Best Gratuity Calculator

Calculate your end-of-service gratuity for multiple countries and regions. Fast, free, and based on official labor law formulas. Get instant results with detailed breakdowns.

Calculate Gratuity

Calculate Your Gratuity

Basic salary only (excluding allowances)

What is Gratuity?

Gratuity is a lump-sum payment made by an employer to an employee upon leaving the company after a qualifying period of service. It serves as a form of financial recognition for the employee's loyalty and contribution.

Gratuity is governed by labor laws in each country. In the UAE, it is regulated under the Federal Decree-Law No. 33 of 2021 and applies to private-sector employees. In India, the Payment of Gratuity Act, 1972 governs gratuity for establishments with 10 or more employees.

Our calculator supports multiple countries and regions, so you can get an accurate estimate of your end-of-service benefits in seconds. Try our free calculator to see how much gratuity you're entitled to.

How to Calculate Gratuity

AEUAE Gratuity Formula

Under UAE labor law, gratuity is calculated using basic salary only (no allowances):

  • 21 days of basic salary per year for first 5 years
  • 30 days of basic salary per year for years beyond 5
  • Daily wage = Basic Salary ÷ 30
  • Maximum cap: 2 years of total basic salary
  • Minimum 1 year of service required

INIndia Gratuity Formula

Under the Payment of Gratuity Act, 1972:

  • Gratuity = (Basic + DA) × 15 × Years of service ÷ 26
  • Service of 6+ months in a year counts as a full year
  • Minimum 5 years of service required
  • Maximum payout capped at ₹20 lakh

Gratuity Calculation Examples

Example 1: UAE Gratuity (3 Years Service)

Basic Salary: AED 10,000/month

Years of Service: 3 years

Calculation:

  • Daily wage = AED 10,000 ÷ 30 = AED 333.33
  • Gratuity = 21 days × 3 years × AED 333.33 = AED 21,000

Total Gratuity: AED 21,000

Example 2: UAE Gratuity (7 Years Service)

Basic Salary: AED 15,000/month

Years of Service: 7 years

Calculation:

  • Daily wage = AED 15,000 ÷ 30 = AED 500
  • First 5 years: 21 days × 5 years × AED 500 = AED 52,500
  • Next 2 years: 30 days × 2 years × AED 500 = AED 30,000

Total Gratuity: AED 82,500

Example 3: India Gratuity (6 Years Service)

Basic Salary + DA: ₹50,000/month

Years of Service: 6 years

Calculation:

  • Gratuity = (₹50,000 × 15 × 6) ÷ 26 = ₹173,077

Total Gratuity: ₹173,077

UAE vs India Gratuity Comparison

AspectUAEIndia
Minimum Service Required1 year5 years
Salary BasisBasic salary onlyBasic + DA
Formula (First 5 Years)21 days per year15 days per year
Formula (After 5 Years)30 days per year15 days per year
Maximum Cap2 years of basic salary₹20 lakh
Tax TreatmentGenerally tax-freePartially exempt
Payment TimelineWithin 14 daysWithin 30 days

Tips & Best Practices

📋 Keep Records

Maintain copies of your employment contract, salary slips, and service certificates. These documents are essential when claiming gratuity.

💰 Understand Your Salary Structure

Know what constitutes your basic salary vs allowances. In UAE, only basic salary counts. In India, include Dearness Allowance but exclude HRA and other allowances.

⏰ Calculate Before Resigning

Use our calculator before making career decisions. Understanding your gratuity entitlement helps with financial planning and negotiation.

✅ Verify with HR

While our calculator provides accurate estimates, always verify the final amount with your HR department or employer before leaving.

📞 Know Your Rights

Familiarize yourself with labor laws in your country. In case of disputes, you can approach labor courts or relevant authorities for resolution.

Why Use Our Gratuity Calculator?

Accurate & Law-Based

Formulas aligned with UAE Federal Decree-Law and India Payment of Gratuity Act.

Private & Secure

Your salary data is processed locally. We never store or transmit your inputs.

Instant Results

Get your gratuity estimate with a clear breakdown in seconds.

Frequently Asked Questions

Gratuity is a lump-sum payment given by an employer to an employee when they leave the company after completing a minimum period of service. It is a form of thank-you or recognition for the employee's dedicated service. The calculation and eligibility rules vary by country (e.g., UAE vs India).
In the UAE (under Federal Decree-Law No. 33 of 2021), gratuity is calculated as: 21 days of basic salary for each year of the first 5 years of service, and 30 days of basic salary for each year beyond 5 years. Daily wage = Basic Salary ÷ 30. The maximum cap is 2 years of total basic salary. Minimum 1 year of service is required.
Under the Payment of Gratuity Act, 1972, gratuity in India is: (Last drawn salary × 15 × Years of service) ÷ 26. Last drawn salary = Basic + Dearness Allowance. Service of 6+ months in a year counts as a full year. Minimum 5 years of service is required. Maximum payout is capped at ₹20 lakh.
UAE: Employees with at least 1 year of continuous service. India: Employees with at least 5 years of continuous service in establishments with 10+ employees (factories, mines, oilfields, etc.). Death or disablement may waive the 5-year rule in India.
UAE: Gratuity is generally tax-free. India: Gratuity is partly exempt from tax. Government employees receive full exemption. For others, the least of (a) ₹20 lakh, (b) actual gratuity received, or (c) 15 days salary × years of service is exempt. Consult a tax advisor for your situation.
Yes. Our gratuity calculator helps you estimate your end-of-service benefits for financial planning. Results are based on current labor law formulas. For official or legal purposes, always verify with your employer or a qualified professional.
UAE: Gratuity is payable in both cases, but the amount may differ. For resignation before 5 years, you get 1/3 of gratuity if service is 1-3 years, 2/3 if 3-5 years, and full gratuity after 5 years. India: Full gratuity is payable regardless of resignation or termination, as long as you meet the 5-year service requirement.
UAE: No, gratuity is calculated only on basic salary, excluding housing, transport, and other allowances. India: Gratuity includes basic salary plus Dearness Allowance (DA), but excludes other allowances like HRA, transport, etc.
UAE: Gratuity must be paid within 14 days of the end of employment contract. India: Gratuity should be paid within 30 days of the employee's application. Delayed payments may incur interest penalties.
UAE: Gratuity can be forfeited if termination is due to gross misconduct. India: Gratuity can be forfeited only if termination is due to riotous or disorderly conduct, or if the employee causes damage to employer's property, up to the amount of damage caused.