Planning your next career move in Dubai or the wider UAE? Calculating your end-of-service benefits shouldn’t be a guessing game. This UAE Gratuity Calculator is giving you an approximate estimate of your entitlements in seconds. Simply enter your basic salary and service dates below to get started.

Frequently Asked Questions

The questions below cover the situations employees most commonly ask about. If your situation isn’t covered here, MOHRE’s can provide guidance specific to your contract.

Does gratuity apply during the probation period?

No. Time served during probation does count toward your total service period, but you must complete at least one full year of continuous employment before any gratuity becomes payable. If your employment ends before that — whether during or after probation — you receive nothing.

Is gratuity taxed in the UAE?

No. The UAE does not impose personal income tax, so your gratuity payment is received in full with no deductions at source. However, if you are a tax resident in another country, you may have an obligation to declare the payment in your home jurisdiction. This is a personal tax matter and falls outside UAE law.

What happens if I move from a limited to an unlimited contract?

Under Federal Decree-Law No. 33 of 2021, all employment contracts must be limited (fixed-term) by default, with a maximum duration of three years (renewable). The old distinction between limited and unlimited contracts was phased out. Employees who had unlimited contracts prior to February 2022 were transitioned automatically. Service period and gratuity continue to accumulate uninterrupted through any contract type conversion.

Can my employer deduct money from my gratuity?

An employer may offset outstanding debts against gratuity — for example, if you have an unpaid salary advance or company loan that was formally documented. However, deductions must be lawful and agreed upon. An employer cannot reduce gratuity as a penalty for resigning, for performance reasons, or for any disciplinary matter. Any unauthorised deduction can be challenged through MOHRE.

Can gratuity be paid in instalments?

Under UAE Labour Law, gratuity must be paid within 14 days of the last working day. There is no legal provision that allows an employer to split the payment into instalments without your agreement. If an employer requests to pay in parts, any such arrangement should be put in writing. If payment is delayed without a valid reason, you can file a complaint with MOHRE.

Does annual leave affect gratuity?

Paid annual leave does not affect gratuity — it counts as part of your service period. Only unpaid leave (days taken without pay) is excluded from the service duration when calculating gratuity. Any unused annual leave days owed to you at the time of departure are paid out separately as leave encashment, and are not part of the gratuity calculation.

What other end-of-service payments might I be owed besides gratuity?

Gratuity is just one component. Depending on your contract and the circumstances of departure, you may also be entitled to: unused annual leave encashment (days accrued but not taken), notice period pay (if your employer terminates without giving required notice), repatriation allowance (if stated in your contract or applicable by company policy), and any outstanding salary or bonuses. Each of these is a separate entitlement and should be itemised clearly in your final settlement.

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