The old rule that resigning before five years cut your gratuity was scrapped in the 2021 labour law reform, yet it's still one of the most common outdated assumptions employees make when estimating their end-of-service payout.
That's exactly the gap the Salary & Gratuity Calculator closes. Estimate your end-of-service gratuity under current 2021 labour law — no outdated resignation penalty. This tool is built for employees planning a negotiation, a resignation, or simply wanting to double-check what UAE labour law actually entitles them to.
Why It Matters
UAE labour law sets specific rules for annual leave, gratuity, notice periods and overtime that differ from what many employees assume, especially since the 2021 reforms removed the old unlimited-contract resignation penalty. Salaries also vary significantly by role, industry and free zone versus mainland employer. Knowing your legal entitlements and market rate gives you a stronger position whether you're negotiating an offer or planning your exit.
How to Use the Salary & Gratuity Calculator
- Enter your salary, tenure or role details.
- The tool applies current UAE labour law calculations automatically.
- Use the result to plan negotiations, resignation timing or your CV.
- Get your instant result — no sign-up required, and figures reflect current published UAE rates.
A Mistake This Tool Helps You Avoid
The most common mistake is assuming gratuity is still reduced for resigning before five years — a rule that was removed in the 2021 labour law reform but persists as workplace folklore. Employees also frequently miscalculate notice period pay or unused leave encashment by applying gross salary instead of the basic salary figure the law actually specifies.
How Long It Takes
The whole process takes under a minute. There's no limit on how many times you can run it, so if your numbers change — a new salary figure, a different property price, an updated budget — just come back and recalculate. Nothing you enter is saved or shared; the salary & gratuity calculator runs entirely for your own reference.
Ready to see your own numbers? Try the Salary & Gratuity Calculator now, free, right on this site.