UAE Gratuity Calculator
End-of-service gratuity is the lump sum you're entitled to when leaving a UAE job. One of the UAE's hidden financial benefits — calculate what you'd receive and how it grows with tenure.
≈ £51,064/yr at AED 4.7/£
All new UAE contracts since Feb 2022 are limited / fixed-term. Unlimited is legacy.
Gratuity accrual by year (on termination)
| Year | Gratuity earned (AED) | ≈ GBP | Rate |
|---|---|---|---|
| Year 1 | AED 13,808 | £2,938 | 21 days/yr |
| Year 2 | AED 27,616 | £5,876 | 21 days/yr |
| Year 3 | AED 41,425 | £8,814 | 21 days/yr |
| Year 4 | AED 55,233 | £11,752 | 21 days/yr |
| Year 5 | AED 69,041 | £14,690 | 21 days/yr |
| Year 6 | AED 88,767 | £18,887 | 30 days/yr |
| Year 7 | AED 108,493 | £23,084 | 30 days/yr |
| Year 8 | AED 128,219 | £27,281 | 30 days/yr |
| Year 9 | AED 147,945 | £31,478 | 30 days/yr |
| Year 10 | AED 167,671 | £35,675 | 30 days/yr |
Based on basic salary of AED 20,000/mo. Capped at 2 years' basic salary (AED 480,000).
Your estimated gratuity
AED 41,425
≈ £8,814
Key rules to know
- Gratuity is calculated on basic salary only — not total package
- Minimum 1 year of service to qualify
- Capped at 2 years' basic salary
- Must be paid within 14 days of leaving
- Employers cannot make you waive gratuity in the contract
- Does not replace or offset any pension you may have
- DIFC and ADGM employees are covered by the DEWS scheme instead
UK to UAE take-home comparison
Is gratuity taxed?
No. The UAE has no personal income tax, so the full amount is paid to you tax-free. UK tax may apply if you're still UK tax-resident in the year of receipt — check with a regulated UK tax adviser if you're in a split-year scenario.
What if my employer refuses to pay?
UAE Labour Law is clear that gratuity is a legal right. File a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The process is fast and weighted in favour of employees on this issue.
Does gratuity replace a pension?
No. Gratuity is not a pension. DIFC and ADGM employees may receive contributions to the DEWS workplace savings scheme instead of (or alongside) gratuity. Maintain UK pension contributions separately if possible.
Do I lose gratuity if I'm dismissed for cause?
If dismissed for gross misconduct under Article 44 of the UAE Labour Law (e.g. assault, theft, breach of security), you may forfeit gratuity. For ordinary dismissal (performance, redundancy), full gratuity applies.
Can I get gratuity if I resign to join another UAE employer?
Yes. Your old employer pays out when you leave. Your new employment starts a new gratuity clock. Gratuity isn't portable between employers.
What about DIFC / ADGM employees?
If you work in DIFC, you are likely covered by the DEWS (DIFC Employee Workplace Savings) scheme — a defined contribution plan with employer matching. ADGM has a similar scheme. These replace standard gratuity and are more portable.
Negotiating your UAE package?
Strategy sessions cover what to include in your contract to protect gratuity, how to negotiate allowances, and how to structure a UK to UAE move.