How to Calculate End of Service Gratuity in Dubai

Dubai, the city of shimmering skyscrapers and boundless ambition, also boasts a dynamic work environment where dedication is duly rewarded. One such reward is end-of-service gratuity, a financial treasure chest waiting to be unlocked at the end of your employment journey. But navigating the calculation can feel like deciphering hieroglyphics in the desert sun. Fear not, intrepid employee! This comprehensive guide equips you with the knowledge and tools to confidently claim your rightful gratuity in Dubai.


Your Basic Salary:

Employment Period:


# From To Days Gratuity
Total Gratuity You Should Recieve

Who Deserves the Golden Sands? Eligibility Demystified

Rejoice! Most private-sector employees in Dubai, regardless of contract type, are entitled to gratuity after completing one year of service. This includes those on both limited and unlimited contracts, ensuring financial security even when your path with a company diverges. So, breathe a sigh of relief, even if your time with an employer has an endpoint.

Unearthing the Formula: Cracking the Gratuity Code

Calculating your gratuity is like embarking on an Arabian treasure hunt, with your basic salary and years of service serving as your trusty map and compass. Here’s the key to unlocking your financial reward:

  • Basic Salary: This is your fixed monthly pay before any deductions, the foundation upon which your gratuity is built.
  • Years of Service: This includes the full years you’ve diligently served, as well as any fractional months to your credit. Every drop of effort counts!
  • Gratuity Days per Year: This depends on your length of service, like a shimmering oasis in the desert:
    • First 5 Years: You deserve 21 days of your basic salary for each year, a well-earned reward for laying the groundwork.
    • Beyond 5 Years: The bounty increases! You’re entitled to 30 days of your basic salary for each year, a testament to your continued dedication.

Charting Your Course: The Gratuity Equation for All Journeys

Now, for the grand reveal! To calculate your gratuity, simply follow these steps:

  1. Identify your total years of service: Include both full years and any fractional months served (divide the number of months by 12).
  2. Separate your service into two periods: The first five years and any years beyond that, like navigating different terrains on your treasure hunt.
  3. Calculate the gratuity for each period:
    • First 5 Years: Multiply your basic salary by 21 days and then by the number of years in this period. Divide the result by 30 (number of days in a month).
    • Beyond 5 Years: Multiply your basic salary by 30 days and then by the number of years exceeding five.
  4. Add the gratuity amounts from both periods: This is your total end-of-service treasure, the culmination of your hard work and dedication!


  • Partial Years Count: Don’t be discouraged if you haven’t completed a full year. Your gratuity is proportionally calculated for any fractional months served, ensuring fairness for all journeys.
  • Capped Maximum: While your efforts deserve boundless rewards, your gratuity cannot exceed two years’ worth of your basic salary. A treasure chest overflowing with gold, but not without its limits.

Empowering Resources for a Smooth Journey:

No need to navigate the gratuity desert alone! These resources are your trusty camels:

  • Dubai Development Authority’s Online Gratuity Calculator: A user-friendly oasis that guides you through the steps and delivers your personalized gratuity estimate.
  • Ministry of Human Resources and Emiratisation (MoHRE) Website: This official platform provides detailed information on UAE labor laws, including gratuity regulations, like a map to the legal landscape.

Top Tips for Claiming Your Gratuity with Confidence:

  • Maintain meticulous records: Keep copies of your employment contracts, payslips, and any relevant documents to ensure accurate calculations.
  • Seek clarity from your employer: If any aspect of gratuity calculation seems unclear, don’t hesitate to ask your HR department for guidance.
  • Utilize online resources: Leverage the DDA calculator and MoHRE website to double-check your calculations and stay informed about your rights.


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