Estimate your end-of-service gratuity under the UAE Labour Law from your basic salary and years of service.
End-of-service gratuity
Days of basic wage
Daily basic wage (salary ÷ 30)
Service counted (years)
Note
Private-sector employees in the UAE earn an end-of-service gratuity after at least one year of continuous service. It is paid on your last basic salary — allowances are not counted — and since the 2021 Labour Law took effect in February 2022, the same formula applies whether you resign or your employer ends the contract.
Example
Basic salary AED 12,000, 9 years of service: daily wage AED 400 (12,000 ÷ 30). 21 days × 5 years = 105 days, plus 30 days × 4 years = 120 days, for 225 days in total — a gratuity of AED 90,000.
Basic salary AED 9,000 and 3½ years: 73.5 days × AED 300 = AED 22,050.
Bringing your gratuity home
Gratuity received abroad by an NRI is not taxed in India. Moving it into an NRE fixed deposit keeps the interest tax-free in India while you remain an NRI.
Compare providers before transferring a large sum — the money transfer calculator shows the real cost including the exchange-rate margin.
How this is calculated
Gratuity = daily basic wage × (21 × years up to 5 + 30 × years after 5)
Daily basic wage = last basic monthly salary ÷ 30. Part years count pro rata; unpaid absence is not counted. The total cannot exceed two years' basic wage. No gratuity below one year of service.
Assumptions
Private-sector employees under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Free zones such as DIFC and ADGM, government jobs and domestic workers have their own rules.
Since February 2022 the same formula applies whether you resign or your employer ends the contract; the old reductions for resignation no longer apply. Dismissal for gross misconduct under Article 44 can forfeit gratuity.
Your employer may deduct amounts you owe. Gratuity is due within 14 days of the contract ending.
An estimate only — check your contract and the Ministry of Human Resources and Emiratisation (MoHRE).
No. Gratuity is calculated on the basic wage only, which is why many contracts set basic pay well below total pay.
Does gratuity apply in DIFC or ADGM?
No. DIFC employers contribute to the DEWS savings scheme instead, and ADGM has its own rules. Government and domestic workers are also covered by different laws.
When must the employer pay?
Within 14 days of the contract ending, together with other dues such as unused leave.
Results are estimates for information only, based on the inputs and assumptions shown. They are not financial, tax or legal advice. Banks, fund houses and the tax department may calculate actual amounts differently.
