Statutory · India + UAE

Gratuity Calculator, India + UAE

Compute Indian gratuity under the Payment of Gratuity Act 1972 or UAE end-of-service gratuity under the UAE Labour Law. Free, instant, no signup.

Gratuity payable

₹2,88,462

Before ₹20 lakh cap: ₹2,88,462

Last drawn basic + DA
₹50,000
Completed years
10
Formula
Basic × 15 ÷ 26 × years

Indicative only. Statutory rates change; confirm against the current rules before acting on a figure.

How it works

Gratuity is a lump-sum payment from employer to employee on exit, paid after a qualifying service period. Indian gratuity is governed by the Payment of Gratuity Act 1972; UAE end-of-service gratuity is governed by the UAE Labour Law. Both are calculated against last drawn basic wage (plus DA in India) and years of completed service, but the formulas differ.

Formula

  • India: Gratuity = (Last drawn basic + DA) × 15/26 × completed years of service. Capped at Rs. 20 lakh.
  • UAE (limited contract): 21 days basic per year for the first 5 years, 30 days basic per year thereafter. Capped at 2 years' wages.
  • UAE (unlimited contract, pre 2022 hires): Reduced gratuity if employee resigns before 5 years (1/3 for 1-3 years, 2/3 for 3-5 years, full thereafter).
  • Qualifying service: India, 5 years completed (or 4 years 240 days). UAE, 1 year completed.

Worked example

An Indian employee with Rs. 50,000 basic + DA last drawn and 10 completed years of service: Gratuity = 50,000 × 15/26 × 10 = Rs. 2,88,461. A UAE employee with AED 8,000 basic and 7 completed years of service: First 5 years = 8,000 ÷ 30 × 21 × 5 = AED 28,000. Years 6-7 = 8,000 × 2 = AED 16,000. Total = AED 44,000 (within 2-year cap of AED 192,000).

Frequently asked questions

Who is eligible for gratuity in India?

Employees who have completed 5 years of continuous service (or 4 years and 240 days in the 5th year) with the same employer, under the Payment of Gratuity Act 1972. Applicable to organisations with 10 or more employees.

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What is the maximum gratuity payable in India?

Rs. 20 lakh under the current cap (set by the Payment of Gratuity (Amendment) Act 2018). Some employers pay more as a contractual benefit; the excess is taxable.

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Is gratuity taxable in India?

Government employees: fully exempt. Private sector under Gratuity Act: exempt up to Rs. 20 lakh. Private sector not under Act: exempt up to half-month salary × years served, capped at Rs. 20 lakh.

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What if I exit before 5 years in India?

Generally not eligible, except in case of death or disablement, where gratuity is payable regardless of service length. Some companies pay ex-gratia by policy.

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Is UAE gratuity different for resignation vs termination?

Under the current UAE Labour Law (post-2022 reforms), gratuity is calculated the same way regardless of whether the contract ends by resignation or termination, as long as 1 year of service is completed.

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Does this calculator include leave salary on exit?

No, this calculator gives only the gratuity figure. UAE final settlement also includes leave salary, leave encashment, repatriation ticket and dues. Use our leave-encashment calculator for the leave component.

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What counts as 'basic wage' for UAE gratuity?

Basic wage on the labour-card contract, typically excluding housing, transport and other allowances. Confirm against your contract; the labour-card basic is the legal anchor.

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