Are You Losing Out on Thousands in Gratuity Pay?
Every year, many employees in the UAE miss out on thousands of dirhams because they don’t understand how their gratuity is calculated. Whether you’re under a limited or unlimited contract, using a reliable Gratuity Calculator UAE can help secure your rightful end-of-service benefits.
What Is Gratuity in the UAE?
In the UAE, gratuity (مكافأة) is a lump sum payment made by an employer to an employee at the end of their service tenure. Governed by UAE Labour Law, particularly Article 51 and Article 139, gratuity applies to expatriate employees in the private sector, not UAE nationals, who receive National Pension Plans.
Key Eligibility Requirements:
- Completion of one year of service
- Employment under a valid employment contract
- Lawful resignation or termination not linked to misbehavior or unlawful activities
How the Gratuity Calculator UAE Works
Using an online Gratuity Calculator saves time and helps avoid costly mistakes in estimating your accrued gratuity.
Inputs You’ll Need:
- Basic salary (excluding allowances)
- Start and end date of employment
- Type of contract: limited or unlimited
- Reason for job exit: resignation or termination
Sample Calculation (Limited Contract):
- Service years: 4
- Basic salary: AED 5,000
- Formula: (AED 5,000 × 21 × 4) ÷ 30 = AED 14,000
Understanding Contract Types and Job Exit Conditions
🔹 Limited Contract
- Fixed contract duration
- Gratuity may be forfeited if contract completion is not met
🔹 Unlimited Contract
- Flexible duration
- Requires notice period between 1–3 months
- Gratuity varies based on service years and whether you resigned or were terminated
| Service Years | Resignation | Termination |
|---|---|---|
| < 1 Year | No gratuity | No gratuity |
| 1–3 Years | 1/3 gratuity | 21 days/year |
| 3–5 Years | 2/3 gratuity | 21 days/year |
| > 5 Years | Full gratuity | 30 days/year |
When Can Gratuity Be Denied?
Under Article 139, your gratuity entitlements can be denied if:
- You resign without legal notice (except under specific conditions)
- You’re terminated due to misconduct, property loss, or violence
- You don’t provide legal proof of your employment contract
Why Accurate Gratuity Calculation Matters
Mistakes in gratuity calculations can lead to:
- Underpayment of your benefits
- Legal disputes with your hiring company
- Loss of years’ worth of compensation
To protect your legal rights, always:
- Keep detailed employment records
- Review your salary statements regularly
- Consult a labour law expert for disputes
Real-World Example
Case Study: Sara from Dubai
Sara, an expatriate employee, resigned after 6 years under a limited contract with a basic salary of AED 7,000. Using the Gratuity Calculator UAE, her gratuity estimate was:
(7,000 × 30 × 6) ÷ 30 = AED 42,000
Without the calculator, her employer initially offered only AED 25,000. With legal support, she claimed her full entitlement.
Conclusion
Whether you’re preparing to resign or facing termination, using a Gratuity Calculator UAE gives you clarity and power. Understand your eligibility, review your contract type, and know the gratuity formula relevant to your case.
✅ Take action now:
Use our trusted Gratuity Calculator to estimate your pay and protect your future. If unsure, seek legal assistance to fight for your rightful end-of-service benefits.