Gratuity is an end-of-service benefit paid by employers to employees upon termination or resignation. It is calculated based on basic salary and length of service.

How is gratuity calculated in UAE?

In UAE, gratuity is 21 days basic salary per year for the first 5 years, and 30 days per year for each year after 5. Total gratuity cannot exceed 2 years salary.

What is the minimum service for gratuity in UAE?

You must complete at least 1 year of continuous service to be eligible for gratuity in UAE.

In UAE, gratuity is not taxed as there is no income tax. In Pakistan and India, gratuity may be partially or fully exempt from tax depending on the amount and applicable laws.

Gratuity Calculator

Calculate your end-of-service gratuity based on UAE, Pakistan or India labor law. Supports custom gratuity rates.

Country / Gratuity Law

Basic Monthly Salary (USD)

Years of Service

Additional Months

UAE Labour Law: 21 days basic salary per year for first 5 years, 30 days per year after 5 years. Maximum gratuity capped at 2 years total salary. Minimum 1 year service required.

How to Use This Gratuity Calculator

1Select your country or gratuity law (UAE, Pakistan, India, or Custom)
2Enter your basic monthly salary
3Enter your total years and months of service
4Click Calculate to see your gratuity amount

Formula

UAE: 21 days salary/year (first 5 years) + 30 days/year (after 5 years). Pakistan: 30 days salary per completed year. India: 15 days wages per year (26 working days basis).

Frequently Asked Questions

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About Gratuity Calculator

Planning to leave your job or been terminated? Use this gratuity calculator to find out exactly how much end-of-service benefit you are entitled to under the labor laws of UAE, Pakistan, or India. Gratuity is a lump-sum payment that employers owe employees based on their basic salary and years of service. In the UAE, the new labor law (Federal Decree-Law No. 33 of 2021) entitles employees to 21 days of basic salary for each year of the first 5 years, and 30 days per year after that, with a cap of 2 years total salary. In Pakistan, under the Payment of Gratuity Act, employees receive 30 days of last drawn salary for each completed year of service. In India, the Payment of Gratuity Act 1972 provides 15 days of wages for every completed year of service, calculated on a 26-working-day month basis. This calculator handles all three formulas automatically — just select your country, enter your basic salary and service duration, and get your exact gratuity amount instantly. It also supports custom gratuity rates for other countries and company-specific policies. Whether you are in Dubai, Karachi, Lahore, Mumbai, or Delhi, this tool gives you an accurate estimate of your end-of-service benefits so you can plan your finances before resignation or termination.