End of Service Calculator UAE 2025: Your Guide to Gratuity Calculation

Namaste dosto! If you’re working in the UAE and planning to leave your job or wondering about your end-of-service benefits, understanding how to calculate your gratuity is key. In the UAE, gratuity is a lump-sum payment you’re entitled to after completing at least one year of service, as per the UAE Labour Law (Federal Decree-Law No. 33 of 2021). In 2025, online tools and simple formulas make it easy to estimate your end-of-service gratuity. In this guide, I’ll walk you through how to calculate your gratuity, share the latest rules, and provide tips to ensure you get what you deserve. Let’s get started!

Why Calculating Your Gratuity Matters

Before we dive into the details, let’s talk about why knowing your gratuity is important. Your end-of-service gratuity is a financial reward for your years of service, helping you transition after leaving a job. Checking it helps you:

• Plan Your Finances: Know how much you’ll receive to budget for the future.

• Ensure Fair Payment: Verify your employer follows UAE Labour Law rules.

• Avoid Disputes: Spot calculation errors early to avoid conflicts.

• Understand Your Rights: Be clear on what you’re entitled to based on your contract.

Now, let’s explore how gratuity works and how you can calculate it in 2025.

UAE Gratuity Rules in 2025

Gratuity in the UAE is governed by Article 51 of the UAE Labour Law and applies to private-sector expatriate employees. UAE nationals are covered by separate pension schemes. Here’s a quick overview of the key rules:

Criteria	Details
Eligibility	Complete at least 1 year of continuous service.
Basis	Calculated on your last basic salary (excluding allowances like housing or transport).
Maximum Limit	Gratuity cannot exceed 2 years’ basic salary.
Exclusions	Unpaid leave days are not counted in service duration.
Payment Deadline	Must be paid within 14 days of contract end.

Gratuity varies based on your contract type (limited or unlimited) and whether you resign or are terminated. Let’s break down the calculations.

Gratuity Calculation for Limited and Unlimited Contracts

The UAE recognizes two types of contracts: limited (fixed-term) and unlimited (open-ended). The calculation differs slightly, especially for resignations.

1. Limited Contract Gratuity

For employees on fixed-term contracts, gratuity is calculated as follows:

Service Duration	Gratuity Entitlement
Less than 1 year	No gratuity
1–5 years	21 days’ basic salary per year
Over 5 years	21 days for first 5 years + 30 days per year thereafter

Example: If your basic salary is AED 5,000 and you worked for 7 years, the calculation is:

• First 5 years: (AED 5,000 ÷ 30) × 21 × 5 = AED 17,500

• Next 2 years: (AED 5,000 ÷ 30) × 30 × 2 = AED 10,000

• Total Gratuity: AED 17,500 + AED 10,000 = AED 27,500

2. Unlimited Contract Gratuity

For unlimited contracts, gratuity depends on whether you resign or are terminated:

Scenario	Service Duration	Gratuity Entitlement
Resignation	Less than 1 year	No gratuity
Resignation	1–3 years	1/3 of 21 days’ basic salary per year
Resignation	3–5 years	2/3 of 21 days’ basic salary per year
Resignation	Over 5 years	21 days for first 5 years + 30 days per year thereafter
Termination	1–5 years	21 days’ basic salary per year
Termination	Over 5 years	21 days for first 5 years + 30 days per year thereafter

Example (Resignation): If you resign after 4 years with a basic salary of AED 6,000:

• Daily Salary: AED 6,000 ÷ 30 = AED 200

• Gratuity: (AED 200 × 21 × 4) × 2/3 = AED 11,200

Example (Termination): If terminated after 4 years with the same salary:

• Gratuity: AED 200 × 21 × 4 = AED 16,800

How to Use an Online End of Service Calculator

Online gratuity calculators simplify the process. Here’s how to use one, like the MoHRE calculator or tools on sites like gratuitycalculatoruae.ae:

Steps to Use an Online Calculator

Step	Description
1	Visit a trusted calculator like www.mohre.gov.ae or gratuitycalculatoruae.ae.
2	Enter your last basic salary (exclude allowances).
3	Select your contract type (limited or unlimited).
4	Input your service start and end dates to calculate years of service.
5	Choose resignation or termination and click “Calculate.”

Why Use Online Calculators?
They’re fast, accurate, and account for UAE Labour Law rules. Always use trusted sites to avoid errors.

Key Considerations for Gratuity Calculation

• Basic Salary Only: Gratuity excludes allowances (housing, transport, etc.) unless specified otherwise.

• Continuous Service: Unpaid leave or absences without pay aren’t counted in your service period.

• No Gratuity for Misconduct: If dismissed for misconduct (e.g., theft, as per Article 120), you may lose your gratuity.

• Savings Scheme: Some employers opt for the voluntary Savings Scheme, where contributions go to investment funds instead of traditional gratuity. Check with your employer.

Tips to Ensure Accurate Gratuity

• Check Your Contract: Confirm your basic salary and contract type (limited or unlimited).

• Keep Records: Maintain copies of your contract, payslips, and employment dates.

• Use Official Tools: Stick to MoHRE or trusted calculators for accurate results.

• Talk to HR: Verify calculations with your employer to avoid disputes.

• Know Your Rights: If your employer delays payment, contact MoHRE at 600 590 000 or file a complaint.

Frequently Asked Questions (FAQs)

1. Who is eligible for gratuity in the UAE?
Expatriate employees in the private sector with at least 1 year of continuous service are eligible.

2. Is gratuity based on total salary?
No, it’s calculated on your basic salary, excluding allowances, unless your contract states otherwise.

3. What’s the maximum gratuity amount?
Gratuity cannot exceed two years’ basic salary, as per Article 51(6) of the UAE Labour Law.

4. Can I lose my gratuity?
Yes, if dismissed for misconduct under Article 120 or if you resign without proper notice (unless allowed by Article 121).

5. How soon must gratuity be paid?
Employers must pay within 14 days of your contract ending, as per MoHRE guidelines.

Final Thoughts

Namaste dosto! Calculating your end-of-service gratuity in the UAE for 2025 is easy with the right tools and knowledge. Whether you’re on a limited or unlimited contract, understanding your entitlement ensures you get what you’re owed. Use MoHRE’s online calculator or trusted platforms like gratuitycalculatoruae.ae, and double-check with your employer for accuracy. Keep your contract and payslips handy to avoid disputes. For more details, visit www.mohre.gov.ae or call 600 590 000. Stay informed and plan your financial future with confidence!