Updated for 2026 UAE Labor Law
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Online Mohre Gratuity Calculator UAE - 2026

Calculate Your End of Service Benefits Instantly - 100% Free & MOHRE Compliant

MOHRE Compliant
Instant Results
Secure & Private
AED
Basic salary only (excluding allowances)
Note: For unlimited contracts, gratuity upon resignation depends on years of service:
  • Less than 1 year: No gratuity
  • 1-3 years: 1/3 of gratuity
  • 3-5 years: 2/3 of gratuity
  • 5+ years: Full gratuity

What is Gratuity in UAE?

Understanding your end of service benefits under UAE Labor Law

Gratuity is the end-of-service benefit that every employee in the UAE is entitled to receive upon completion of their employment contract. It is a mandatory payment regulated by UAE Labor Law (Federal Decree-Law No. 33 of 2021).

Eligibility

Applies to all employees who complete 1+ year of continuous service

Calculation Basis

Calculated based on basic salary only (allowances excluded)

Maximum Limit

Maximum gratuity cannot exceed 2 years' total salary

Free Zone Rules

Different rules for DIFC, ADGM, and other financial free zones

How to Calculate Gratuity in UAE

The official formula based on UAE Labor Law

For 1-5 Years of Service
(Basic Salary ÷ 30) × 21 days × Years

21 days' basic salary per year of service

After 5 Years of Service
(Basic Salary ÷ 30) × 30 days × Years

30 days' basic salary per year of service

Example Calculation

Employee: AED 10,000 basic salary | 7 years of service

  • First 5 years:(10,000 ÷ 30 × 21) × 5 = AED 35,000
  • Next 2 years:(10,000 ÷ 30 × 30) × 2 = AED 20,000
  • Total Gratuity:AED 55,000

Gratuity for Different Contract Types

Understanding unlimited vs limited contracts

Unlimited Contract

  • No fixed end date
  • 1-3 month notice period
  • Can be terminated by either party
  • Gratuity depends on resignation or termination
Learn More

Limited Contract

  • Fixed duration (1-3 years)
  • Ends on specified date
  • Early termination may require compensation
  • Full gratuity at contract end
Learn More

Calculate Gratuity by Emirates

Location-specific calculators for all UAE Emirates

Dubai
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Abu Dhabi
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Sharjah
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Ajman
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Ras Al Khaimah
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Fujairah
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Umm Al Quwain
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Free Zone Specific Calculators
DIFCADGMJAFZADMCCView All 45+ Free Zones →

Frequently Asked Questions

Gratuity in UAE is calculated based on your basic salary and years of service. For the first 5 years, you receive 21 days of basic salary per year. After 5 years, you receive 30 days of basic salary per year. The maximum gratuity cannot exceed 2 years of total salary.

No, gratuity is not taxable in the UAE. The United Arab Emirates does not impose personal income tax, so your entire gratuity amount is yours to keep.

Yes, you can get gratuity if you resign, but for unlimited contracts, the amount depends on your years of service: Less than 1 year = no gratuity, 1-3 years = 1/3 of gratuity, 3-5 years = 2/3 of gratuity, 5+ years = full gratuity.

The maximum gratuity amount in UAE cannot exceed 2 years of your total salary. This cap applies regardless of how many years you have worked.

Most free zones follow the standard UAE Labor Law for gratuity. However, DIFC and ADGM have their own employment laws with different gratuity calculations. Our calculator supports all major free zones.

Only your basic salary is used for gratuity calculation. Allowances such as housing, transport, utilities, and any other benefits are excluded from the calculation.

You need to complete at least 1 year of continuous service to be eligible for gratuity under UAE Labor Law. Part-time workers may have different rules based on their contract.

According to UAE Labor Law, employers must pay gratuity within 14 days of the employment end date as part of the final settlement.

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