Ad slot · directly below the tool, never above it
How is end-of-service gratuity worked out?
[Direct 1–2 sentence answer from MOHRE guidance]
This calculator uses these rules, and the page must show the same ones you verified:
- Wage per day = monthly basic wage ÷ 30.
- First 5 years: 21 days of wage for each year.
- After 5 years: 30 days for each extra year.
- Part years count in proportion. Unpaid leave days are not counted.
- Under 1 year of service: nothing is shown.
- The total is capped at 24 months of basic wage.
Worked example
Basic wageAED 3,000 a month
Daily wage (3,000 ÷ 30)AED 100
Service3 years
Days earned (3 × 21)63 days
Gratuity (63 × 100)AED 6,300
The maths is exact for these rules. Whether the rules are current is what you must verify.
Questions people ask
Is what I type stored or sent anywhere?
No. The sum runs in your browser and nothing is sent to us.
Does the calculator include allowances?
No. It uses the basic wage only, as entered. [Confirm with MOHRE]
Does it work for free zone companies?
Not necessarily. Free zones can have their own rules. Check with your free zone authority. [Confirm]
Reviewed by
[Your name], B.Com · [Last reviewed date]
Sources
[MOHRE gratuity page link · Federal Decree-Law on labour relations link]
General information and estimates, not tax, legal or financial advice.