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About This Tool

Who built it, why it exists, and what it does

Who Built This

Clarity House Studio builds free, neutral web tools. We have nothing to sell you and no reason to skew your results - the tool is the product.

Why This Tool Exists

Most gratuity information online is vague, outdated, or hidden behind consultant fees. Workers leaving a job deserve to know what they are owed before walking into a conversation with HR. This calculator gives you a clear, country-specific estimate in seconds - no signup, no download, no data stored.

This tool covers: End-of-service gratuity calculations for UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, and India. Each country uses its own published labour law. The calculator also generates a payment request letter template for raising the matter with your employer. All calculations run in your browser - we never see your salary or employment details.

What This Tool Does and Does Not Do

What it does:

What it does not do:

Our Sources

Gratuity formulas are based on publicly available labour legislation for each country. Key references include UAE Federal Decree-Law No. 33 of 2021, Saudi Labour Law Articles 84/85/87, Qatar Law No. 14 of 2004, Kuwait Law No. 6 of 2010, Oman Royal Decree No. 53 of 2023, Bahrain Law No. 36 of 2012, and India's Payment of Gratuity Act 1972. See the Gratuity Guide for full details on each country's rules.

Privacy

All calculations happen in your browser. Your salary, employment dates, and any other inputs are never sent to our servers. For full details, see our Privacy Policy.

Contact

Have a suggestion? We want to hear from you. This tool is free and maintained because people use it - your feedback helps improve the tool.

Reach us at: Contact us

How Gratuity Works

End-of-service gratuity (also called End of Service Benefits or EOSB) is a lump-sum payment that employers are legally required to pay eligible employees when their employment ends. It is not a bonus - it is a statutory entitlement under labour law in each country.

The amount depends on several factors: how long you worked (your length of service), whether you resigned or were terminated, your basic salary, and the specific rules of your country. In most Gulf countries, gratuity is calculated as a number of days' salary per year of service - but the exact formula, the salary base used, and the minimum service period all vary by country.

For example, in the UAE, gratuity is calculated on basic salary only (not allowances), while in India, the Payment of Gratuity Act uses a formula based on 15 days' wages per year of service using the last drawn salary. Saudi Arabia distinguishes between resignation and termination with different multipliers at different service tiers.

This calculator applies each country's published formula and shows you the specific law used, so you can verify the result against official sources.

Who This Tool Is For

This tool is designed for employees in the UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, and India who want to understand their gratuity entitlement before leaving a job, negotiating a settlement, or reviewing their employer's calculation. It is also useful for HR professionals who need a quick reference for multi-country gratuity rules.

Results are estimates based on standard formula inputs. Your actual entitlement may differ based on your specific contract, any unpaid leave periods, free zone regulations, or other factors. Always verify your result against the relevant government authority or a qualified professional before taking action.

Frequently Asked Questions

Is gratuity the same as a pension? No. Gratuity is a one-time end-of-service payment, not an ongoing pension. Some countries (like Bahrain with its Social Insurance Organisation) have both - this calculator covers the gratuity component only.

Does gratuity apply to all employees? Most countries require a minimum service period (typically one year) before gratuity applies. Part-time, domestic, and certain categories of workers may have different rules. This calculator covers standard full-time employment.

What if my employer's calculation is different? Use the gratuity guide to review the formula for your country, then compare with your employer's breakdown. If there is a discrepancy, contact the relevant labour authority in your country for guidance.

How the Gratuity Calculator Works

End-of-service gratuity is calculated differently depending on which country you worked in, how long you worked there, whether you resigned or were terminated, and in some countries whether you completed probation. The calculator takes your start date, end date, basic salary, reason for leaving, and country, then applies the specific legal formula that applies to your situation.

For the UAE under Federal Decree-Law No. 33 of 2021, the formula is 21 days basic salary per year for the first five years and 30 days per year thereafter, calculated on the basic salary at the time of leaving. For Saudi Arabia under Articles 84 and 85 of the Labour Law, the formula is half a month salary per year for the first five years and one full month per year thereafter. Each country has its own specific rules and our calculator applies the correct formula for each.

All calculations happen in your browser. Your salary, dates, and personal information are never sent to any server. We have no record of what you enter.

Who Should Use This Tool

This calculator is designed for employees and workers who are approaching the end of their employment in a country that mandates end-of-service gratuity payments. It is most useful when you are considering resigning and want to know what you are entitled to, when your contract is ending and you want to verify your employer's calculation, when you have been terminated and want to understand your legal entitlement, and when you are negotiating a settlement and need to know the statutory minimum baseline.

HR professionals, employment lawyers, and labor consultants also use this tool to quickly check the statutory minimum gratuity for client situations across multiple countries without having to manually look up each country's formula.

Gratuity Laws Change - Stay Updated

Gratuity legislation in the Gulf region and elsewhere is not static. The UAE introduced a completely new labour law framework through Federal Decree-Law No. 33 of 2021, which took effect in February 2022 and changed several aspects of how gratuity is calculated. Saudi Arabia periodically updates its labour regulations. Oman updated its gratuity provisions through Royal Decree No. 53 of 2023. We review our country data regularly to reflect current law.

If you believe our calculation for your country is based on outdated legislation, please contact us at clarityhousestudio@gmail.com with the specific law or regulation you believe we should be using. We take accuracy seriously and update our data when credible legal sources confirm a change.

Frequently Asked Questions

Is gratuity the same as a severance payment?

They are related but not identical. Gratuity is a statutory end-of-service payment mandated by labor law in many countries, calculated according to a specific formula based on years of service and basic salary. Severance pay in Western legal systems is typically a discretionary or contractually negotiated payment made on termination. In Gulf countries, the statutory gratuity is the main form of end-of-service benefit and replaces what Western employees might know as severance.

Does my employer have to pay gratuity if I resign?

In most Gulf countries yes, provided you have completed the minimum service period. In the UAE under the current law, employees are entitled to gratuity regardless of whether they resign or are terminated, provided they have completed at least one year of continuous service. In Saudi Arabia, employees who resign after two years are entitled to a third of the standard gratuity, rising to two-thirds after five years and the full amount after ten years.

Is gratuity taxable?

In most Gulf countries where gratuity is commonly paid - UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman - there is no personal income tax, so gratuity is received in full. In India, gratuity received up to 2 million rupees is tax-exempt for private sector employees. Tax treatment varies by country and individual circumstances. Always verify with a tax advisor in your specific country.

Contact and Credits

We welcome corrections, feedback, and suggestions. Contact us at clarityhousestudio@gmail.com. We respond within 5 to 7 business days. Published by Clarity House Studio. This calculator is free, private, and will remain so. Copyright 2026 Clarity House Studio. All Rights Reserved.