How to Use UAE Gratuity Calculator 2025 | Full Guide

The UAE Gratuity Calculator 2025 helps employees quickly find out how much end-of-service pay they will receive when leaving a job in the UAE. Many workers are unsure how their final benefits are calculated under MOHRE Labour Law, so this guide explains the process in a simple and practical way.

With just a few details like your basic salary, start and end date, and contract type, the calculator gives an instant and accurate result. It removes guesswork and ensures your benefits follow the current UAE labour regulations.

This article walks you through each step of using the calculator, from entering your information to checking your total gratuity, so you can get the correct amount before ending your employment.

Overview of the UAE Gratuity Calculator (2025)

The UAE Gratuity Calculator 2025 is an online tool designed to help employees estimate their end-of-service benefits according to the latest MOHRE Labour Law 2025. It follows the official calculation method approved by the Ministry, allowing both local and expatriate workers to check their final dues without complex formulas or confusion.

This calculator works for employees in various sectors including private companies, domestic work, and free zones that follow MOHRE regulations. It simplifies the manual process of calculating gratuity based on salary, duration of service, and contract type. Instead of relying on assumptions or manual math, users can instantly view an accurate figure that reflects their actual entitlement under UAE law.

Whether you are resigning, completing your contract, or being terminated, the calculator provides a transparent overview of your end-of-service pay. It helps you understand what portion of your service years qualifies for gratuity and how the total amount is determined based on your basic salary and employment duration.

For a detailed look at how different contract types affect your benefits, check out the Limited vs Unlimited Contract UAE 2025 guide. You can also learn about Free Zone Gratuity Rules if your company operates under special jurisdictions like DMCC or JAFZA.

The calculator uses formulas aligned with Article 51 and Article 132 of the UAE Labour Law, ensuring every employee receives fair and lawful compensation as per MOHRE regulations.

Key Features of the Calculator

The UAE Gratuity Calculator 2025 offers a range of useful features that make the process of estimating your end-of-service pay simple, fast, and reliable. Every function has been built to comply with the MOHRE Labour Law 2025, ensuring accurate results for every type of employee.

Here are the main features that make this calculator stand out:

Real-time Gratuity Estimation: Instantly calculates your end-of-service pay based on the latest UAE labour law.
Covers All Contract Types: Works for both limited and unlimited contracts, helping users identify correct benefits.
Supports Resignation and Termination Cases: Calculates results according to your reason for leaving the job.
Free Zone Compatibility: Can be used as a reference for free-zone employees to get an approximate figure.
Simple Interface: Clean design that requires no technical knowledge just fill in your details and get results instantly.
Fast and Accurate: Built using UAE’s legal formulas to ensure each calculation matches MOHRE standards.
Mobile and Desktop Friendly: Accessible from any device for quick use.
Privacy Assured: No data is stored or shared, making your calculations completely secure.

Step-by-Step Guide to Using the UAE Gratuity Calculator

Using the UAE Gratuity Calculator 2025 is a simple process that takes only a few minutes. The tool is designed for everyone, whether you’re a new employee exploring your future benefits or planning to leave your company soon.

Follow these easy steps to get your gratuity result accurately:

1. Open the Gratuity Calculator Page

Visit the official UAE Gratuity Calculator homepage. The calculator is available online and can be accessed anytime through mobile or desktop browsers.

2. Enter Your Basic Salary

In the first field, type your basic monthly salary as stated in your employment contract. Avoid adding allowances or commissions unless the calculator specifically requests them.

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You can review our guide on MOHRE Labour Law 2025 for salary definitions.

3. Select Contract Type

Choose between a Limited or Unlimited contract from the dropdown list. The gratuity calculation method depends on this selection.

4. Add Start and End Dates

Enter your joining date and last working day exactly as they appear on your employment records. The calculator will automatically measure your total years and months of service.

5. Select Reason for Leaving

Pick whether you are resigning, terminated, or completing your contract. The outcome changes based on this selection since the UAE Labour Law applies different rules for each scenario. See Gratuity on Resignation UAE 2025.

6. Click on the ‘Calculate’ Button

After entering all details, hit Calculate. The calculator instantly shows your total gratuity amount, along with a summary of your years of service.

7. Review Your Result

Check the displayed figures carefully. The breakdown usually includes:

Years of service
Eligible gratuity amount per year
Total payout under UAE Labour Law
Notes on conditions that may affect eligibility

8. Download or Reset (Optional)

Some versions of the calculator offer an option to download your result as a PDF or reset the fields to make a new calculation. This helps when comparing multiple employment records.

By following these steps, you can quickly find out your end-of-service benefits and confirm they comply with the latest UAE labour law. It’s a reliable way to avoid manual errors and ensure financial clarity before ending your employment.

Formula Behind the UAE Gratuity Calculation

The UAE Gratuity Calculator 2025 uses a formula based on the rules defined in Article 51 and Article 132 of the MOHRE Labour Law 2025. These articles specify how the end-of-service payment is determined depending on the employee’s service period and the type of contract.

Here’s how the formula works in a simple breakdown:

For the first five years of service:
Every employee receives 21 days’ basic wage for each completed year of service.
For service beyond five years:
The entitlement increases to 30 days’ basic wage for every additional year.
Total gratuity = (21 or 30 days’ salary × total years of service)

However, the total gratuity amount cannot exceed the equivalent of two years of total salary, as defined by the UAE Labour Law.

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Example Calculation

Suppose your basic monthly salary is AED 10,000, and you’ve completed 7 years of continuous service:

For the first 5 years: 21 days × 5 = 105 days
For the next 2 years: 30 days × 2 = 60 days
Total = 165 days of salary

Now divide 165 by 30 to convert it into months:
165 ÷ 30 = 5.5 months of salary

Multiply this by AED 10,000 (your monthly wage):
5.5 × 10,000 = AED 55,000 gratuity

This is your total end-of-service benefit, assuming there are no deductions or disqualifying factors such as misconduct or unpaid leave.

For a detailed explanation of this process, you can read the Gratuity Formula Explained in UAE 2025 guide, which breaks down the formula for both limited and unlimited contracts.

Common Mistakes to Avoid When Using the Calculator

Even though the UAE Gratuity Calculator 2025 is designed for accuracy, small errors in input can lead to incorrect results. Many users unknowingly enter the wrong information or skip key details that affect their total end-of-service amount. To make sure your calculation matches the MOHRE Labour Law 2025, avoid the following common mistakes:

Selecting the Wrong Contract Type: Many employees confuse limited and unlimited contracts. Each type follows a different gratuity formula and eligibility rule. (Read: Limited vs Unlimited Contract UAE 2025)
Entering Incorrect Start or End Dates: The calculator determines service years based on the joining and last working dates. Even a one-month difference can change your gratuity amount. Always check your official employment documents before entering dates.
Using Total Salary Instead of Basic Salary: Gratuity is calculated only on your basic monthly salary, not on total pay including allowances, bonuses, or commissions. Double-check the salary mentioned in your contract to ensure accuracy.
Ignoring Partial Years of Service: Some users believe gratuity applies only for full years, but the law allows proportional benefits for completed months as well. The calculator automatically counts partial years, so make sure your dates are exact.
Applying Old Labour Law Rules: UAE’s labour law was updated in 2022 and refined again for 2025. Avoid using outdated rules or third-party websites that haven’t updated their data. Always verify with MOHRE Labour Law 2025
for the latest framework.
Misunderstanding Resignation Rules: Resignation and termination are treated differently under the law. Using the wrong option can significantly change the result. See: Gratuity on Resignation UAE 2025
Not Reviewing the Final Output: Always read the summary before closing the calculator. Confirm that your salary, duration, and contract type are correct. If something looks off, reset and try again.

Avoiding these errors ensures your calculated gratuity is legally accurate and matches what your employer is required to pay.

Differences in Free Zone Calculations

The UAE Gratuity Calculator 2025 mainly follows the rules under the MOHRE Labour Law 2025, which apply to employees working in private-sector companies registered with the Ministry. However, if you work in a free zone, your gratuity may be calculated differently based on the zone’s internal regulations

Each free zone in the UAE operates under its own authority and may follow a slightly different system for employee benefits. While the calculator gives a close estimate, it’s important to verify your company’s specific rules if you are based in one of the following areas:

Dubai Multi Commodities Centre (DMCC):
DMCC follows its own employment regulations, though gratuity calculations are similar to MOHRE’s model. The service period and basic salary rules still apply.
Jebel Ali Free Zone (JAFZA):
JAFZA companies generally align with MOHRE law but may include additional clauses in employee contracts regarding bonuses or notice periods.
Dubai Airport Free Zone (DAFZA):
DAFZA companies may provide extra employee benefits beyond the minimum legal gratuity. Always check your employment contract for confirmation.
Dubai International Financial Centre (DIFC):
DIFC no longer follows the gratuity model. Instead, it uses a Defined Contribution Plan (DEWS), where employers contribute a monthly percentage of the employee’s salary to a managed savings fund.

Although the UAE Gratuity Calculator can still give you a general idea of your payout, free zone employees should verify the final amount with their HR department or refer to official Free Zone Gratuity Rules UAE 2025 for accurate information.

Using the Calculator for Resignation Cases

When an employee resigns from their job in the UAE, the gratuity calculation differs slightly from cases of termination or contract completion. The UAE Gratuity Calculator 2025 includes a specific option for resignation to ensure the calculation reflects the correct entitlement according to MOHRE Labour Law 2025.

According to UAE labour regulations, an employee who resigns after completing at least one year of continuous service becomes eligible for a gratuity payment. The amount depends on the total period of employment and the type of contract limited or unlimited.

Here’s how the calculator applies the rules:

For Limited Contracts:
If you resign before the contract ends, you may lose part or all of your gratuity unless you complete at least one full year. Once the full term is served, the calculator applies the standard formula of 21 or 30 days per year, depending on total service length.
For Unlimited Contracts:
Employees who resign after one year are eligible for gratuity. The calculator automatically applies proportional benefits for service between one and five years, and full benefits after five years. See: Limited vs Unlimited Contract UAE 2025
Partial Service Years:
The calculator also includes partial months of service when computing gratuity. Even if you haven’t completed a full year, the remaining months are counted proportionally.
Reason for Leaving:
Selecting the correct “Reason for Leaving” option is essential. If you choose Resignation, the calculator automatically adjusts the percentage of gratuity as per MOHRE rules. Read more in: Gratuity on Resignation UAE 2025

By choosing the correct contract type and resignation reason, employees can get an accurate figure that matches what they are legally owed. This ensures transparency when reviewing end-of-service settlements with their employer.

Tips for Accurate Results

Getting an accurate result from the UAE Gratuity Calculator 2025 depends on how carefully you enter your details. Many employees rush through the process and end up with incorrect figures, which later causes confusion during their final settlement. To avoid such issues, always fill in your most recent basic salary and make sure your start and end dates match what is written in your employment record.

Another common mistake is mixing total pay with basic pay. The gratuity amount is always calculated only on the basic salary, excluding allowances or bonuses. Before you begin, confirm your contract type, whether limited or unlimited, because the calculator applies a different formula for each category. Choosing the correct reason for leaving, such as resignation or contract completion, also helps in generating the right result according to UAE labour regulations.

Once you get your result, take a moment to review the breakdown of years of service and total gratuity shown on the screen. If the numbers seem unusual, it is best to recheck your inputs. The calculator follows the latest MOHRE Labour Law 2025, so when the correct information is entered, the output will always reflect your true end-of-service benefits.

Legal References and Labour Law Connection

The UAE Gratuity Calculator 2025 is built according to the official rules and formulas stated in the MOHRE Labour Law. It reflects the same legal framework that employers across the UAE are required to follow when calculating end-of-service benefits. The law clearly defines how gratuity should be calculated, who is eligible to receive it, and under what conditions it may be reduced or forfeited.

As per Article 51 and Article 132 of the UAE Labour Law, employees who have completed at least one year of continuous service are entitled to a gratuity payment. The calculator uses these same articles to determine the amount by considering factors such as years of service, basic salary, and contract type. It ensures that the outcome matches what the law prescribes for both limited and unlimited contracts.

The tool also accounts for the latest labour reforms introduced in 2025, which aim to provide better transparency and fairness in employee settlements. By relying on legal guidelines rather than estimates, the calculator helps both employers and employees avoid disputes related to unpaid or miscalculated benefits.

This connection with MOHRE’s official law makes the calculator a dependable source for checking end-of-service pay, giving employees peace of mind that their results comply with current UAE employment regulations.

FAQs about Using the UAE Gratuity Calculator

These frequently asked questions help users clear common doubts while using the calculator. It’s always recommended to double-check your employment terms and use official legal references for the most accurate outcome.

Final Thoughts on Using the UAE Gratuity Calculator

The UAE Gratuity Calculator 2025 makes it easier for employees to know the exact amount they are entitled to receive when leaving a job. Instead of relying on manual calculations or complex legal terms, the tool presents everything in a simple and clear format. It follows the official rules of the MOHRE Labour Law, giving you an accurate estimate based on your basic salary, years of service, and reason for leaving.

By using the calculator carefully and reviewing your details before submitting, you can ensure that your final gratuity aligns with what you legally deserve. It is especially useful for those planning a job change or evaluating financial settlements before signing new contracts. The calculator not only saves time but also prevents misunderstandings between employers and employees.

For anyone working in the UAE, knowing your end-of-service rights is an essential part of planning your future. With this calculator, you can confidently calculate your benefits anytime and stay informed about your legal entitlements under the latest UAE Labour Law 2025.