You know the gratuity مكافأة is the employ payment after giving the service. As per the Labour law in the UAE, employers must pay gratuity to workers after one year of service. However, it is base on the service type contract as well as the service rules. If you’re working in the UAE and planning your financial future, understanding your gratuity entitlement is crucial. Whether you’re in Dubai as well as Abu Dhabi or JAFZA or anywhere else in the UAE, knowing how to calculate your end-of-service benefits can help you plan your exit or transition better.
Several updates have been introduced in 2025 to the gratuity calculator and related laws under MOHRE and DDA that every employee should be aware of. So, here you will go through the latest updates, how the MOHRE gratuity calculator works. In fact, you will know formulas and tools available for different zones like DDA gratuity calculator. It will help you easily calculate the gratuity of your service. Here you will also get answers of common questions such as how UAE gratuity calculator work?
What is Gratuity in the UAE?
Gratuity مكافأة is a lump sum payment provided to employees at the end of their service, as mandated by the UAE Labour Law. It’s a form of appreciation and financial support for employees who complete at least one year of continuous service with their employer.
As of 2025, gratuity calculations are mostly based on:
- Type of contract (limited or unlimited)
- Duration of service
- Basic salary
- Resignation or termination status
Under the rules of above points, employers are responsible to pay the amount of gratuity to their employees. And no doubt, this is the reward of the service that employee give to their employers. Therefore, taking the gratuity is the right of employee as per the law of UAE labour.
Gratuity Calculator UAE - 2025
Check your end-of-service benefits based on UAE labor law
2025 Latest Updates in UAE Gratuity Law
Many employers in the UAE continue to follow the old gratuity rules. They are unaware of recent updates. However, the UAE government has introduced key improvements to ensure fairness and transparency in end-of-service benefits. In fact, it also has provided clarifications to the gratuity system. The law is also giving clearer guidelines as well as standardized calculations and digital tools to simplify the process. Here is what’s new in the gratuity system:
- Unified digital platform: The Ministry of Human Resources and Emiratisation (MOHRE) now require private sector employers to use the MOHRE gratuity calculator for accurate payouts.
- All Employees in free zones can now use specialized calculators to determine entitlements. For example, the JAFZA gratuity calculator and DDA gratuity calculator.
- The updated rules now provide more transparent formulas for employees who resign before completing 5 years.
- Annual leave exclusions: Unlike before, unused leave is no longer added to the gratuity calculation that aligning with international best practices.
These updates aim to reduce disputes as well as enhance compliance and protect employees’ rights across all sectors. So, you can go accordingly to get payout after the end of your service.
How Does the UAE Gratuity Calculator Work?
The UAE gratuity calculator helps employees and HR professionals calculate the end-of-service gratuity without errors. It uses data such as:
- Basic monthly salary
- Type of contract
- Total service duration
- Reason for leaving (resignation or termination)
With the help of this data every employee can easily estimate their gratuity in simple way. On the other side, it also help the management team to arrange the gratuity of employee for payout.
Gratuity Calculator Formula in 2025
The general gratuity calculator formula as per UAE Labour Law 2025 is:
Gratuity = (21 or 30 days of basic salary) × Years of service
- 21 days for employees with 1–5 years of service
- 30 days for employees with 5+ years of service
This is the basic formula that most of the employers and employee can use to estimate the gratuity. Lets take an example for batter understanding the formula of gratuity calculator.
Example:
If your basic salary is AED 10,000 and you have worked for 4 years, your gratuity would be:
10,000 ÷ 30 × 21 = 7,000 (gratuity per year)
7,000 × 4 = AED 28,000 total gratuity
Gratuity Calculator Dubai – Who Can Use It?
Everyone can use this to check the gratuity. However, the gratuity calculator in Dubai is ideal for:
- Private-sector employees
- Government employees (non-pensionable)
- Workers under limited and unlimited contracts
- Free zone workers (JAFZA, DDA, DMCC, etc.)
Using the calculator online, every employee can see the estimation of their gratuity. In this way, the calculator gives Dubai-based employees a quick and easy way to estimate their end-of-service benefits using real-time formulas that fulfill with 2025 rules.
Is Gratuity Calculator Abu Dhabi Different?
The rules for gratuity in Abu Dhabi are line up with the federal UAE Labour Law. So the gratuity calculator Abu Dhabi uses the same base formula as Dubai. However, Abu Dhabi government and semi-government employees may have separate pension plans or different policies.
Always check with:
- ADP (Abu Dhabi Pension Fund)
- Your HR department
- The MOHRE portal for private employees
However, the gratuity calculator JAFZA is also similar as of the Dubai gratuity calculator. It is just for the Jebel Ali Free Zone employees to use this calculator.
MOHRE Gratuity Calculator vs JAFZA / DDA Calculators
Here’s a quick comparison of gratuity calculators across zones:
| Gratuity Calculator | Audience | Access |
| MOHRE | Private sector (mainland) | MOHRE Portal |
| JAFZA | Jebel Ali Free Zone employees | jafza.ae |
| DDA | Dubai Development Authority zones | dda.gov.ae |
Each calculator takes into account zone-specific rules, especially regarding contract types, working days, and gratuity exclusions.
Expert Tips to Maximize Your Gratuity
- Always keep a record of your basic salary (this is what counts, not gross).
- Avoid resigning before 5 years if you want the full 30 days/year gratuity.
- Check the calculator that applies to your zone: MOHRE as well as DDA or JAFZA.
- Get written confirmation from HR before exiting.
- Use trusted gratuity calculators such as org to double-check.
Plan Smart with the Right Gratuity Calculator
If you’re looking for a gratuity calculator in UAE, you have multiple tools available based on your employment zone. The MOHRE calculator is ideal for mainland employees, while those working in free zones. For example, JAFZA or DDA should use zone-specific tools to ensure accuracy. On the other hand, the JAFZA gratuity calculator is specifically designed for employees working in the Jebel Ali Free Zone. It is reflecting the latest 2025 updates in contract rules and end-of-service benefits.
In addition, whatever you are using the gratuity calculator in Dubai as well as Abu Dhabi MOHRE or any free zone tool. Understanding your entitlements is essential for financial planning. With the 2025 updates in UAE labour law and tools like the MOHRE gratuity and DDA gratuity calculator, things have never been clearer or more accessible. So, take control of your future and calculate smart and make knowledgeable decisions about your employment journey in the UAE.