If you’re working in the UAE and thinking about resigning or retiring, you might be wondering how much money you’ll receive when you leave. That money is called “end of service benefits” or “gratuity.” It’s a lump sum that your employer must pay you at the end of your contract or when you leave the company. Thankfully, you don’t have to guess how much you’ll get—there’s now a tool called the End of Service Calculator that does the math for you.
Whether you’re a long-time employee or recently joined a company, this tool can give you a clear idea of what to expect financially when your job ends.
What Is End of Service Gratuity?
In simple terms, gratuity is a payment that employees are entitled to when they leave their job, provided they meet the basic eligibility conditions. It’s part of the UAE Labour Law and is a way of saying “thank you” for your years of service.
This benefit is only for those who are not part of a company pension scheme or similar retirement system. In most private-sector jobs, employees qualify for end of service gratuity after completing at least one full year of service.
The amount you receive depends on three main things:
- Your basic salary (not including allowances)
- How many years you have worked
- The reason for leaving (resignation or termination)
How the Calculator Works
The UAE’s End of Service Calculator is a free online tool that gives you an estimate based on the details you enter. You’ll be asked for:
- Your basic monthly salary
- Your joining date
- Your last working date
- The reason for leaving the job
Once you put in the information, the calculator instantly shows you how much gratuity you could receive.
This tool is especially helpful because calculating gratuity manually can be confusing. There are different rules depending on how long you’ve worked and why you’re leaving. For example:
- If you resign before completing 5 years, you might receive less gratuity.
- If you’re terminated, you’re likely to get the full amount (unless it’s for misconduct).
- If you’ve worked more than 5 years, the calculation changes again.
Using the calculator helps take the guesswork out of all this.
Who Can Use It?
The End of Service Calculator is mainly designed for private sector employees working under the UAE Labour Law. It works whether you’re on a limited or unlimited contract. If you’re working in a free zone, semi-government, or government sector, the rules may differ slightly. But the calculator can still give you a general idea of what to expect.
It’s also useful for HR teams who want to prepare accurate exit packages, as well as for employees who want to plan their future or understand their rights.
Why It Matters
In the UAE, your end of service gratuity can be a big amount—especially if you’ve been with the same company for many years. It’s often used by employees to pay off debts, start a business, or even support family back home. That’s why it’s so important to know how much you’re owed and ensure you’re paid correctly.
Some workers don’t realize they’re entitled to gratuity, and others don’t know how to calculate it. In some cases, employers may even make mistakes when calculating the amount. That’s where the calculator becomes a key tool—it empowers employees with the knowledge they need to stand up for their rights.
Real-Life Example
Let’s say your basic salary is AED 7,000, and you’ve worked at the company for 6 years. If you resign, the calculator would estimate the following:
- First 5 years: 21 days of salary per year
- After 5 years: 30 days of salary per year
That’s a significant amount of money that you can plan for. And the calculator provides this estimate in just a few seconds.
Important Things to Remember
Here are a few key points to keep in mind when using the End of Service Calculator:
- It’s an estimate, not a legal document – The final payout may differ based on your contract, company policies, or other deductions.
- Basic salary matters most – Allowances like housing, transport, or bonuses are not included in the calculation.
- Your reason for leaving affects the amount – Resigning early might reduce your benefits.
- One-year minimum – You must complete at least one year to qualify for any gratuity.
If you’ve been terminated for serious misconduct (like breaking company rules), you might lose your gratuity altogether. Always check your employment contract and speak to HR if you’re unsure.
Why You Should Use the Calculator Today
Even if you’re not planning to leave your job anytime soon, knowing your gratuity amount can help you with financial planning. It’s useful if you want to:
- Plan your savings
- Understand your total compensation
- Prepare for a move to a new company
- Settle in another country
- Support your family’s future
Plus, it gives peace of mind. You’ll know your rights and feel more confident if you ever decide to move on.
The Bottom Line
End of service gratuity is your right as an employee in the UAE. It’s a financial cushion that rewards your hard work and loyalty. With the End of Service Calculator, you don’t have to be a legal expert or HR professional to figure it out. You can get a fast, accurate estimate with just a few clicks.
Whether you’re planning to leave your job soon or just want to be prepared, the calculator is a simple and smart tool to have on your side.
Also read: Big Changes Coming to UAE Employment Contracts This Year
