UAE Gratuity Guide
This preparation guide explains how end-of-service gratuity is commonly estimated so you can prepare before using the calculator and before checking final details officially.
Quick answer
Gratuity is usually based on your basic salary and your length of service.
It is not usually calculated from your full monthly package or allowances.
Final entitlement can depend on your contract, employment history, law updates, and employer or official confirmation.
What you need before calculating
- Start date
- End date or expected last working date
- Basic monthly salary
- Contract or employment details if available
How the UAEReady calculator estimates gratuity
UAEReady uses a transparent planning method that matches the current calculator logic:
- Daily wage = basic monthly salary ÷ 30
- Service duration is estimated from your start and end dates
- Estimated gratuity is calculated using service-duration tiers already implemented in the calculator helper logic
This is a practical estimate to help you prepare. It is not a final legal or official settlement decision.
Example (illustrative only)
Example inputs:
- Basic salary: AED 10,000
- Service duration: 3 years
The calculator uses these two values to estimate gratuity based on basic salary and service period tiers.
Use this as a planning guide only, then confirm final entitlement officially.
Common mistakes to avoid
- Using total salary instead of basic salary
- Forgetting that unpaid leave or unusual contract cases may affect the final amount
- Treating an online calculator result as final legal advice
- Not checking employer, MOHRE, or official channels before acting
When to verify officially
Before resigning, accepting a settlement, or making financial decisions, confirm your final gratuity position with your employer, MOHRE, or official UAE labor channels.
Also review UAEReady's Disclaimer and Update Policy.
Related UAEReady tools
Frequently asked questions
Is UAE gratuity based on basic salary or total salary?
UAE gratuity is commonly estimated from basic salary and service duration, not the full package. Final treatment should be confirmed with your employer and official UAE labor channels.
Can I use allowances in the gratuity calculation?
In common estimation practice, allowances are not usually included in the gratuity base. Use your contract and official guidance for final confirmation.
What if I worked less than one year?
Many gratuity estimators return zero for service under one year. Your final entitlement can still depend on your contract, case details, and current rules.
Is the UAEReady gratuity calculator official?
No. UAEReady is an independent preparation platform. The calculator is for estimate planning and is not an official government decision.
Should I confirm the result with my employer?
Yes. Always confirm your final end-of-service settlement with your employer and official UAE labor channels before making decisions.