Last updated: July 18, 2026 | Educational estimate | Not legal advice
UAE gratuity calculation basics
For many private-sector estimates, UAE gratuity starts with two practical inputs: the employee's basic salary and the length of continuous service. UAE Government guidance says end-of-service gratuity for foreign private-sector workers is calculated on the last basic salary and excludes allowances such as housing and transport.
A common simplified estimate uses 21 days of basic salary for each completed year during the first five years, then 30 days of basic salary for each additional year after five years. Special cases, unpaid leave, contract details, free-zone rules, and disputes can change what should be checked before relying on a final number.
Example calculation
Example only: if basic salary is AED 6,000, the simple daily basic wage is AED 200 when divided by 30. For three completed years of service, a rough 21-day estimate is 21 x AED 200 x 3 = AED 12,600.
Records to check first
- Employment contract and basic salary figure.
- Joining date, last working date, and written notice dates.
- Unpaid leave or absence records, if any.
- Employer final-settlement breakdown and any written calculation.
- Salary certificate or payslips showing basic salary separately from allowances.
If your estimate and employer number differ
Do not compare only the final total. Put the employer calculation beside your own worksheet and check the basic salary used, daily wage method, completed service period, unpaid leave records, notice-period dates, deductions, and any cap or special-case note.
If one input is unclear, use the final settlement calculator, notice-period checklist, unpaid-leave checklist, and salary certificate checklist to isolate the mismatch before signing or escalating.
Official source check
Use this page and calculator as a worksheet, then compare the result with official guidance and your own employment documents before acting. Source links checked July 18, 2026.
- UAE Government end-of-service benefits page
- MoHRE worker rights guidance
- MoHRE labour complaints service
FAQ
Is UAE gratuity based on basic salary?
For many private-sector estimates, UAE Government guidance says end-of-service gratuity is calculated on basic salary and excludes allowances such as housing and transport.
What records should I check before estimating gratuity?
Check the employment contract, basic salary evidence, joining date, last working date, unpaid leave records, final-settlement breakdown, and any written employer calculation.
What should I check if my own estimate differs from the employer calculation?
Compare the basic salary used, daily wage method, completed service period, unpaid leave records, notice-period dates, deductions, and the written final-settlement breakdown before accepting or escalating the difference.
Can this calculator replace legal advice?
No. It gives an educational estimate only. For disputes, unusual contracts, free-zone issues, or formal action, check official guidance or speak to a qualified professional.
Use the free UAE gratuity calculator