End-of-Service Gratuity Calculator UAE 2026: Real Examples
End-of-service gratuity in the UAE is 21 days of basic salary per year for the first five years, then 30 days. See 2026 real examples and how to calculate your entitlement.
How UAE end-of-service gratuity works in 2026
Under the UAE Labour Law, end-of-service gratuity is a lump-sum payment due when your employment contract ends. It is calculated only on your basic salary and paid by your employer. The rate is 21 days of basic salary for each of the first five years, then 30 days for every year after that. Part years are calculated proportionally.
Who qualifies for gratuity
You qualify if you have completed at least one year of continuous service with the same employer. Unlimited contracts and limited contracts both follow the same calculation. If you resign before completing one year, you receive nothing. If your employer terminates you without cause after one year, you still receive the full amount.
Real example: 4 years and 8 months
Ahmed earns AED 12,000 basic salary. He worked 4 years and 8 months. First calculate daily rate: 12,000 divided by 30 equals AED 400. For the first four years he receives 21 days times 4, which is AED 33,600. For the remaining 8 months he receives 21 days times 8 divided by 12, which is AED 11,200. Total gratuity: AED 44,800.
Real example: 7 years and 3 months
Sara earns AED 18,000 basic salary. She worked 7 years and 3 months. Daily rate is AED 600. For the first five years she receives 21 days times 5, which is AED 63,000. For the next two years she receives 30 days times 2, which is AED 36,000. For the final 3 months she receives 30 days times 3 divided by 12, which is AED 4,500. Total gratuity: AED 103,500.
How to claim your gratuity
Request a final settlement letter from HR before your last day. The payment must be made within 14 days of contract end. If payment is delayed, contact MOHRE through the MOHRE app or by calling 600 590000. Keep copies of your contract, salary slips, and Emirates ID. Disputes are handled by MOHRE labour courts at no cost to the employee.
Common mistakes to avoid
Never include housing or transport allowance in the calculation, as only basic salary counts. Confirm your contract states the correct basic salary figure. Some companies try to reduce the amount by claiming you resigned; always request the calculation in writing. Keep records of any unpaid overtime or leave encashment, as these are paid separately from gratuity.
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Frequently asked questions
Is gratuity paid on basic salary only?▾
Yes. Housing and transport allowances are excluded. Only the basic salary figure stated in your contract is used for the calculation.
What happens if my employer delays payment?▾
Contact MOHRE immediately. They will issue a notice and can take the case to labour court if payment is not made within 14 days.
Do unlimited contracts affect gratuity?▾
No. Both limited and unlimited contracts use the same 21-day and 30-day calculation rules regardless of contract type.
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