How to Calculate Gratuity in Dubai

Dubai, the dazzling city of skyscrapers and opulence, also boasts a dynamic work environment. But navigating workplace formalities like gratuity can leave you feeling like a tourist lost in a souk. Fear not, intrepid employee! This guide serves as your compass, expertly guiding you through the intricacies of calculating your deserved gratuity in Dubai.


Your Basic Salary:

Employment Period:


# From To Days Gratuity
Total Gratuity You Should Recieve

What is Gratuity?

Gratuity, sometimes called end-of-service benefits, is a mandatory financial payment bestowed upon employees by their employers in recognition of their loyal service. It’s a well-deserved reward for your dedication and expertise, adding a welcome buffer to your financial future.

Who is Eligible?

Rejoice! The law grants most private sector employees in Dubai the right to gratuity after completing one year of service. This applies to both limited and unlimited contracts, with only a few exceptions like probationary periods and freelance work.

The Grand Equation: Cracking the Gratuity Code

The magic formula for calculating your gratuity involves considering your basic salary and years of service:

  • First 5 Years: For each year served, you’re entitled to 21 days of your basic salary. So, if your basic salary is AED 10,000 per month, your first-year gratuity would be (21 x AED 10,000) / 30 = AED 7,000.
  • Beyond 5 Years: The good news gets better! From your sixth year onwards, you receive 30 days of your basic salary for each year. So, in the sixth year, your gratuity would be (30 x AED 10,000) / 30 = AED 10,000.

Important Caveats:

  • Partial Years: Don’t fret if you haven’t completed a full year. Gratuity is proportionally calculated for fractional years, ensuring fairness.
  • Capped Maximum: While the years keep rolling, your gratuity doesn’t become an infinite treasure chest. It cannot exceed two years’ worth of your basic salary. So, even after 20 years, your maximum gratuity will be capped at two times your basic salary.

Empowering Resources:

Calculating gratuity yourself can be a thrilling adventure, but sometimes a helping hand is nice. Consider these handy tools:

  • Dubai Development Authority’s Online Gratuity Calculator: A user-friendly interface that takes you through the steps and delivers your personalized gratuity estimate.
  • Ministry of Human Resources and Emiratisation (MoHRE) Website: This official resource provides detailed information on UAE labor laws, including gratuity regulations.

Top Tips for a Smooth Journey:

  • 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 discuss it with your HR department.
  • Utilize online resources: Take advantage of the readily available tools and information online to double-check your calculations and stay informed.


Understanding gratuity empowers you as an employee in Dubai. With this guide as your map, you can confidently navigate the financial terrain and reap the rewards of your hard work. Remember, your dedication deserves recognition, and gratuity is your well-deserved treasure waiting to be unearthed. So, go forth, calculate with confidence, and enjoy the security of knowing your rights in Dubai’s dynamic workplace.


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