What it does
Gratuity is a lump sum your employer pays when you leave after years of service. Pick India, the UAE or Saudi Arabia, type your last pay and how long you worked, and the calculator applies that country’s rule. For India it also splits the amount into the tax-free part and the part taxed as salary. Everything is worked out in your browser.
See what the taxable part costs you with the India tax calculator, then plan the lump sum with the budget planner.
How to use it
- Pick the country whose law covers your job.
- Type your last monthly pay: basic plus dearness allowance (India), basic salary (UAE) or your full wage (Saudi Arabia).
- Type your years and months of service.
The rules
- India, covered by the Act (10 or more staff): 15 ÷ 26 × last monthly pay × years. A part year of more than 6 months counts as a full year. You need 5 years, or 1 year as a fixed-term employee since November 2025. The Act pays at most Rs 20 lakh.
- India, not covered: half a month’s average pay for each completed year.
- India tax: tax-free up to the least of the formula, Rs 20 lakh and what you were paid. Government employees pay no tax on it.
- UAE: 21 days’ basic salary a year for the first 5 years, 30 days a year after that, part years pro rata, at least 1 year, never more than 2 years’ basic.
- Saudi Arabia: half a month’s wage a year for the first 5 years, a full month after. If you resign: nothing under 2 years, a third for 2 to 5 years, two thirds under 10 years, all from 10 years.
Worked example
Ravi earns Rs 50,000 basic plus DA and leaves after 10 years: 15 ÷ 26 × 50,000 × 10 = Rs 2,88,462, all tax-free. In Dubai, Sara’s basic is AED 10,000 after 7 years: 5 × 21 + 2 × 30 = 165 days at AED 333.33 = AED 55,000. In Riyadh, an 8,000 riyal wage after 7 years gives SAR 36,000, or SAR 24,000 on resignation.
FAQs
Why not Qatar, Oman, Bahrain or Kuwait? We could not confirm their current rules on an official page, so they are left out for now.
Is anything saved? No. Nothing you type leaves the page. Not legal, financial or tax advice; check the official source or your employer.
Where the numbers come from
- India formula (15/26 x last basic + DA x years, part year over 6 months counts as a year), not-covered formula and Rs 20 lakh exemption: Income Tax Department, Taxability of Retirement Benefits (as amended by Finance Act, 2025), https://incometaxindia.gov.in/tutorials/77.taxability-of-retirement-benefits.pdf (checked 2026-11-10)
- Fixed-term employees eligible after one year of continuous service, Labour Codes in force from 21 November 2025: PIB release, https://labour.gov.in/sites/default/files/pib2192463.pdf (checked 2026-11-10)
- UAE private sector: 21 days' basic wage a year for the first 5 years, 30 days after, pro rata, at least 1 year, cap of 2 years' wage: u.ae, End of service benefits for workers in the private sector, https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/end-of-service-benefits-for-employees-in-the-private-sector and Federal Decree-Law 33 of 2021, Art. 51 and 67 (checked 2026-11-10). Daily wage as basic / 30 is fibub's reading of Art. 67: estimate, check the official source
- Saudi Arabia: Labor Law (Royal Decree M/51), Art. 2, 84 and 85, HRSD, https://www.hrsd.gov.sa/sites/default/files/2023-02/Labor.pdf (checked 2026-11-10)
- Qatar, Oman, Bahrain and Kuwait left out: their current rules could not be confirmed on an official page on 2026-11-10
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Last updated 2026-11-10.