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Frequently Asked Questions
How is gratuity calculated in UAE?
Under UAE Labour Law Article 51, gratuity is calculated as 21 days of basic salary for each of the first 5 years, and 30 days of basic salary for each year thereafter. The total cannot exceed 24 months of basic salary.
What is the minimum service for gratuity?
You must complete at least 1 year of continuous service to be eligible for gratuity in the UAE. Employment of less than 12 months does not qualify for end of service benefits.
Is gratuity different for resignation vs termination?
For limited (fixed-term) contracts, there's generally no difference. For unlimited contracts (pre-2023), employees who resign may receive reduced gratuity depending on years of service.
Is basic salary the same as total salary?
No. Basic salary is the fixed amount stated in your contract, excluding allowances such as housing, transport, phone, etc. Gratuity is calculated only on basic salary.
What about DIFC employees?
DIFC has different rules. Employers contribute 5.83% of basic salary to a DIFC Employee Workplace Savings (DEWS) scheme per year of service.
Is there a maximum gratuity amount?
Yes. Article 51(7) caps total gratuity at 24 months of basic salary, regardless of how many years you've worked.
Disclaimer: This calculator provides estimates based on the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Actual gratuity may vary based on specific contract terms, amendments, and circumstances. Always verify calculations with MOHRE or a legal professional. SmallERP is not liable for any discrepancies between calculated estimates and actual entitlements.