HRMS

Gratuity in the UAE

As per the UAE Federal Decree-Law No. 33 of 2021 and Article 51, gratuity is a monetary payment. If you have completed one year or more in a company, then you are eligible for it. After the completion of your service period, you'll get a lump sum. Use our gratuity calculator and instantly calculate your gratuity amount.

Illustration of a gratuity calculator with salary and percentage symbols

Gratuity Calculator

Output

Your Basic Salary: AED 0.00

Employment Period: 0 year 0 months and 0 days

#FromToDaysGratuity (AED)
1dd/mm/yyyyInvalid Date3650.00
2Invalid Datedd/mm/yyyy00.00

Total Gratuity You Should Receive: AED 0.00

Step-by-Step Process to Calculate Gratuity in the UAE

After at least one year of work in a company, you'll be eligible for gratuity. Days of unpaid leave aren't a part of the calculation. If the employee owes any outstanding amount, it'll be subtracted from the gratuity payment.

For the first five years of service, you'll get a wage of twenty-one days for each year. For each additional year after that period, you'll get 30 days of wages as gratuity.

Gratuity calculation Process:

1. Eligibility

If you have completed at least one year of service under the same employer, then you are eligible for gratuity.

2. Calculate Basic Salary

To calculate gratuity, you need to find out the basic salary. It must exclude additional allowances, bonuses, and other benefits.

3. Calculate Daily Wage

As the next part, calculate your daily wage. Find out your daily wage by dividing your annual basic salary by 365.

4. Calculate 21-Day Gratuity

As we know, for the first five years, 21 days of each year's basic salary will be calculated, so multiply the basic daily wage by 21. You'll get the gratuity correctly for each year.

5. Calculate 30-Day Gratuity

After the first five years of service, calculate your 30 days of basic salary for every additional year and get the gratuity for those years.

6. Calculate Total Gratuity

For the total gratuity, first, calculate it for the first five years. Now calculate the gratuity for the rest of the years and add them together.

Employers can exclude any kind of absence without pay during the employment period.

Due to this step-by-step process, you'll get the overview of the way gratuity is calculated in the UAE.

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Trusted by Teams Managing Final Settlements

Hear how HR and payroll teams use simple gratuity tools to improve clarity, reduce manual effort, and support employee exits with confidence.

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Aisha Rahman

HR Manager at NovaCare Clinics

Elate HRMS gave our team one place to manage payroll, attendance, and leave approvals. Month-end is calmer now, and employees get answers without waiting on HR.

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Omar Khalid

Operations Lead at GulfPoint Trading

The biggest change for us was visibility. Managers can see requests, attendance, and employee updates clearly, so follow-ups no longer get lost in spreadsheets or chat threads.

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Meera Thomas

People Director at Skyline Facilities

Implementation was smooth, and the platform quickly became part of our daily HR routine. It helped us reduce manual checks while giving employees a cleaner self-service experience.