated Pay: Many different allowances
- International Jobs: Working in different countries
- Company Refuses: They won’t pay you
- New Savings Plan: Investment fund calculations
Who to Contact for Help
MOHRE Support (for most cases)
- 📞 Phone: 600-590000 (Free Call)
- 🌐 Website: mohre.gov.ae
- 🕗 Hours: Sun–Thu, 8 AM – 3 PM
- 💰 Solves disputes under AED 50,000
City-Specific Support
- Dubai: dda.gov.ae
- Abu Dhabi: tamm.abudhabi.ae
- Sharjah: shjmun.gov.ae
- Free Zones: Visit your zone’s official site
Legal Help for Big Disputes
🆓 Free Advice: Some community centers offer help
💼 Over AED 50,000: Hire a labor lawyer
This easy UAE gratuity calculator guide uses official government rules updated for 2024-2025. All calculations follow Ministry of Human Resources and Emiratisation (MOHRE) formulas. For complicated situations, call MOHRE at 600-590000 or visit mohre.gov.ae
About the Authors: This comprehensive guide was prepared by UAE employment law specialists with over 15 years of experience in expatriate worker rights and MOHRE regulatory compliance. Our team regularly represents employees in gratuity disputes and stays current with evolving legal interpretations.
Expert-Answered Questions From UAE Employees
Your eligibility depends on contract type. Unlimited contracts require careful calculation of pro-rata benefits based on tenure, while limited contracts may offer different provisions. Many employers voluntarily provide enhanced gratuity for retention purposes—check your specific agreement.
Great news—gratuity always uses your final basic salary at termination. Every raise benefits you retroactively across your entire service period, maximizing your end-of-service payout.
Only contractually guaranteed bonuses qualify for gratuity calculations. Discretionary or variable bonuses typically don’t count unless specifically mentioned in your employment agreement.
No. UAE law distinguishes between performance-related termination (benefits maintained) and serious misconduct (potential forfeiture). Poor performance requires documentation but doesn’t constitute grounds for benefit loss.
Part-time employees receive identical legal protections. Benefits calculate based on your actual contracted salary and working hours, maintaining proportional fairness with full-time colleagues.
Some employers allow partial gratuity withdrawals, but these amounts are deducted from your final settlement. You cannot receive your complete gratuity until employment ends.