End of Service Calculator UAE
Leaving your job in the UAE? An End of Service Calculator UAE is the fastest way to estimate your gratuity payout, a mandatory benefit under Federal Decree-Law No. 33 of 2021 for employees with 1+ year of service. In 2025/2026, with no changes to the law, expats in Dubai, Abu Dhabi, or other emirates can calculate their end-of-service gratuity based on basic salary, contract type (limited or unlimited), and tenure—capped at two years’ pay. Whether you’re resigning after 3 years or terminated after 10, tools on Gcalculate.com deliver instant estimates, factoring pro-rata pay and exclusions like unpaid leave. This guide covers the End of Service Calculator UAE, key calculations, and expat-focused tips—ensuring you claim your full entitlement within 14 days of departure.
What Is UAE End of Service Gratuity?
End-of-service gratuity is a tax-free lump sum paid to private-sector employees in the UAE upon leaving a job, rewarding service of 1+ year. Per Article 51, it’s calculated on your last basic salary (excluding allowances, bonuses, or housing) and depends on contract type and exit reason. Key rules for 2025:
- Eligibility: 1+ year continuous service; less = no payout.
- Limited Contract: Full gratuity if terminated; reduced (0-2/3) if resigning.
- Unlimited Contract: 21 days’ salary/year (first 5 years), 30 days after, capped at 2 years.
- Payment: Due within 14 days; debts (e.g., loans) deductible.
Example: 5 years, AED 12,000 basic, unlimited contract = AED 42,000 gratuity.
How Does an End of Service Calculator UAE Work?
An End of Service Calculator UAE automates MOHRE-compliant calculations, using your basic salary, service years, contract type, and exit reason to estimate gratuity. It handles partial years (pro-rata) and deductions like unpaid absences.
Steps:
- Input basic salary (e.g., AED 10,000/month).
- Choose contract (limited/unlimited) and exit (resignation/termination).
- Enter start/end dates (e.g., Jan 1, 2021 – Dec 31, 2025 = 5 years).
- Output: Daily rate, gratuity breakdown, total (e.g., AED 35,000).
Formula (Unlimited Contract):
- Daily Rate = Basic Salary / 30.
- Gratuity = (Daily Rate × 21 × Years 1-5) + (Daily Rate × 30 × Years 6+), capped at 2 years’ salary.
Limited Contract:
- Termination: Full 21-30 days/year from year 1.
- Resignation: 0 (year 1), 1/2 (2-3 years), 2/3 (3-5 years), full (5+).
Example: AED 8,000 basic, 4 years, unlimited, termination:
- Daily: AED 266.67.
- Gratuity: 266.67 × 21 × 4 = AED 22,400.
Pro-rata for 4.5 years: Add 0.5 × 21 × 266.67 = AED 2,800, total AED 25,200.
UAE Gratuity Rates for 2025/2026
Gratuity is based on service length, capped at 2 years’ basic salary.
| Years |
Unlimited Contract |
Limited (Termination) |
Limited (Resignation) |
Example (AED 10k Basic) |
| 1 |
21 days |
21 days |
0 |
AED 7,000 |
| 2-3 |
21 days/year |
21 days/year |
10.5 days/year |
AED 14,000 (full) |
| 3-5 |
21 days/year |
21 days/year |
14 days/year |
AED 35,000 (5 years) |
| 5+ |
30 days/year |
30 days/year |
30 days/year |
AED 60,000 (2-yr cap) |
Cap: AED 240,000 for AED 10k basic. Part-time: Pro-rated by hours (e.g., 20 hours/week = 50%).
Gratuity Examples for Expats
For AED 15,000 basic salary:
| Scenario |
Contract |
Exit |
Years |
Calculation |
Total (AED) |
| Resignation |
Limited |
Resignation |
3 |
2/3 × 21 × 3 × (15,000/30) |
21,000 |
| Termination |
Unlimited |
Termination |
5 |
21 × 5 × 500 |
52,500 |
| Long Service |
Unlimited |
Termination |
7 |
(21 × 5 + 30 × 2) × 500 |
82,500 (capped at 360,000) |
Pro-rata for 3.8 years: Add 0.8 × 14 × 500 = AED 5,600 for limited resignation.
Calculate Your UAE Gratuity Now
An End of Service Calculator UAE is a must-have for expats in 2025/2026, delivering instant gratuity estimates—e.g., AED 22,400 for 4 years at AED 8,000 basic—under UAE Labour Law’s 21-30 days/year rules. On Gcalculate.com, input salary, tenure, and contract to plan your tax-free payout, whether resigning (reduced for limited contracts) or terminated (full from year 1). With a 2-year cap and pro-rata for partial years, verify your basic salary and dispute delays via MOHRE. Calculate now—share your years of service below and secure your financial exit!
FAQs
How Does an End of Service Calculator UAE Work?
Input basic salary (AED 8,000), contract type, years (4), and exit reason on Gcalculate.com; it calculates 21 × 4 × (8,000/30) = AED 22,400 for unlimited termination.
What’s the UAE Gratuity Formula?
Daily rate = Basic / 30; Gratuity = (21 days × years 1-5 + 30 days × years 6+) × daily rate, capped at 2 years’ salary—e.g., AED 45,000 for 6 years at AED 10k.
Who Qualifies for UAE End of Service Gratuity?
Employees with 1+ year continuous service; no payout under 1 year; unpaid leave deducted.
How Does Limited vs. Unlimited Contract Affect Gratuity?
Unlimited: 21 days/year (1-5), 30 after; Limited: Full on termination, 0-2/3 on resignation (1-5 years). Calculators adjust for exit reason.
Is There a Cap on UAE Gratuity?
Yes—2 years’ basic salary (e.g., AED 240,000 for AED 10k monthly).
How Are Part-Time Workers’ Gratuity Calculated?
Pro-rated by hours % of full-time (e.g., 24 hours/week = 60% of full-time gratuity)—calculators factor this.
When Should Gratuity Be Paid in UAE?
Within 14 days of termination; disputes via MOHRE hotline—employers face AED 5,000-50,000 fines.