# End-of-Service Gratuity Calculator (India, UAE, Saudi) > Estimate your end-of-service gratuity (severance) under labour law in India, the UAE or Saudi Arabia — from your monthly wage and years of service. - **Category:** Finance & Money - **Interactive calculator:** https://youcalc.com/en/finance-money/gratuity/ - **Price:** Free, no sign-up required ## Overview End-of-service gratuity (also called a severance or end-of-service benefit) is the lump sum a worker is paid when they leave a job, set by each country’s labour law rather than by the employer. The rules differ sharply between India, the UAE and Saudi Arabia — different wage bases, day-rates, eligibility minimums, statutory caps and resignation penalties — so a single global formula gives the wrong number. This calculator applies the correct statutory formula for the country you pick and shows exactly how the figure is built up. It is end-of-service severance, not a restaurant tip. ## How to read your result The headline number is your estimated gratuity in the local currency (INR, AED or SAR), payable when you leave. Below it you will see the full award before any reduction, the years of service the law counts, and the legal basis used. The breakdown lists each accrual tier — for example the UAE’s 21-days-per-year first five years and 30-days-per-year afterwards. If a statutory cap or a resignation reduction changed your figure, a note explains which rule applied and why. ## Method India (Payment of Gratuity Act 1972, covered employer): gratuity = (15 ÷ 26) × last drawn monthly wage (basic + dearness allowance) × years of service. You need at least 5 completed years to qualify; once eligible, a final-year fraction of 6 months or more rounds the years up. The award is capped at ₹20 lakh (2,000,000) since 29 March 2018. UAE (Federal Decree-Law 33/2021, in force since 2 February 2022): the daily wage is basic salary ÷ 30; you accrue 21 days per year for the first 5 years and 30 days per year after that, pro-rated for partial years, after at least 1 year of service. Under the current law the full gratuity is paid whether you resign or are terminated, and the total cannot exceed two years’ wage. Saudi Arabia (Labour Law Articles 84–85): the base is your last full wage including fixed allowances; you accrue half a month’s wage per year for the first 5 years and a full month per year after that. Termination or end of contract pays it in full; resignation is reduced under Article 85 — nothing under 2 years, one third for 2–5 years, two thirds for 5–10 years, and the full amount from 10 years. Figures are informational estimates; they assume standard private-sector employment and do not model death, disability or special exemptions. ## Example - **Setup:** You worked 10 years in the UAE on a basic salary of AED 10,000 a month and your contract ends. - **Result:** The first 5 years accrue 21 days’ basic wage each (105 days) and the next 5 accrue 30 days each (150 days). That is 255 days at a daily wage of AED 333.33, giving AED 85,000 — below the two-years’-wage cap of AED 240,000. ## Frequently asked questions ### Is this end-of-service gratuity the same as a tip? No. End-of-service gratuity is a statutory severance payment — a lump sum your employer must pay when you leave a job, set by labour law and based on your wage and length of service. It has nothing to do with tipping a waiter or driver. If you are looking for restaurant tipping, that is a different calculator. ### Does resigning reduce my gratuity? It depends on the country. In the UAE under the current law (since February 2022) you get the full gratuity whether you resign or are terminated. In Saudi Arabia, resignation is reduced under Article 85: nothing under 2 years, one third for 2–5 years, two thirds for 5–10 years, and the full amount once you reach 10 years. In India, resignation does not reduce the amount as long as you have completed 5 years. ### Which salary figure should I enter? It is the legal wage base for that country, which differs. For India, enter your last drawn basic pay plus dearness allowance. For the UAE, enter basic salary only — exclude housing, transport and other allowances. For Saudi Arabia, enter your last full wage including fixed allowances such as housing and transport. Using the wrong base is the most common mistake and can change the result substantially. ### Is there a maximum gratuity? India caps private-sector gratuity at ₹20 lakh (2,000,000), the figure in force since 29 March 2018. The UAE caps the total at two years’ wage. Saudi Labour Law sets no monetary ceiling on the award itself. When a cap changes your figure, the calculator tells you. ### How accurate is this, and can I rely on it? The formulas follow the cited labour laws and reproduce the official worked examples, so the arithmetic is sound. But your actual entitlement depends on your exact dates of service, your contract type and any special circumstances (death, disability, marriage or force-majeure provisions) that this tool does not model. Treat the result as an informational estimate and confirm with your employer or the labour ministry before relying on it. ## Related calculators - [Zakat Calculator](https://youcalc.com/en/finance-money/zakat/) - [Tourist VAT Refund Calculator](https://youcalc.com/en/lifestyle-everyday/vat-refund/) - [Freelance Hourly Rate Calculator](https://youcalc.com/en/others/freelance-hourly-rate/) ## Sources - https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector/end-of-service-benefits-for-employees-in-the-private-sector - https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=178218 - https://hrsd.gov.sa/en/agencies/labor-sector - https://cleartax.in/s/gratuity-calculator --- Interactive version: https://youcalc.com/en/finance-money/gratuity/ · From YouCalc — https://youcalc.com