Pick India or the UAE, enter your last salary and length of service, and get an estimate of the end of service gratuity your employer owes under that country’s rules.
Runs in your browser. Nothing you type is sent anywhere. This is an estimate, not legal or tax advice. Your employer, contract and the latest rules decide the final amount.
This gratuity calculator is for employees in India and expatriate workers in the UAE who are leaving a job, retiring or checking an offer letter. It applies each country’s legal formula to your salary and service, shows the years counted and the daily wage used, and flags the legal cap. Treat the figure as an estimate only.
How Is Gratuity Calculated?
In India, gratuity is last monthly basic plus DA × 15 ÷ 26 × years, with over 6 extra months rounded up. For example, 60,000 × 15 ÷ 26 × 13 years = Rs 4,50,000. In the UAE, it is 21 days of basic pay per year for the first 5 years and 30 days per year after that.
What Is the Gratuity Formula in India?
In India, gratuity equals 15 days of wages for every completed year of service, where one day’s wage is the last monthly wage divided by 26.
years counted = full years, plus 1 if the extra part is more than 6 months
The rule comes from the Payment of Gratuity Act, 1972, and its gratuity provisions now sit in the Code on Social Security, 2020, which took effect on 21 November 2025. Wages here means basic pay plus dearness allowance (DA). Under the new Code, if allowances are more than half of total pay, the excess is added back to wages, so your counted wage can be higher than basic plus DA. The 26 stands for working days in a month. Most permanent staff need 5 years of continuous service, while fixed-term staff now qualify after 1 year. The maximum gratuity payable by law is Rs 20 lakh. For private sector staff, gratuity is exempt from income tax under Section 10(10) up to the same Rs 20 lakh in total over a working life.
How Is End of Service Gratuity Calculated in the UAE?
In the UAE, private sector workers get 21 days of basic salary for each of the first 5 years and 30 days for each year after that, capped at 2 years of pay.
gratuity = daily × 21 × (years up to 5) + daily × 30 × (years over 5)
maximum = 24 × monthly basic
This is Article 51 of Federal Decree Law No. 33 of 2021, the UAE labour law, overseen by the Ministry of Human Resources and Emiratisation (MOHRE). It uses basic salary only, not housing or transport allowances. You need at least 1 year of continuous service, after which part years count pro rata. Unpaid leave days are not counted. UAE nationals are covered by pension law instead.
What Are Typical Gratuity Amounts?
Typical gratuity amounts grow by about half a month’s pay per year in India and by 0.7 to 1 month’s basic pay per year in the UAE.
| Case | Service | Gratuity |
|---|---|---|
| India, Rs 25,000 | 5 years | Rs 72,115.38 |
| India, Rs 60,000 | 12 years 6 months | Rs 4,15,384.62 |
| India, Rs 60,000 | 12 years 7 months | Rs 4,50,000 |
| India, Rs 5,00,000 | 25 years | Rs 20,00,000 (cap) |
| UAE, AED 7,000 | 2 years | AED 9,800 |
| UAE, AED 7,000 | 7 years | AED 38,500 |
| UAE, AED 12,000 | 8 years 6 months | AED 84,000 |
| UAE, AED 10,000 | 30 years | AED 240,000 (cap) |
Is Gratuity Paid If I Resign?
Yes, in both countries gratuity is generally paid on resignation once you meet the minimum service, which is usually 5 years in India and 1 year in the UAE.
Gratuity can be reduced or withheld for serious misconduct, and some employers pay more than the legal minimum, so always check your contract. To see how your monthly pay breaks down by the hour, try the salary to hourly calculator, and to plan what to do with a lump sum, the compound interest calculator shows how it could grow.
Worked Example
Priya in Pune earns basic plus DA of Rs 60,000 a month and leaves after 12 years 7 months. Choose India and enter 60000, 12 and 7. The extra 7 months is more than 6, so the tool counts 13 years and shows Rs 4,50,000, with one day’s wage of Rs 2,307.69. In Dubai, Omar has a basic salary of AED 12,000 and 8 years 6 months of service. Choose UAE: 5 × 21 days plus 3.5 × 30 days at AED 400 a day gives AED 84,000, well under the cap of AED 288,000.
How Do You Use the Gratuity Calculator?
Choose the country
Tap India or UAE. Each uses its own legal formula and currency.
Enter salary and service
Type your last monthly wage, full years and extra months of service.
Read your gratuity
The big number is the estimated gratuity, with the formula shown under it.
Check years, daily wage and cap
The boxes show the years counted, one day's wage and the legal maximum.
Frequently Asked Questions
How much gratuity do I get for 5 years in India?
For exactly 5 years, gratuity is last monthly basic plus DA × 15 ÷ 26 × 5. On a wage of Rs 25,000 that is Rs 72,115.38. Below 5 years, permanent staff usually get nothing unless the job ends by death or disability.
Does 4 years and 7 months count as 5 years for gratuity?
Not for eligibility in most cases, because the 5 year minimum means 5 completed years of continuous service. Some courts have accepted 4 years and 240 working days. The rounding of more than 6 months applies when working out the amount.
Is gratuity in the UAE based on basic or gross salary?
UAE gratuity uses basic salary only. Housing, transport and other allowances are left out. On a basic of AED 7,000 with 2 years of service, gratuity is 7,000 ÷ 30 × 21 × 2 = AED 9,800.
Is gratuity taxable in India?
For government staff it is fully tax free. For private sector staff it is exempt up to the lowest of the actual gratuity, the formula amount and Rs 20 lakh. Anything above is taxed as salary income.
What is the maximum gratuity in the UAE?
The total cannot exceed 2 years of basic pay, which is 24 times the monthly basic. On a basic of AED 10,000 the cap is AED 240,000, so even 30 years of service pays no more than that.
Why does India divide by 26 and not 30?
The 26 reflects working days in a month, leaving out about four weekly rest days. Dividing by 26 gives a higher daily wage than dividing by 30, so it slightly favours the employee.
Sources and Further Reading
- Income Tax Department of India: gratuity exemption limit of Rs 20 lakh under section 10(10)
- India Code: The Payment of Gratuity Act, 1972
- UAE Government portal: End of service benefits for employees in the private sector
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Last reviewed: October 2026