Gratuity Calculator — Free MOHRE End of Service Tool UAE 2026
Picture this: Your last day at work is approaching. HR hands you a final settlement document. A number is printed on it — your gratuity amount. You sign it.
But was that number correct?
Thousands of UAE workers sign their final settlements every month without ever verifying the figure. Some receive less than they are legally owed. Others do not even know what they should have received.
The Gratuity Calculator UAE was built specifically to solve this problem — giving every worker an instant, legally accurate estimate of their end-of-service entitlement before that document ever reaches their desk.
The Problem With Manual Gratuity Calculation
Ask ten UAE employees how gratuity is calculated and you will get ten different answers.
That is not their fault. The calculation genuinely changes depending on:
Whether your contract is limited or unlimited
Whether you resigned or were terminated
Whether your service crossed the one-year, three-year, or five-year threshold
Whether your dates fall just before or just after a calculation bracket changes
Miss any one of these variables and your final number is wrong. And in most cases, it is wrong in your employer's favor — not yours.
What Makes This Calculator Different
The MOHRE Gratuity Calculator at gratuitycalculatoruae.com applies the exact legal formulas issued by the Ministry of Human Resources and Emiratisation. It is not an approximation. It is not a general estimate. It mirrors the same calculation your HR department is legally required to perform.
What it delivers:
Legally accurate gratuity figures based on 2026 UAE Labour Law
Instant results — no waiting, no paperwork
Full breakdown showing how the figure was calculated
PDF report you can download and keep for your records
Zero cost — completely free to use
Four Things the Calculator Needs From You
🔹 Your Basic Monthly Salary
Not your total package. Not your gross pay. Your basic salary only — the fixed figure written in your employment contract. Housing allowance, fuel allowance, medical coverage, and performance bonuses are all excluded from gratuity calculations under UAE law.
🔹 Your Contract Type
Limited contract — has a defined start and end date. Under the updated 2026 law, this is now the only contract type issued in the UAE private sector. Unlimited contracts were officially phased out in February 2023.
Unlimited contract — had no fixed end date. No longer issued, but still relevant for workers whose service began before the law changed.
🔹 Your Reason for Leaving
Termination and resignation produce very different results in the early years of service. Employees who are terminated without cause receive full gratuity from year one. Those who resign receive a fraction until they cross the five-year mark.
🔹 Your Exact Service Dates
Day one of employment and your final working day. Do not approximate. The difference between 4 years 11 months and 5 years 1 month can change your daily calculation rate from 21 days to 30 days — a difference worth thousands of dirhams.
The Gratuity Formula Explained Simply
UAE Labour Law structures gratuity around a daily wage model:
Daily Wage = Basic Salary ÷ 30
This daily figure is then multiplied by the applicable number of days per year and your total years of service. Years of ServiceDays Applied Per YearLess than 1 year0 — no entitlement1 to 5 years21 daysMore than 5 years30 days
Real Example: Basic Salary: AED 7,000 | Service: 7 Years
First 5 years: (7,000 ÷ 30) × 21 × 5 = AED 24,500
Years 6 and 7: (7,000 ÷ 30) × 30 × 2 = AED 14,000
Total Gratuity: AED 38,500
Important: No matter how many years you work, your total gratuity cannot exceed 24 months of basic salary under UAE law.
Resignation vs Termination — Side by Side
Service PeriodResignedTerminatedUnder 1 yearNo gratuityNo gratuity1 to 3 yearsOne third of full amountFull amount3 to 5 yearsTwo thirds of full amountFull amountOver 5 yearsFull amountFull amount
This table alone explains why so many workers who resign early receive far less than colleagues who were let go at the same point in their career. The law treats these two situations very differently.
Coverage Across All UAE Emirates
One calculator. Seven emirates. Same rules everywhere.
Dubai ✓ Abu Dhabi ✓ Sharjah ✓ Ajman ✓ Ras Al Khaimah ✓ Fujairah ✓ Umm Al Quwain ✓
The MOHRE framework applies uniformly across the entire UAE. The only workplaces that follow different rules are those inside the DIFC and ADGM free zones, which operate under their own independent employment legislation.
Domestic Staff Are Covered Too
The gratuity entitlement extends beyond office and factory workers. Housemaids, live-in drivers, nannies, gardeners, and household cooks employed in private residences are also protected under UAE labour regulations after completing one year of continuous service.
For workers recruited through agencies, the gratuity responsibility often falls on the agency itself rather than the individual household employer.
When Can an Employer Legally Refuse to Pay?
Gratuity denial is only permitted under very specific circumstances defined in Article 139 of the UAE Labour Law:
Gross misconduct — Theft, fraud, falsification of documents, or any criminal act that leads to termination under Article 120.
Leaving without notice — Resigning without serving the contractual notice period.
Service under one year — No entitlement exists regardless of how employment ended.
Outside these three situations, withholding gratuity is illegal. Workers can file a complaint directly with MOHRE. Employers who fail to pay face financial penalties, legal proceedings, and potential trade license suspension.
Your Complete Final Settlement Checklist
Gratuity is just one component of what you are owed when you leave. Before signing anything, verify all of the following:
☑ Gratuity calculated correctly using gratuitycalculatoruae.com
☑ Outstanding salary for your last working period included
☑ Unused annual leave days encashed at your daily rate
☑ Return flight ticket provided if stated in your contract
☑ All additional contractual benefits accounted for
☑ Any legitimate deductions — loans or advances — clearly itemized
☑ Complete settlement received in writing before you sign
5 Mistakes That Reduce Your Gratuity
Mistake 1 — Using gross salary Always enter basic salary only. Gross salary includes allowances that are legally excluded from gratuity.
Mistake 2 — Approximating service dates Enter exact dates. One month can shift you into a completely different calculation bracket.
Mistake 3 — Wrong contract type selected Limited and unlimited contracts have different rules. Check your employment contract if you are unsure.
Mistake 4 — Not accounting for contract renewals Under Article 38, renewals count as continuous service. Your total gratuity accumulates across all contract periods without resetting.
Mistake 5 — Signing without verifying Never accept a final settlement figure without cross-checking it against an independent calculation first.
6 Actions to Take Before Your Last Day
Run your numbers through the UAE Gratuity Calculator at least two weeks before your final day
Download the PDF report and keep it with your employment documents
Compare your calculated figure against the HR settlement statement line by line
Raise any discrepancy in writing — not verbally
Confirm that your notice period has been fully served and documented
Do not sign the final settlement until every figure has been verified
Final Word
Your gratuity is money you earned — one working day at a time, over months and years of service. It belongs to you. The law says so.
Do not guess. Do not assume. Do not sign until you know.
Use the free Gratuity Calculator UAE today and walk into your final settlement knowing exactly what you are owed.
