Gratuity Calculator Dubai 2025: How to Calculate Your End-of-Service Benefits in the UAE. If you’re working in the UAE and planning to change jobs, resign, or retire in 2025, knowing your gratuity entitlement is essential. The Gratuity Calculator Dubai 2025 helps you estimate your end-of-service benefits under the UAE Labour Law — a tax-free lump sum payment every eligible employee is entitled to after completing one year or more of continuous service.
Gratuity Calculator Dubai
At Mahad Jobs, we explain how gratuity works in Dubai, who qualifies, how it’s calculated, and how to use a gratuity calculator correctly. We also provide access to a free, easy-to-use online gratuity calculator for your convenience.
Gratuity Calculator Dubai: What Is Gratuity in the UAE? Gratuity is a financial benefit paid to employees when they leave their job after a period of service, provided the separation is not due to disciplinary dismissal. It’s part of the UAE’s efforts to provide social and financial security to expatriate workers.
- It is not taxed
- Paid in one lump sum
- Based only on your last drawn basic salary
Who Is Eligible for Gratuity in Dubai?
You are eligible for gratuity pay if:
- You are employed under a private-sector contract
- You have completed at least 12 months of continuous service
- You resign voluntarily, or your contract ends
- You are not dismissed for misconduct under Article 44 of the UAE Labour Law
Gratuity rules apply whether you’re on a limited or unlimited employment contract.
How Gratuity Calculator Dubai (2025)
The calculation depends on:
- Type of contract (Limited vs. Unlimited)
- Duration of employment
- Reason for termination or resignation
- Basic salary (not total salary)
Unlimited Contract:
- 1 to 5 years of service: 21 days of basic salary for each year of service
- More than 5 years: 21 days of basic salary for the first 5 years + 30 days for each additional year
- Cap: Maximum gratuity is equivalent to 2 years’ total salary
Limited Contract:
- 1 to 5 years: 21 days per year
- More than 5 years: 30 days per year
Additional Factors That Impact Gratuity:
- Unpaid Leaves: May be deducted from the total service period
- Absconding Cases: May lead to forfeiture of gratuity
- Resignation Timing: If you resign before 5 years under an unlimited contract, gratuity may be reduced depending on the resignation cause
- Termination due to Misconduct: No gratuity is paid
Sample Gratuity Calculation:
Basic Monthly Salary: AED 10,000
Years of Service: 7 years
- For first 5 years: (21 days × AED 10,000) / 30 = AED 7,000 × 5 = AED 35,000
- For next 2 years: (30 days × AED 10,000) / 30 = AED 10,000 × 2 = AED 20,000
Total Gratuity Pay = AED 55,000
What Happens If I Resign Before Completing a Year?
Gratuity Calculator Dubai: There is no gratuity entitlement for employees who resign before completing one year of service. This rule is applicable under both contract types.
Penalties for Employers Who Delay Gratuity: According to UAE law, the gratuity payment must be made within 14 days of the end of employment. Failing to do so may result in penalties for the employer, such as fines or legal action.
- Fines from the UAE labour authorities
- Legal complaints by the employee
- Ban or restrictions on employer operations
Online Gratuity Calculator for 2025: To simplify the process, Mahad Jobs offers a free online gratuity calculator tailored for Dubai and UAE regulations. Simply enter:
- Joining date
- Last working date
- Basic salary
- Contract type
Documents You Should Collect When Leaving a Job:
- Final salary certificate
- Copy of employment contract
- Gratuity calculation statement from HR
- Experience letter and reference (if applicable)
- Final settlement breakdown
Gratuity FAQS:
Q1: Is housing allowance included in gratuity?
A: No, gratuity is based only on basic salary.
Q2: Can part-time employees receive gratuity?
A: Yes, but it is calculated proportionally to actual working hours and wages.
Q3: Can I dispute my gratuity amount?
A: Yes, you can file a complaint with the UAE Ministry of Human Resources and Emiratisation (MOHRE).
Q4: Are UAE nationals eligible?
A: Gratuity applies primarily to expatriates; nationals may receive end-of-service benefits per separate regulations.
Plan with Mahad Jobs: Mahad Jobs helps you calculate your end-of-service dues and supports you in:
- Finding your next job after resignation
- Resume building and career coaching
- Transitioning to new employers smoothly
Gratuity Calculator Dubai: Don’t Leave Your Benefits Behind: Whether you’re moving on or moving up, understanding your gratuity is crucial. Use the Gratuity Calculator Dubai 2025 on Mahadjobs.com and get the full value you deserve.
