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How to calculate end of service gratuityEmployee cost calculator
How end of service gratuity is calculated in the UAE
After at least one year of continuous service, private sector end of service gratuity is counted in days of basic wage, without allowances:1
- 21 days for each of the first five years.
- 30 days for each year after the first five.
- The total cannot exceed two years of wage.
Example: three full years come to 63 days of basic wage, and seven years to 165 days.
Questions about the gratuity calculation
How do I calculate end of service gratuity in the UAE?
Count 21 days of basic wage for each of your first five years and 30 days for each year after, up to two years of wage in total. The calculator above works it out in dirhams.
Are allowances included in the gratuity?
No. The gratuity is worked out on basic wage, without allowances.
When does an employee earn end of service gratuity?
After at least one year of continuous service.
1. UAE Government portal: End of service benefits in the private sector, Checked on