UAE Gratuity Calculator MOHRE

1. UAE Gratuity Calculator MOHRE – 2025 Guide to End-of- Service Benefits In the United Arab Emirates, end-of-service gratuity is a legal entitlement for most expatriate employees. Understanding how to calculate gratuity accurately is essential for both employees and employers to ensure compliance with the UAE Labour Law and Ministry of Human Resources and Emiratisation (MOHRE) regulations. Our Gratuity Calculator UAE MOHRE helps you determine the exact amount you are entitled to receive upon completing your employment. This guide explains gratuity eligibility, the calculation method, and special cases such as JAFZA gratuity rules. What is Gratuity in the UAE? Gratuity is a lump sum payment given to employees who complete at least one year of continuous service. It is based on the employee’s basic salary and is calculated according to the UAE Labour Law. This end-of-service benefit applies to employees working under both limited and unlimited contracts in Dubai, Abu Dhabi, and other Emirates. Emirati citizens are covered under the National Pension Plan, so expatriate rules apply to foreign workers. Gratuity Eligibility in UAE Before using the online gratuity calculator UAE, you must check your eligibility: You must have completed at least one year of continuous service. Only basic salary is used in gratuity computation (allowances, bonuses, and overtime are excluded). Employees dismissed under Article 120 (misconduct) are not entitled to gratuity. Unpaid leave is excluded from service duration. Gratuity Calculation Rules – Limited Contracts For limited contracts under UAE Labour Law: 1–5 years of service: 21 days of basic salary per year. More than 5 years: 30 days of basic salary for each additional year. Resignation before contract completion may result in forfeiting gratuity unless the employer breaches the contract. Gratuity Calculation Rules – Unlimited Contracts For unlimited contracts, gratuity entitlement depends on whether you resign or are terminated:

2. If you resign: 1–3 years: One-third of 21 days’ salary per year. 3–5 years: Two-thirds of 21 days’ salary per year. More than 5 years: Full 21 days’ salary per year + 30 days for each additional year. If you are terminated: 1–5 years: Full 21 days’ salary per year. More than 5 years: 30 days’ salary for each additional year. Note: The total gratuity cannot exceed two years’ basic salary. JAFZA Gratuity Calculator – Special Free Zone Rules Employees working in the Jebel Ali Free Zone (JAFZA) may have gratuity calculated under specific free zone labor regulations. These rules can differ slightly from MOHRE’s, so always confirm your contract terms before calculation. How to Use the Online Gratuity Calculator UAE Using our end of benefits calculator UAE is quick and accurate: Step 1: Enter your basic monthly salary. Step 2: Choose your contract type– Limited or Unlimited. Step 3: Select the reason for leaving– Resignation or Termination. Step 4: Input your start and end dates of service. Step 5: Click Calculate to see your gratuity amount instantly. Example of UAE Gratuity Computation Scenario: Basic Salary: AED 10,000 Contract Type: Limited Service Duration: 3 years Reason: Termination Calculation: 21 days × (10,000 ÷ 30) × 3 = AED 21,000 Common Mistakes When Calculating Gratuity Including allowances or bonuses in the computation. Misunderstanding eligibility rules. Using incorrect dates for service duration.

3. Ignoring contract type differences. Why Use an Online Gratuity Calculator? Manual gratuity computation can be time-consuming and prone to error. Our UAE gratuity calculator MOHRE ensures: 100% accuracy based on updated labour laws. Instant results for both limited and unlimited contracts. Compatibility with Abu Dhabi, Dubai, and other Emirates. Key Takeaways Gratuity eligibility in UAE starts after one year of service. Calculation is based only on basic salary, not total pay. Contract type and reason for leaving greatly affect the payout. Special zones like JAFZA may have different rules. The maximum gratuity payment is capped at two years’ basic salary. Final Words Whether you are working in Dubai, Abu Dhabi, or JAFZA, knowing your end-of-service benefits is essential for financial planning. Use our online gratuity calculator UAE to get an accurate estimate and protect your legal rights under UAE Labour Law.