Who the standard calculation is for
The general federal private-sector rule is mainly used for an eligible foreign worker who completes at least one year of continuous service. Domestic workers, UAE nationals, DIFC or ADGM arrangements, some free-zone regimes, part-time arrangements and participants in an alternative end-of-service savings scheme can follow different treatment.
Start with exact service dates
A date-based UAE gratuity calculator uses the joining date and last working date to measure service. This is better than typing a rounded value such as six years, because a worker may have six years and eight months or five years and eleven months, and those differences can change the wage-days used in the estimate.
First five years
Each eligible year within the first five years is valued at 21 days of basic wage. Monthly basic salary is converted to a daily figure using 30 days before the service allowance is applied. The calculation uses basic salary, not the whole salary package.
Service after five years
Each eligible year after the first five is valued at 30 days of basic wage. Once the first year has been completed, an eligible fraction of a later year can be calculated proportionally, which is why the calculator shows the first-five-year and after-five-year split.
Final settlement is wider than gratuity
A final settlement may also include unused leave encashment, notice pay, unpaid salary and deductions. These are shown separately so the user can see whether the result is mostly gratuity or another payroll item.
Details that can change the final settlement
Unpaid absence can reduce eligible service, a part-time arrangement can require prorating, and alternative end-of-service savings schemes can replace the usual gratuity approach. Legal exclusions or disputes are not something a public calculator can decide, so the result should be checked against the employer's documented final settlement.
Common questions
Frequently asked questions
Do allowances increase statutory gratuity?+
The general calculation uses basic salary, so housing, transport and other allowances are not included in the wage base used by the calculator.
Why should I use joining and leaving dates?+
Dates avoid a common mistake: rounding service to a simple number of years. The calculator converts the date range into service days and then applies the gratuity formula proportionally.
What is the maximum gratuity estimate?+
The general cap is two years of wage, although eligibility and the worker's actual circumstances still need checking.
Can unpaid leave reduce gratuity?+
Unpaid leave can affect eligible service. That is why the calculator includes unpaid leave days as a separate field instead of hiding the adjustment.
Is this a legal final settlement?+
No. It is a planning estimate to compare with employer paperwork. Actual entitlement can depend on contracts, scheme participation, legal exclusions and the applicable UAE jurisdiction.
Official source and scope
UAE Government: end-of-service benefitsRule period: Current published rules within the guide’s stated period and scope
Next scheduled review: 15 December 2026
The guide’s rule statements, scope and linked calculator were reviewed against the primary source shown on the page.
This guide explains general rules and does not replace personalised tax, financial, employment or legal advice. For exact filing, payroll, lending or compliance decisions, use the official source and professional guidance where needed.