Glossary
What is End-of-service gratuity?
The lump sum UAE private-sector employees receive when they leave.
End-of-service gratuity: definition
Gratuity is calculated on basic salary: 21 days per year for the first five years and 30 days per year after, capped at two years’ pay, for at least one year of service.
How can I check End-of-service gratuity for my site?
Estimate end-of-service gratuity under the UAE Labour Law (private sector).
Open the Gratuity calculator UAE (end of service)End-of-service gratuity: questions and answers
What is End-of-service gratuity?
Gratuity is calculated on basic salary: 21 days per year for the first five years and 30 days per year after, capped at two years’ pay, for at least one year of service.
What does End-of-service gratuity mean in simple terms?
The lump sum UAE private-sector employees receive when they leave.
How can I check End-of-service gratuity for my site?
Use the free Gratuity calculator UAE (end of service) from Webmaster.ae. Estimate end-of-service gratuity under the UAE Labour Law (private sector).
What is UAE VAT?
VAT was introduced in the UAE in 2018 at a standard rate of 5%, administered by the Federal Tax Authority. Some supplies are zero-rated or exempt.
How is gratuity calculated in the UAE?
Gratuity is based on your last basic salary. Divide the monthly basic salary by 30 to get the daily wage. You earn 21 days of basic pay for each of the first five years of service and 30 days for each year after that, pro-rated for part years. The total cannot exceed two years of basic pay.
Who is eligible for end-of-service gratuity?
Private-sector employees on full-time contracts who complete at least one year of continuous service. Free-zone employees follow their free zone’s rules, which are often similar; DIFC uses its own savings scheme (DEWS), and UAE and GCC nationals usually fall under pension schemes instead.
Worked example: 6 years on AED 9,000 basic
Daily wage is 9,000 ÷ 30 = AED 300. The first five years give 5 × 21 × 300 = AED 31,500. The sixth year gives 1 × 30 × 300 = AED 9,000. Total gratuity: AED 40,500.
When must the employer pay gratuity?
Within 14 days of the end of employment, together with other dues. If it is not paid, you can file a complaint with MOHRE.
Are these calculations based on UAE rules?
Where a UAE rule applies (VAT, labour law, mortgage limits) the tool follows it and names the source. Rules change, so confirm important figures with the relevant authority.
Is the gratuity calculator uae (end of service) free?
Yes. It is free with no sign-up and no usage limits for normal use.