GCC Gratuity Calculator

Basic salary only - your fixed monthly wage as stated in your employment contract. Excluded: housing allowance, transport allowance, food allowance, commissions, bonuses, overtime pay, and any other benefits. This applies in UAE, Qatar, Saudi Arabia, Kuwait, Bahrain and Oman. Using your total package instead of basic salary is the most common mistake employees make.

Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), the maximum gratuity is 24 months of your basic salary, regardless of how many years you have worked. For example, if your basic salary is AED 10,000/month, the maximum you can receive is AED 240,000 - no matter if you worked 20 or 30 years. Qatar, Saudi Arabia, Kuwait, Bahrain and Oman have different caps - use the country selector above to check each one.

Yes - under the new UAE Labour Law (2022 onwards), all contracts are limited (fixed-term), and employees who resign after completing at least one year of service receive full gratuity at the standard 21/30 days formula. The old rule where unlimited contract resignees received reduced gratuity (1/3 or 2/3) was abolished. However, if you are on a legacy unlimited contract signed before February 2022, the old reduction rules may still apply if you resign before completing 5 years.

If you have worked for a partial year (e.g. 3 years and 7 months), you are entitled to gratuity for the full 3 years plus a pro-rated amount for the 7 months. The formula: (Daily rate x gratuity days) x (months/12). This applies in UAE, Qatar and most GCC countries. However, you must have completed at least one full year of service - no gratuity is paid for less than 12 months of service.

Limited (Fixed-Term) contract: Full gratuity on both resignation and termination - 21 days/year for first 5 years, 30 days/year after 5 years. Unlimited contract (Legacy pre-2022): On resignation, reduced gratuity applies - 1/3 of 21 days for years 1-3, 2/3 of 21 days for years 3-5, full 21 days after 5 years. On termination - full gratuity at 21/30 days. Note: All new UAE contracts since February 2022 are limited (fixed-term), so the unlimited contract rules only apply to existing legacy contracts.

Under UAE Labour Law, the employer must pay all final entitlements including gratuity within 14 days of the employment end date. If your employer delays or refuses, you can file a complaint with MOHRE (Ministry of Human Resources and Emiratisation) via the MOHRE app, website, or by calling 800-60. Non-payment of gratuity is a labour law violation and employers can face fines and legal action.

No - gratuity is completely tax-free in all GCC countries (UAE, Qatar, Saudi Arabia, Kuwait, Bahrain and Oman). There is no income tax in any GCC country for expat workers, so you keep 100% of your gratuity payout. This is one of the key financial advantages of working in the Gulf region.

Yes, employers can legally deduct amounts you owe them from your gratuity - such as company loans, salary advances, or other financial obligations. They cannot deduct notice period penalties from gratuity in most cases. Gratuity can only be fully forfeited if you are dismissed for gross misconduct under Article 44 (UAE) or equivalent laws in other GCC countries - such as theft, fraud, or serious violation of workplace safety rules.