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Gratuity & End of Service Calculator
Calculate your end of service gratuity by country. Pick the UAE, Saudi Arabia, India or Bangladesh, enter your dates and last salary, and see your gratuity and how it is worked out.
Pick your country, enter the dates and your last salary, then press Calculate.
What Is a Gratuity Calculator?
Gratuity, also called end of service benefit or end of service gratuity, is a lump sum that an employer pays when you leave a job after a qualifying period. It rewards long service and is paid on top of your final salary and unused leave. The rules are different in every country, so a single formula does not work for everyone.
This gratuity calculator applies the rule of the country you choose. It works out your length of service from your joining date and last working day, then applies the local formula, minimum service and limits. It currently covers the United Arab Emirates, Saudi Arabia, India and Bangladesh, and has an Other country mode where you enter your own rule.
How to Use This Gratuity Calculator
- Select your country. The currency, the salary label and the rule shown under the form change to match.
- Enter your joining date and last working day. The last working day is counted as a day worked.
- Enter your last monthly salary. In the UAE use basic salary. In India use basic plus dearness allowance. In Saudi Arabia and Bangladesh use the last wage you received.
- Choose the reason for leaving if it is asked. In Saudi Arabia, resignation pays a smaller share. In India, death or disablement removes the 5 year minimum.
- Press Calculate. You see the amount, your service length, the steps of the calculation and a table for other years of service.
Gratuity Rules by Country
The table shows the rule used by the calculator. Laws and limits change, so always check your contract and the current law.
| Country | Who gets it | Formula | Limit |
|---|---|---|---|
| United Arab Emirates | 1 year of service or more | 21 days of basic salary for each of the first 5 years, then 30 days for each extra year | 2 years of basic salary |
| Saudi Arabia | Any service; resignation pays less | Half a month of wage per year for 5 years, then 1 month per year. Resignation pays one third after 2 years, two thirds after 5 years, full after 10 years | None |
| India | 5 years of service (not for death or disablement) | Last drawn salary x 15 / 26 x years of service | Rs 20 lakh |
| Bangladesh | 5 years of service in this calculator | 30 days of wages per completed year; 45 days per year when service is over 10 years | None |
How Gratuity Is Calculated
Every formula has three parts: a daily or monthly pay figure, the number of days or months of pay for each year, and the years of service.
- Find the pay base. This is basic salary in the UAE, basic plus dearness allowance in India, and the last wage in Saudi Arabia and Bangladesh.
- Count the service. The UAE and Saudi Arabia count part years in proportion. India and Bangladesh count a part year over 6 months as a full year.
- Apply the rate. For example, the UAE uses 21 days of pay for each of the first 5 years. India uses 15 days of pay, where a month is taken as 26 working days.
- Apply the limit. The UAE limit is 2 years of salary and the Indian limit is Rs 20 lakh.
Gratuity Examples
| Country | Salary and service | Working | Gratuity |
|---|---|---|---|
| UAE | AED 5,000 basic, 6 years | (21 x 5 + 30 x 1) = 135 days x (5,000 / 30) | AED 22,500 |
| Saudi Arabia (end of contract) | SAR 10,000, 8 years | (0.5 x 5 + 1 x 3) = 5.5 months x 10,000 | SAR 55,000 |
| Saudi Arabia (resignation) | SAR 10,000, 3 years | 1.5 months x 10,000 x one third | SAR 5,000 |
| India | Rs 50,000, 10 years | 50,000 x 15 / 26 x 10 | Rs 2,88,461.54 |
| Bangladesh | Tk 40,000, 12 years | 40,000 x 45 / 30 x 12 | Tk 7,20,000 |
Common Gratuity Mistakes
- Using the full salary in the UAE. UAE gratuity uses basic salary only. Housing and transport allowances are not included.
- Forgetting the minimum service. In the UAE you need 1 year. In India you usually need 5 years, although death and disablement are exceptions.
- Counting unpaid leave. In the UAE unpaid leave days are taken out of your service.
- Ignoring the resignation rule in Saudi Arabia. A resignation after 3 years pays one third of the award, not the full amount.
- Using 30 days for India. The Indian formula divides the monthly salary by 26, not 30.
Tips to Protect Your Gratuity
- Keep your offer letter, contract and pay slips. They prove your joining date and salary.
- Ask HR for a written final settlement statement and compare it with this calculator.
- Check whether your company policy or contract pays more than the legal minimum.
- Gratuity is usually paid with your final settlement, so ask when it will be paid.
- If the amount looks wrong, ask for the calculation in writing before you sign any release letter.
Frequently Asked Questions
What is gratuity?
Gratuity is a lump sum paid by an employer when an employee leaves after a qualifying period of service. Many countries set the minimum amount by law.
Is gratuity based on basic salary or total salary?
It depends on the country. The UAE uses basic salary. India uses basic salary plus dearness allowance. Saudi Arabia and Bangladesh use the last wage, so check your contract for what it includes.
How many years of service do I need for gratuity?
The UAE needs 1 year. India normally needs 5 years, except for death, disablement and fixed-term contracts. This calculator applies 5 years for Bangladesh. Saudi Arabia pays in proportion for any service.
Do I get gratuity if I resign?
In the UAE and India yes, if you meet the minimum service. In Saudi Arabia a resignation pays one third of the award after 2 years, two thirds after 5 years and the full award after 10 years.
Is there a limit on gratuity?
The UAE limit is 2 years of basic salary. India has a limit of Rs 20 lakh. Saudi Arabia and Bangladesh have no limit in this calculator.
Is gratuity taxable?
Tax rules differ by country and by amount. Some countries exempt gratuity up to a limit. Ask a local tax adviser about your own case.
Can I use this calculator for another country?
Yes. Choose Other country, then enter the days of pay per year, the days in a month, the minimum years of service and any limit from your law or contract.
Official End-of-Service References
End-of-service calculations depend on current local law, contract terms and personal circumstances. Confirm the applicable rules with an official source before relying on an estimate.