Leaving a job in the UAE — whether by resignation, termination, or your contract simply ending — comes with one question everyone asks: how much gratuity am I actually owed? Use the calculator below to get your exact figure in seconds, or scroll past it for a full plain-language breakdown of the law behind the number.
Does MOHRE Have an Official Gratuity Calculator?
Not for most employees, and it's worth being precise about this since a lot of sites imply otherwise. The Ministry of Human Resources and Emiratisation (MOHRE) sets and enforces the law this calculator applies — Federal Decree-Law No. 33 of 2021 — but it doesn't publish a general public calculator for private-sector employees. We checked directly: the page you'd expect to find one at (mohre.gov.ae/en/end-of-service-calculator.aspx) doesn't exist.
MOHRE does host one official calculator — but it's specifically for domestic workers, who follow an entirely different law and formula (more on that below). For everyone else, this tool applies MOHRE's exact formula independently — it isn't an official government tool, and any site claiming to be "the MOHRE calculator" for standard employees is describing something that doesn't exist.
How Gratuity Is Calculated in the UAE
The formula comes from Article 51 of Federal Decree-Law No. 33 of 2021, and it's simpler than it first looks:
- Find your daily wage: your basic monthly salary ÷ 30
- First 5 years of service: 21 days' wage for every year
- Every year beyond 5: 30 days' wage for every additional year
- Add both together — that's your gratuity, capped at 2 years' basic salary no matter how long you've worked
Prefer not to do the maths by hand? Scroll back up and let the calculator do this automatically for your exact dates and salary.
Limited vs. Unlimited Contracts — What's the Difference?
Since February 2022, every new UAE private-sector contract is a Limited (fixed-term) contract. Under this system, your gratuity is the same whether you resign or your employer ends your contract — there's no penalty for resigning.
Older Unlimited contracts still exist for employees who haven't had their contract renewed since the reform. Under the old rules, resigning before 5 years reduced your gratuity: one-third if you resigned between 1–3 years, two-thirds between 3–5 years. Our calculator handles this automatically if you select "Unlimited (Old)" and "Resignation."
Free Zones: JAFZA, DMCC, DIFC — Same Rules or Different?
This is one of the most common points of confusion, and the answer depends entirely on which free zone you're in:
| Free Zone | Follows Standard Formula? | Notes |
|---|---|---|
| JAFZA | Yes | Same federal formula as the rest of the UAE |
| DMCC | Yes | Same federal formula as the rest of the UAE |
| DIFC | No | Uses DEWS (DIFC Employee Workplace Savings) — a monthly employer-funded savings scheme instead of lump-sum gratuity |
| ADGM | No | Has its own independent employment regulations, similar in spirit to DIFC |
If you're employed by a company registered in JAFZA, DMCC, or most other free zones, use the calculator above as normal. If your employer is registered in DIFC or ADGM specifically, ask your HR team whether you're enrolled in a savings scheme instead.
Is Gratuity the Same as My Full Final Settlement?
No — gratuity is one part of what you're owed, not the whole amount. Your full final settlement can also include:
- Any unpaid salary for days already worked
- Unused annual leave, paid out in cash (this calculator can add this in — use the "Include Unused Annual Leave Encashment" option)
- Notice period pay, if applicable
- Repatriation ticket costs, where your contract provides for one
Employers can also legally deduct amounts you owe them — outstanding loans or salary advances — from your final payout.
When Can an Employer Legally Deny Gratuity?
Gratuity is a legal right, but there are specific, narrow situations where it can be withheld:
- You're dismissed for serious misconduct under Article 120 (e.g. proven fraud, theft, or a serious breach of duty)
- You resign without completing your notice period and without a valid legal reason under Article 121
Outside of these specific cases, gratuity is a mandatory payment — employers can't withhold it simply because they'd rather not pay.
What Happens After You Calculate Your Gratuity?
Once you know your number, there are usually a few more things to sort out before your UAE exit is complete. If your employment is ending for good, you'll also need to cancel your UAE residence visa — your employer's PRO typically starts this once your final settlement is agreed. After cancellation, you're given a window to either leave the country or switch your status; see our guide on checking your visa cancellation grace period to avoid overstay fines. If you want to confirm your MOHRE work permit status is updated during this process, that's covered at https://howtoemirates.com/check-uae-work-permit-status/.
Nannies, drivers, housekeepers, gardeners, and other domestic staff are covered by a separate law — Federal Decree-Law No. 9 of 2022 — with a different formula (14 days' wage per year, not the 21/30-day split above) and a different payment deadline (10 days, not 14).
MOHRE does host an official calculator for this group specifically: use MOHRE's domestic worker calculator here.
This calculator applies to private-sector employees under Federal Decree-Law No. 33 of 2021. UAE government and public-sector employees are covered by a separate pension and end-of-service system administered by the General Pension and Social Security Authority (GPSSA), with different contribution rates and payout rules — this tool won't give you an accurate figure.
Frequently Asked Questions
Is gratuity calculated on basic salary or gross salary?
Basic salary only. Housing allowance, transport allowance, and any other allowances are excluded — even though they might make up a large part of your total monthly pay. This is the single most common source of confused expectations, since your gratuity will be lower than a calculation based on your full salary.
What happens if I'm at exactly 11 months of service?
You're not yet eligible. UAE law requires one full year (365 days) of continuous service before any gratuity is payable — 11 months and 29 days pays zero. Our calculator will tell you exactly how many more days you need if you're close to the threshold.
Does resigning reduce my gratuity, or only termination?
Under current law, on a Limited contract, no — resigning and being terminated (or your contract simply ending) produce exactly the same gratuity calculation. That old "resignation penalty" only ever applied to legacy Unlimited contracts, where resigning before 5 years of service reduces your payout (see the Limited vs. Unlimited section above). If you're on a Limited contract, either option in the calculator above gives you the same number.
Has my employer enrolled me in the new Savings Scheme instead?
Possibly. Since October 2023, MOHRE has allowed employers to opt into a voluntary "Savings Scheme" (Cabinet Resolution No. 96 of 2023), where your gratuity is invested monthly into an approved fund instead of paid as a lump sum at the end. If your employer has enrolled you, this calculator's estimate won't match your actual entitlement — check your enrollment status with HR.
What if my employer doesn't pay within 14 days?
Under Article 53, your employer must pay your full final settlement, including gratuity, within 14 days of your last working day. If they don't, you can file a free complaint directly with MOHRE via the MOHRE app, website, or call centre (600 590 000), or the general toll-free line (80060).
Does this apply if I'm asking about Qatar, Saudi Arabia, Bahrain, or India?
No — this calculator is built specifically for UAE law. Qatar, Saudi Arabia, Bahrain, and India each have their own separate gratuity/end-of-service rules with different formulas, so a UAE-based calculation won't be accurate for those countries.
Is this the same as a salary calculator?
No — this tool estimates your one-time end-of-service payout, not your regular monthly take-home pay. If you're looking to work out your ongoing salary breakdown, see our UAE Salary Calculator instead.
How does my daily wage relate to overtime pay?
The same basic-salary-÷-30 daily wage figure used here is also the starting point for overtime pay calculations (divide it further by 8 for your hourly rate).
