Mohre Online Gratuity Calculator UAE
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Mohre Gratuity Calculator
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What is the Online Gratuity Calculator UAE?
It is an online tool designed to help people accurately calculate the gratuity payment they are owed at the end of their employment. This end-of-service benefit payment is calculated in accordance with UAE Labour Law regulations. Eligibility generally begins after one year of continuous service, whether employees are terminated by the company or resign. This payment ensures that employees are fairly compensated for the time they have given to their employer.
Official UAE End of Service (EOS) Gratuity Calculator 2026
Ever wondered how much you’ve really earned after years of dedication in the UAE? There is no need to worry because we are here to help you. Our gratuity calculator is your dedicated problem solver. By entering a few basic details, you will quickly discover how much gratuity you are entitled to. Our indemnity calculator provides you with accurate information, eliminating the risk of errors and confusion.
Gratuity is a mandatory end-of-service benefit paid to employees by their employers upon completion of their service in the UAE. It is provided once the minimum qualifying service is completed, as a token of appreciation for the time spent working, in accordance with UAE Labour Law, Article 51. A primary concern is that many people do not know how to calculate gratuity in the UAE. These complexities often lead to employees missing out on essential benefits. Furthermore, manual calculation can lead to costly errors.
Eligibility: Which Employees Are Entitled to Gratuity in the UAE?
Having understood what a gratuity calculator is and the advantages of using this tool, it is essential to determine your eligibility. Not every worker in the UAE automatically qualifies; specific criteria must be met. The categories of employees eligible to receive gratuity in the UAE are outlined below:
- Expatriate Employees: Those who have completed at least one year of continuous service with a UAE-based employer.
- Contract Employees: Those hired on a temporary or fixed-term basis, depending on the specific terms of their employment contract.
- Part-time Workers: Eligible individuals whose service period and hours meet the minimum legal requirements.
- Domestic Workers: Eligible workers, though their gratuity formula differs from that of regular private-sector employees.
Advantages of Using an Online Calculator
It makes your gratuity calculation more accurate and helps you avoid common mistakes. Here are some benefits of using this tool:
- Correct Results: You can calculate your gratuity according to UAE Labour Law rules without common errors by using this free-zone calculator.
- Understand UAE Labour Law Rules: Better understand how UAE labour regulations affect your gratuity and final settlement.
- Time Saving: With the help of this tool, you can calculate your gratuity instantly without spending hours on manual calculations.
- Be Aware of Your Rights: As an employee in the UAE, this tool provides you with the accurate calculations you need.
Three Important Factors That Affect Gratuity in the UAE
The labor laws of the UAE provide precise guidelines for calculating gratuities, guaranteeing a uniform procedure and emphasizing the important variables that affect the gratuity amount. Employees can more precisely calculate their end-of-service benefits if they are aware of these provisions. The following is a summary of the primary factors:
In the UAE, employees were historically employed under either an unlimited or a limited (fixed-term) contract. An unlimited contract has no end date, whereas a limited contract is for a specific period and can be extended.
According to the recent updates to UAE law, employees are eligible to receive gratuity after completing one year of service with their employer. The employee’s probation period is always included in the total service period.
You might not be eligible for a gratuity if you are terminated for gross misconduct. If you worked less than five years for an employer and resigned under an unlimited contract, the gratuity is then calculated on a pro-rata basis.
How to Calculate Gratuity in the UAE?
In the UAE, gratuity is calculated based on the employee’s basic salary and their length of service. For a service period of less than five years, gratuity is calculated at 21 days of basic salary for each year of service. The gratuity computation varies for service durations exceeding five years.
For example, you would receive a gratuity equal to 21 days of your basic salary for each of the first five years of your employment, and 30 days of your basic salary for the sixth year. If an employee’s service extends to seven years, the gratuity for the additional two years will be based on 30 days of basic salary per year.
Here are some essential points to keep in mind:
- Breaks from Work: The gratuity amount can be affected by unpaid leaves; only the periods approved by the employer under Article 132 will be included in the calculation.
- Deductions by Employers: According to Article 135 of the UAE Labour Law, employers have the right to deduct loans, advances, and other recoverable amounts from the gratuity payment.
- Gratuity in Case of Death: In the case of an employee’s death after completing one year of service, the employer must pay the gratuity amount to the legal heirs of the employee, in accordance with Article 51.
Understanding How the UAE Gratuity Calculator Works
Manual financial calculations, especially regarding gratuity, are highly prone to errors. For this reason, we have created this online gratuity calculator UAE to help you determine exactly how much you will receive at the end of your service, without any worries. You simply need to follow these steps and provide a few important details. Before you can apply for your gratuity, you’ll need an active e-signature card to access MOHRE services.
By following the steps below, you will get your results instantly. Isn’t this easy and hassle-free? This free online gratuity calculator makes your life easier, saving you from the hassle of manual calculations and the frustration of potential errors.
Essential Steps for Precisely Calculating End-of-Service (EOS) Gratuity
Employers are required to pay gratuity to expatriate private-sector employees who have completed at least one year of service, in accordance with Article 51 of the UAE Labour Law. This calculation is simplified by our online UAE gratuity calculator, which requires only a few key details. Whether you are employed in Ajman, Umm Al Quwain, Ras Al Khaimah, or Fujairah, our system is designed to handle every federal mandate accurately. These detailed steps will guide you through using the online gratuity calculator effectively.
Complete Minimum Years of Service
The length of service is a crucial factor when it comes to the gratuity computation in the UAE. So, it is essential that the employee complete at least one year of continuous service. If your service year is less than one year, then the gratuity calculator UAE tool is not for you.
Consideration of the Basic Salary
Another important factor is your basic salary, excluding all allowances, following Article 134, while calculating the gratuity with the gratuity calculator UAE. If your gross monthly salary is AED 15,000, but your basic salary is AED 8,700, the gratuity will be calculated only on AED 8,700.
Identify Your Employment Contract Type
The UAE gratuity calculation formula also depends on the contract type of the employment. Whether it's a limited or an unlimited contract, this identification of contract type helps you to find your end-of-service benefit amount. So, be aware of your employment type.
Choose the Reason for Leaving
How an employee ends employment impacts the gratuity. Whether it's resignation or termination, your gratuity pay depends on it. Therefore, always choose the right reason to leave to get an accurate calculation.
Enter Your Total Service Period
Finally, you must provide your date of joining and your last day of work. These dates determine the total length of service, which is used in the gratuity formula to calculate your final payment accurately.
How Are Gratuity Eligibility Days Calculated?
Many employees wonder who exactly qualifies for gratuity in the UAE. It is essential to understand the eligibility criteria to ensure your claim is valid. Regardless of whether you work in Abu Dhabi, Sharjah, or Dubai, you are eligible for end-of-service gratuity if you meet the following conditions:
- Minimum Service Completion: You must have completed at least one year of continuous service with your employer. If you leave before this one-year mark, you are generally not entitled to any gratuity.
- Adherence to Notice Periods: For a proper exit, it is imperative that you have resigned while serving the required notice period (typically 30 to 90 days) or that you have been terminated in accordance with the law.
- Absence of Gross Misconduct: Under the current UAE Labour Law (Article 44, which replaced the older Article 120), an employee can be dismissed without notice for “gross misconduct” (such as forged documents, material loss to the employer, or being under the influence at work).
- Important Legal Note: While the old law (Article 120) often resulted in the total forfeiture of gratuity for misconduct, the New Labour Law (Federal Decree-Law No. 33 of 2021) has shifted this. In most cases of summary dismissal under Article 44, employees now retain their right to accrued gratuity, although they may lose their notice period pay.
Gratuity Calculation Formula
Now that you understand the steps for using the UAE gratuity calculator and the eligibility requirements, let’s examine the formula according to UAE Labour Law. The standard gratuity formula is as follows:
Gratuity = Basic Salary × Gratuity Days Per Year × Number of Service Years
The term “gratuity days per year” depends on both the contract type and your total length of service. Furthermore, the final calculation is influenced by the specific type of employment contract held. If this is still unclear, let’s break it down step by step for a deeper understanding.
1: In Case of Limited Contracts
The limited contract’s gratuity formula calculation is given below
For 1 to 5 Years of Service
Gratuity =(Basic Salary x 21 days x Service Years)/30
For More than 5 Years of Service
Gratuity =(Basic Salary x 30 days x Service Years)/30
2: In Case of Unlimited Contracts
For unlimited contracts, the end-of-service benefit rules differ between termination and resignation. Consequently, the gratuity calculation formula for each category varies, as detailed below.
For Resignation
| Service Period | Calculation of Gratuity |
| Resignation Before Completing 1 Year | Not eligible for gratuity |
| Resignation after 1 to 3 years | One-third of 21 days basic salary for each year of Service (Article 137) |
| Resignation after 3 to 5 years | Two-thirds of 21 days basic salary for each year of Service (Article 137) |
| Resignation after more than 5 years | 21 days basic salary per year for the first 5 years, and 30 days basic salary for each additional year |
For Termination
Service Period | Calculation of Gratuity |
Terminated Before Completing 1 Year | Not eligible for gratuity |
Terminated after 1 year but less than 5 years | 21 days of basic salary for each year of service |
Terminated after more than 5 years | 21 days of basic salary per year for the first 5 years and 30 days of basic salary for each additional year. (Article 132) |
Employment Contract Types in the UAE
It is very crucial to understand the recent changes in the UAE labour law related to employment contracts. The reason they are essential is that previously there were two types of contracts: limited and unlimited. Now, according to the new law, unlimited contracts have been completely suspended. All employees of the private sector now work under a limited contract. Let’s take a close look.
This agreement establishes a clear time frame for your role, usually ranging from two to three years. From the beginning of employment, this type of contract provides clarity and stability to the employee and employer. With the mutual agreement of the employee and employer, the limited contract can be renewed.
In the case of a renewal contract, salary and terms will be revised. Following the new law, employees who have completed more than one year of service can resign before the contract ends and still receive their full gratuity payment. Employees need to fulfill the notice period mentioned in the contract, which is usually 30–60 days.
As we discussed earlier, the unlimited contract, which had no fixed end date, was officially removed from the UAE labour law as of February 2023. Although an unlimited contract is no longer issued, many people still remember the old rules, which often creates confusion.
The biggest reason for this contract removal was an issue in calculating gratuity upon resignation. According to the old law system, if you resigned, your gratuity was heavily deducted, as discussed below:
For a service period of 1–3 years, an employee lost two-thirds of their gratuity.
For a service period of 3–5 years, an employee lost half of their gratuity.
When a limited contract is renewed, according to Article 38 of the UAE labour law, the renewed period is counted as part of the original contract for gratuity payment calculation purposes. Confusing? Let’s understand in simple words. The total service period, including the original and renewed contract periods, is added together even if your contract is renewed.
This means that with each renewal, your gratuity entitlement continues to grow seamlessly. It is recommended that employees keep a record of the contract start and renewal dates to make sure that their whole service period is recognized.
Comparison of Resignation vs Termination Gratuity Calculation
You understand the scenario for calculating gratuity upon resignation and termination. A bit confusing? No worries! Let’s make it easier for you through a detailed comparison table between resignation and termination.
Service Period | Gratuity on Resignation | Gratuity on Termination |
Before Completing 1 Year | Not eligible for gratuity | Not eligible for gratuity |
After 1 to 3 years | One-third of 21 days basic salary for each year | 21 days of basic salary for each year of service |
After 3 to 5 years | Two-thirds of 21 days basic salary for each year | 21 days of basic salary for each year of service |
After More Than 5 Years | 21 days basic salary per year for the first 5 years, and 30 days basic salary for each additional year | 21 days of basic salary per year for the first 5 years and 30 days of basic salary for each additional year |
Difference Between Limited and Unlimited Contract in the UAE
In simple words, the difference between a limited and an unlimited contract in the UAE is given below:
- In case of Resignation, the gratuity calculation is based on a fraction of basic salary, one-third or two-thirds of 21 days for the first few years.
- In case of termination, gratuity is calculated fully at 21 days per year for up to 5 years and increases after 5 years.
The following example scenario will make it easier to understand this better.
Example 1 |
Investment Banking Director |
Calculation |
Step 2:Calculate Gratuity Per Year |
Step 3: Calculate Total Gratuity |
Example 2 |
IT Technology Director |
Calculation |
Step 2:Calculate Gratuity for the first 5 years |
Step 3: Calculate Gratuity for Additional Years |
Comparison of Limited vs Unlimited Contract Gratuity
Do you find it difficult to understand gratuity in terms of contract type, service year, gratuity formula, and eligibility? Here is the more compact and easy-to-understand table to understand all these terms and their correlation with each other.
For Unlimited Types of Contracts
Service Years | Gratuity Formula | Eligibility |
1-3 Years | 1/3 x( Basic Salary x 21 x Years of Service) ÷ 30 | Eligible after completing one year of service |
3 to 5 Years | 2/3x (Basic Salary x 21 x Years of Service) ÷ 30 | Applies if the employee is terminated or resigns |
More than 5 Years | (Basic Salary x 30 x Years of Service) ÷ 30 | Full gratuity entitlement for continuous service |
For Limited Types of Contracts
Service Years | Gratuity Formula | Eligibility |
1 to 3 Years | ( Basic Salaryx21x Years of Service) ÷ 30 | Employee must have completed one year of service |
3 to 5 Years | ( Basic Salaryx21x Years of Service) ÷ 30 | Full 21 days for each year of service. |
More than 5 Years | (Basic Salaryx30 x Years of Service) ÷ 30 | Continuous service with no interruption required |
Maximum Limit on Gratuity
You have dedicated many years of service to your company in the U.A.E., either in Abu Dhabi or Dubai. You have worked hard, earned money, and now it’s time for the end-of-service benefits. But do you know that the UAE labour law puts a cap on the gratuity you can receive? The total gratuity you can get cannot exceed two years of your basic salary as per the UAE labour law. It is the maximum limit, regardless of how long you have worked. Let’s make it clearer and easier with an example.
Imagine you are an employee in an IT company in the UAE and have a basic salary of AED 40,000. According to this, two years of your basic salary would be AED 40,000 × 24 months = AED 960,000. This means it doesn’t matter how many years you work in Dubai or Abu Dhabi; your total gratuity payment will never exceed AED 960,000. When you calculate your gratuity using this EOSB calculator, also implement this rule.
When Can Gratuity be Denied in the UAE?
There are some specific situations where an employee in the UAE may legally have their gratuity withheld, according to Article 139. Those exceptional cases are discussed below:
Termination Due to Misconduct: Employees may be terminated for serious violations such as fraud, theft, breaking company rules, or any criminal offense that is against UAE Labour Law Article 120.
Early Resignation in a Limited Contract: If an employee quits before completing the full term of the limited contract or before reaching a tenure of 5 years, they may not be eligible for gratuity.
Resignation Without Proper Reason or Notice: If an employee resigns without providing any proper reason or notice as required under Article 121, gratuity may be withheld.
Employers have the legal right to refuse gratuity payment if any of the above conditions apply, as per UAE Labour Law.
What to Do If Your Gratuity is not Paid?
You have completed your job contract and contributed your hard work, so where is your gratuity? Gratuity payment is a legal requirement according to the UAE Labour Law, enforced by the Ministry of Human Resources and Emiratisation (MOHRE). Therefore, if the employer does not pay the gratuity to the employee, they can face serious consequences according to Article 53 of the Labour Law of the UAE.
You have the right, as an employee, to file a complaint with MOHRE if your gratuity is not received within 14 days after the end of your employment contract. Employers may face many penalties if they delay or refuse to pay the gratuity, which include:
- Employers face difficulty in hiring new employees
- Heavy fines to the employer on pending gratuity payments
- Trade license suspension
- Legal intervention through Labour Courts
Final Settlement Calculation in UAE: What You Should Know
Full and final settlement (FFS) is the total amount that is paid to the employee upon leaving a job, and it includes all payable dues, as given below:
Notice Period Pay (if applicable)
Unpaid Salary
End of Service Gratuity
Bonuses and Other Allowances
Deductions (instalments, loans, advances)
Unused Annual Leave
All these payable dues listed above are according to Labour Law Article 53. To do final settlement calculation in the UAE, you can use a salary checker for indemnity calculations to make this process easier.
How Domestic Workers' Gratuity Is Calculated in the UAE
The gratuity calculation formula for domestic workers in the UAE, such as housemaids, is different from other employees as per UAE Labour Law. You can use the domestic gratuity calculator to calculate accurate end-of-service benefits for this purpose.
Eligibility
Here is the eligibility criteria for domestic workers:
The last drawn basic salary is used as the basis for gratuity calculation.
Early Termination: If a domestic worker leaves before completing 5 years of service, the employer has the right to deduct a portion of gratuity in exceptional cases, as per Article 135.
Leave Encashment: Domestic workers are not eligible for encashment of unpaid leave in full and final settlement (FFS).
Gratuity vs Tip: What’s the Real Difference in the UAE
Do you think “Gratuity” and “Tip” are the same thing? Think again. Both feel like rewards for your hard work, but many people mix the two terms. In the following section, you will find the difference between them:
| Gratuity | Tip |
|---|---|
| A gratuity is the mandatory end-of-service benefit paid to employees for their long-term services under the UAE labour law. | It is a voluntary payment a customer gives to the employee for their service. Unlike gratuity, it is not a requirement of any labour law. |
| It is calculated based on the employee’s basic salary multiplied by the number of service years. | The amount of the tip totally depends on the choice of the customer and their satisfaction level. |
| At the end of employment, employers are legally required to pay this amount to the employee. | Employers have no role in this, and the tip is paid by the customer. |
| Mandatory to be paid to the employee after one year of service. | Tip is not compulsory or regulated; it is the customer’s choice. |
UAE Gratuity Guide: 9 Smart Ways to Maximize Your Gratuity
Your end-of-service gratuity is often the largest amount you will receive in your career in the UAE. Don’t take this chance for granted. You can use the right strategy and a clear understanding of the law to maximize your gratuity. The following are expert tips to increase your gratuity payment:
Before maximizing your gratuity, it’s essential to understand how your CTC structure impacts your final payout. Your basic salary percentage determines everything.
Maintain Proper Employment Record
For maximizing the gratuity, it is important to maintain proper files for a proper employment record. Also, make a habit of keeping a record of work permit, UAE labour card, offer letter, memo, salary slip, JD, contract renewal, and appointment letter. All these records will help you in gratuity calculation and legal matters.
Address Concerns Professionally
If you find any differences in your calculated gratuity and the figures given by the employer, it is crucial to raise the matter professionally. You should communicate in writing and keep all the records of the discussion. Also, clear communication will help you to resolve issues faster and maintain a positive relationship.
Clearance of All Company Dues
You should request an official clearance document from your employer, as it will help you know the amount you owed such as advances and loans. Once you get this clearance form, employers of any company in the UAE cannot deduct an additional amount from your gratuity pay and it remains as proof.
Estimate Your Gratuity
You can estimate the gratuity in advance before leaving the job with the gratuity calculator UAE available on our website. It will help you to compare the calculated amount with the final settlement and avoid any financial stress.
Consult with Legal Assistance
You can hire a UAE labour law expert if the situation becomes complicated or unresolved. With this help, you can recover your entitlement amount and protect your rights.
Follow Up Respectfully
You should follow up politely with HR management if your gratuity payment is delayed. If you don’t get any response from the employer, it's your right to escalate the issue to the Ministry of Human Resources and Emiratisation MOHRE or the UAE Ministry of Labour.
Serve the Required Notice Period
As per the UAE labour law, if your exit is good, no employer can deny your end-of-service benefits. It is recommended that you complete your required notice period of 30 days after resigning. Furthermore, make sure you perform well in the notice period, similar to your regular working days. If you complete notice period like this it will help you to receive your gratuity without any problem.
Understanding of the UAE Labor Law
It is recommended that every employee working in the UAE, whether in Dubai, Sharjah, or Abu Dhabi, should have a basic understanding of the UAE labour law. This awareness will help you in calculating the basic salary, daily wages, and understanding the terms of leaving the job and type of contract. Most importantly, it helps in understanding the UAE gratuity calculation methods and rules.
Carefully Review Your Employment Contract
Everything related to your job is outlined in your employment contract, including the company policies, basic salary, benefits, duration of contract, future promotion, and type of contract. The rules and end-of-service benefits are different in each job in the UAE. If you review your contract carefully, along with the latest UAE labour law will help you track your benefits and avoid conflicts.
4 Common Mistakes That Can Affect Your Gratuity Calculation
You have already learned how to calculate gratuity in the UAE. However, you need to avoid the following mistakes to ensure accurate results:
1. Misunderstanding the Role of Basic Salary
Misunderstanding the Role of Basic Salary one of the most common mistakes as employees mistakenly add gross salary in place of their basic salary while calculating the gratuity. You should always keep in mind that in the UAE, gratuity is calculated based on basic salary, excluding all allowances. So, if you enter the wrong figure for salary, it affects your gratuity calculation.
2. Lack of Awareness About Gratuity Rights
The formula of the MOHRE gratuity calculator depends on multiple factors, including basic salary, type of employment contract, total years of service, and reason for quitting the job. All of these factors are important, and a misunderstanding of any of them will result in inaccurate calculations and unnecessary discrepancies when you receive your payment.
3. Confusion About Contract Type
The gratuity formula differs based on whether your employment is under a limited or unlimited contract. If you are not clear about your contract type, or if you enter the wrong information into the end-of-service gratuity calculator, you will not get accurate outcomes. Make sure you clarify your contract type.
4. Wrong Employment Period Selection
The length of service plays a very important role in calculating gratuity. Therefore, if you enter the wrong date of joining or the last day of work, it can result in inaccurate calculations. Ensure that your duration of service is calculated correctly and keep in mind that you are eligible for gratuity only after completing one year of service.
Not knowing how to apply, even if you calculate correctly, many employees struggle with the application process. Follow our step-by-step guide to avoid delays and rejections.
Need a region-specific calculation? Select your location below to access our dedicated gratuity tools for Dubai, Abu Dhabi, Sharjah, and JAFZA, updated for the 2026 legal standards.
Frequently Asked Questions
Gratuity is the end-of-service benefit given to the employee by the employer at the end of their employment.
The formula for calculating the gratuity is given below:
Gratuity = Basic Salary x Gratuity Days Per Year x Number of Service Years
An expatriate employee who is working in the UAE, but not a resident of the UAE, is eligible for gratuity. The UAE nationals are eligible for a pension, not the gratuity.
An employee can calculate the gratuity with the help of a gratuity calculator online tool by entering the required details in it.
The gratuity calculator is an online tool that is designed to calculate the end-of-service benefits when employment ends. The user just needs to enter a few details, and this tool will provide accurate outcomes.
Yes, you can get the gratuity after the termination, but not if you were terminated due to serious misconduct.
Yes, if you resign from a job after completing one year of service and also complete the 30-day notice period, you can get the gratuity.
No, you don’t have to pay tax on the gratuity in the UAE; gratuity is tax-free.
Gratuity must be paid within 14 days from the last working day of the employee.
Employers can refuse to pay the gratuity if they find the employee in violation of labour law or guilty of misconduct.
Employees become eligible for the gratuity after completing one year of service in the private sector.
You need to enter the basic employment information, including details of salary, type of salary, and years of service. All this information ensures that this online gratuity calculator gives you accurate results.
Our gratuity calculator gives accurate results, as accuracy is our top priority. You just have to enter the accurate salary, start and end date of your job, and the type of contract and separation method.
The reliable calculators are updated whenever MOHRE updates the labour law.
Yes, the gratuity cannot exceed 2 years of basic salary, and this is the maximum limit on gratuity.
Yes, it is possible, you can withdraw your gratuity by requesting it from the employer according to the company policies. However, you can withdraw a limited amount of gratuity as an advance during your service.
Gratuity is calculated using 30 days of wages, after completing the required year of service.
Your resignation is totally dependent on the duration of the contract.
Yes, it is possible that you can resign after 6 months, but you will not receive the gratuity.
Yes, it is possible that you can resign after 6 months, but you will not receive the gratuity.
Conclusion
Conclusively, the gratuity calculator is specifically designed to facilitate employees in the UAE to calculate their end-of-service gratuity. With its help, you can know how much you are entitled to upon leaving the company. So, gratuity is an important element in calculating the end-of-service benefits.
One of the most important things you should keep in mind is that you must be aware of the UAE labour law, no matter where you are, whether in Dubai, Sharjah, or Abu Dhabi. Furthermore, your employment contract should align with these regulations.
You should also keep a detailed record of your employment and stay updated with the latest guidelines of MOHRE to maximize your gratuity.