How to Calculate Your UAE Gratuity - Step-by-Step Guide for Expats

If you are working in the UAE and planning to leave your job, understanding your gratuity is very important. Many people are confused about how much they will get at the end of their service. In this episode, we will explain everything in simple words so you can calculate https://gratuitycalculatorsuae.com/ your gratuity yourself without any stress.

What is Gratuity in the UAE?
Gratuity is a lump sum amount paid by your employer when you leave your job, as a thank-you for your service. It is your legal right under the UAE Labour Law, but only if you meet certain conditions.

Who is Eligible for Gratuity?
You are eligible if:

• You are an expat working in the private sector

• You have completed at least 1 year of continuous service

• You are not terminated for misconduct

• You leave the job with proper notice

Key Factors That Affect Gratuity Calculation:
To calculate your end-of-service benefits, you need to know:

• Your basic salary (without any allowances)

• Your contract type (limited or unlimited)

• Your total years of service

• How you left the job – resignation or termination

Gratuity Formula for Limited Contract:

• 1 to 5 years: (Basic Salary × 21 days × Years of Service) ÷ 30

• More than 5 years: (Basic Salary × 30 days × Years of Service) ÷ 30

Gratuity Formula for Unlimited Contract:
If you resign:

• 1–3 years: 1/3 of 21 days’ salary per year

• 3–5 years: 2/3 of 21 days’ salary per year

• Over 5 years: Full 21 days for first 5 years + 30 days per year after

If you are terminated:

• 1–5 years: 21 days’ salary per year

• Over 5 years: 21 days per year for first 5 years + 30 days for every year after that

When Gratuity Can Be Denied:
According to Article 139 of UAE Labour Law, you may not receive gratuity if:

• You resign without notice

• You’re terminated for serious misconduct

• You leave the job before completing 1 year

Why You Should Use a Gratuity Calculator:
Manually calculating gratuity can be confusing. With a digital calculator, you:
✅ Save time
✅ Avoid mistakes
✅ Understand your financial rights
✅ Get peace of mind

Steps to Use a Gratuity Calculator:

1. Enter your basic monthly salary

2. Add your joining and last working date

3. Choose your contract type

4. Select your exit reason (resignation, termination, etc.)

5. Get instant results

Pro Tips:

• Always check your contract terms

• Keep a record of your salary slips

• Talk to your HR before you resign

• Consult a legal advisor if there's a dispute

Why This Episode is Different:
Unlike many other guides or podcasts, this episode offers:

• Fresh, updated info based on 2025 UAE Labour Law

• Easy examples that make calculation simple

• Step-by-step guidance with no legal jargon

• Answers to real employee concerns in plain English

Final Thought:
Understanding your gratuity is more than just knowing numbers. It’s about knowing your value and rights in the UAE workplace. Don’t leave your job without knowing what you’re entitled to.