Last updated: May 2026
Estimating gratuity after termination
If employment is terminated, gratuity may still be part of the final settlement depending on service length and circumstances. Employees should check basic salary, total years worked, unpaid salary, unused annual leave, notice period, and any deductions shown in the settlement. This calculator gives a rough estimate only. Termination disputes can be fact-specific, especially if there are deductions, unpaid leave, free-zone rules, or disagreement about the reason employment ended.
Example calculation
If your basic salary is AED 5,000 and you worked 6 years, estimate first 5 years at 21 days/year and the extra year at 30 days/year. Daily basic is AED 166.67, so estimate is about AED 22,500.
Common estimate rules
- Less than 1 year of service: commonly estimated as no gratuity.
- 1 to 5 years: commonly 21 days of basic salary per completed year.
- More than 5 years: commonly 21 days per year for the first 5 years, then 30 days per extra year.
- Total gratuity is generally capped and special cases may change the result.
FAQ
Can terminated employees receive gratuity?
Often yes if service requirements are met, but final entitlement can depend on the facts and applicable rules.
What should I compare in final settlement?
Compare gratuity, unpaid salary, unused leave, notice pay, deductions, and the dates used by the employer.
Is this legal advice?
No. It is a simple estimate to help you understand the numbers before checking official sources.