UAE gratuity calculator (end of service).
Estimate end-of-service gratuity in seconds using the UAE Labour Law formula for private-sector employees.
- Based on Decree-Law 33/2021
- Free & instant
- No sign-up needed
- First 5 years (21 days/year)AED 0
- After 5 years (30 days/year)AED 0
- Service counted–
- Daily basic wage (basic ÷ 30)AED 0
- Capped at 24 months’ basic salary
How UAE gratuity is calculated.
For private-sector employees with at least one year of continuous service, gratuity is based on the last basic salary. The daily wage is basic salary ÷ 30.
For each of years 1–5
21 days of basic wage for every year of the first five years.
For each year after year 5
30 days of basic wage for every additional year of service.
Maximum total
Total gratuity cannot exceed two years’ basic salary.
Worked example
Basic salary AED 10,000 · 7 years 6 months of service
| Step | Calculation | Amount |
|---|---|---|
| Daily basic wage | 10,000 ÷ 30 | AED 333.33 |
| First 5 years | 5 × 21 days × 333.33 | AED 35,000 |
| Remaining 2.5 years | 2.5 × 30 days × 333.33 | AED 25,000 |
| Estimated gratuity | Below the 24-month cap (AED 240,000) | AED 60,000 |
From estimate to final settlement.
Zapio HRMS brings gratuity together with the rest of the final settlement.
Automatic gratuity
Gratuity is calculated from the employee’s basic salary and service dates.
Leave encashment
Include unused leave balances in the final settlement.
Loans & advances
Recover outstanding loan and advance balances.
Outstanding salary
Add salary due for the final working days.
Settlement breakdown
A clear statement of every component for HR and the employee.
Linked to offboarding
Settlement is part of a structured exit checklist.
Calculate gratuity in four steps.
The same logic the calculator above uses.
- 1
Check eligibility
At least one year of continuous service is required.
- 2
Find the daily wage
Divide the last basic monthly salary by 30.
- 3
Apply 21 / 30 days
21 days per year for years 1–5, then 30 days per year.
- 4
Apply the cap
The total cannot exceed 24 months of basic salary.
Basic salary is what matters.
Gratuity is based on the last basic salary. Allowances such as housing and transport, and variable pay like overtime, bonuses and commission, are not included.
- IncludedLast basic monthly salary and continuous service.
- Not includedHousing, transport and other allowances, overtime, bonuses and commission.
- Partial yearsPaid pro rata once one full year of service is completed.
Let payroll calculate it for you.
When an employee leaves, Zapio HRMS brings gratuity, leave encashment, outstanding salary and loan balances into one settlement breakdown.
- No manual spreadsheetsService dates and salary come from the employee record.
- Everything in one statementGratuity, leave, salary and deductions together.
- Connected to WPS payrollFinal pay is processed with your payroll run.
For employees, HR teams and business owners.
Employees
- Estimate what you may receive
- Understand how it’s calculated
- Plan your next move
HR teams
- Check settlements quickly
- Explain the formula clearly
- Automate it in Zapio HRMS
Business owners
- Plan end-of-service liabilities
- Budget for upcoming exits
- Stay aligned with the law
For private-sector employees, gratuity is 21 days of basic wage for each of the first five years of service and 30 days of basic wage for each additional year. The daily wage is the last basic monthly salary divided by 30, and the total cannot exceed 24 months of basic salary.
Employees who complete at least one year of continuous service with the same employer are generally eligible. Gratuity may not be payable in specific cases set out in the law, such as dismissal for certain serious misconduct.
Gratuity is calculated on the last basic salary. Allowances such as housing and transport, and variable pay like overtime, bonuses and commission, are not included.
Yes. Once one full year of service is completed, partial years are paid in proportion to the time worked.
Unpaid leave days are generally excluded from the service period. The calculator lets you enter them so they are deducted.
Yes. Total gratuity cannot exceed two years’ (24 months’) basic salary.
The calculator follows the private-sector formula under Federal Decree-Law No. 33 of 2021. Government entities and some free zones have their own rules, so check with your employer or the relevant authority.
No. It provides an estimate only. For your exact entitlement, refer to your contract, your employer, MOHRE or a legal adviser.
Yes. Zapio HRMS calculates gratuity as part of end-of-service settlement, together with leave encashment, outstanding salary and loan balances.
Works even better together.
Every Zapio HRMS module shares the same employee records, so information flows without re-entry.
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