Are you working in Sharjah and wondering how much gratuity you’re entitled to when your job ends? Understanding gratuity calculations under UAE Labour Law can feel overwhelming, but it doesn’t have to be! In this blog post, we’ll cover everything you need to know about the gratuity calculator for Sharjah in simple, easy-to-understand terms. Whether you’re an employer ensuring compliance or an employee planning your financial future, this guide is for you. Let’s dive in and make gratuity calculations stress-free!

What is Gratuity in Sharjah Under UAE Labour?

Gratuity (also called end-of-service benefit) is the money your employer must pay you when your contract ends, provided you’ve worked at least one continuous year. It’s calculated using your basic salary (not including allowances like housing or transport)​ and the number of years you’ve served. Think of it as a reward for your service that grows with every additional year you work. 

According to UAE New Labour Law 2025 (Sharjah adheres to the same law), once you complete one year, you earn gratuity for each year of service; and even for part of a year beyond full years, on a prorated basis​. This applies whether you resign, retire, or are terminated, as long as it’s not for serious misconduct. 

In fact, under the UAE Labour Law 2025, you are entitled to full gratuity regardless of the reason for leaving (unlike older rules that used to reduce gratuity if you resigned early)​.

Who is Eligible for Gratuity in Sharjah?

Not every employee automatically qualifies for gratuity. Here are the key eligibility criteria under UAE Labour Law:

• Minimum Service Period: You must complete at least one year of continuous service with your employer to be eligible.
• Contract Type: Both limited (fixed-term) and unlimited (open-ended) contract employees can qualify, but the calculation differs slightly.
• Expatriate Employees: Gratuity applies to non-UAE nationals working in the private sector. UAE nationals are typically covered by pension schemes instead.
• Continuous Service: Days of unpaid absence, such as sabbaticals, are not counted in your service period.

If you resign before completing one year or are terminated for serious misconduct (as outlined in Article 120 of the UAE Labour Law), you may not be eligible for gratuity. Always check your employment contract for specific terms.

How Gratuity is Calculated for Sharjah Employees

For most employees in Sharjah (private sector and free zone workers), the gratuity calculation is straightforward. It’s based on your last drawn basic salary and how many years you’ve worked:

• Less than 1 year of service: No gratuity is owed​(you must complete at least one full year to qualify).
  
• 1 to 5 years of service: 21 days of pay per year of service​. This means your gratuity is roughly two-thirds of a month’s salary for each year worked, for the first five years.
  
• More than 5 years of service: 30 days of pay per year for each year after the fifth year, plus 21 days per year for the first five years​. In other words, once you cross five years, each additional year earns you a full month’s salary as gratuity. (The law caps the total gratuity at an amount equal to 2 years’ salary maximum​, which only affects very long tenures.)
  

👉 Note: The “daily wage” used in these calculations is your basic monthly salary divided by 30. Also, these rules apply equally to fixed-term (limited) and indefinite (unlimited) contracts under the current law; contract type doesn’t change the formula for gratuity in 2025. Whether your contract was limited or unlimited, or whether you resigned or were terminated, you are owed the above amounts once you’ve served a year or more​. All private and most free zone employers in Sharjah are legally required to follow this formula when settling end-of-service dues​.

Gratuity for Domestic Workers (Household Staff)

What about housemaids, nannies, drivers, and other domestic workers in Sharjah? They are covered by a separate law, but they do have the right to gratuity as well. Under the UAE’s Domestic Workers Law, a domestic worker who completes one year of service with an employer is entitled to an end-of-service benefit equal to 14 days of basic pay for each year of service. This is a bit lower than the 21 days per year in the general labor law, but it ensures domestic staff also receive a fair payout when their employment ends. 

For example, if a housemaid worked 3 years in Sharjah at a basic salary of AED 1,800 per month, her gratuity would be calculated as 14 days * 3 years = 42 days of pay (about AED 2,520). Like other workers, any partial year beyond full years is counted proportionally once the first year is completed. 

Use the Best Gratuity Calculator for Sharjah Workers

While it’s good to understand the rules above, you don’t need to crunch the numbers yourself. Our website offers the best and most accurate gratuity calculator for Sharjah employees in every sector. This free tool is up-to-date with latest labour regulations in UAE provisions and takes into account your contract type, years of service, and sector. 

Moreover, simply enter your basic salary and how long you worked, and our Sharjah gratuity calculator will instantly show you the amount you’re entitled to. No more guesswork or worry, the calculator applies the exact legal formula (21/30 day rule, or 14-day rule for domestic workers) to give you a precise result every time.

Why Use our Sharjah Gratuity Calculator? 

It’s designed specifically for UAE laws, meaning it follows official MOHRE guidelines and the latest Sharjah labour regulations for end-of-service benefits​. Whether you worked on a limited or unlimited contract, in a free zone company, or as a domestic helper, our calculator covers all scenarios. It ensures you don’t miss out on any amount you’ve earned by law. We pride ourselves on accuracy and ease of use, just a few clicks and you’ll know your gratuity rights in dirhams. This empowers you to plan your finances and confirm that your employer’s payout is correct.

Special Cases in Gratuity Calculation

1. Part-Time or Flexible Contracts

For part-time or non-standard contracts, gratuity is calculated based on the proportion of hours worked compared to a full-time contract. For example:

• If you work 20 hours per week (vs. 40 hours for full-time), your gratuity is 50% of what a full-time employee would receive for the same period.

2. Termination for Misconduct

If you’re dismissed for reasons listed in Article 120 (e.g., fraud or gross misconduct), you may lose your gratuity entitlement. Check your contract and consult a labour lawyer if you’re unsure.

3. Resigning Before Completing a Limited Contract

If you resign before finishing a limited contract, you may not receive gratuity unless you’ve completed at least one year and have valid reasons (e.g., employer breach of contract).

4. Death of an Employee

In the sad event of an employee’s death, their gratuity is paid to their legal heirs, ensuring their family receives the entitled benefits.

Why Gratuity Matters in Sharjah

Gratuity is more than just a payout, it’s a financial safety net. For employees, it can fund new career ventures, relocation, or personal goals. For employers, paying gratuity on time builds trust and ensures compliance with UAE Labour Law. In Sharjah, where businesses thrive and expatriates make up a large part of the workforce, understanding gratuity rules is essential for a fair workplace.

Plus, with the new UAE Labour Law amendments (effective 2023), all contracts are now limited (up to five years), making gratuity calculations more standardized. This change simplifies the process for both employees and employers.

Tips for Employees and Employers

For Employees

• Read Your Contract: Understand your contract type and gratuity terms before signing.
• Keep Records: Maintain payslips, contracts, and employment dates to support your claim.
• Use a Calculator: Estimate your gratuity early to plan your finances.
• Seek Help: If you face disputes, contact MOHRE or a labour law expert.

For Employers

• Stay Compliant: Pay gratuity within 14 days to avoid penalties.
• Use Reliable Tools: Use gratuity calculators to ensure accurate payments.
• Communicate Clearly: Discuss gratuity terms with employees to avoid misunderstandings.
• Consult Professionals: Work with HR or legal experts for complex cases.

Common Mistakes to Avoid

1. Including Allowances: Gratuity is based on basic salary only, not total salary.
2. Ignoring Contract Type: Limited and unlimited contracts have different rules.
3. Assuming Automatic Eligibility: You need at least one year of service to qualify.
4. Not Checking Deductions: Employers can deduct debts, so settle any dues early.

Conclusion 

Every worker in Sharjah should be aware of their gratuity entitlement. It’s a significant part of your financial security when switching jobs or leaving the UAE. Thanks to clear laws and handy tools like our gratuity calculator, you can confidently understand what you’re owed. 

Always remember that your gratuity is protected by lawand with the right information at your fingertips, you’ll ensure you receive every file you deserve when your service comes to an end in Sharjah. 

Enjoy the peace of mind that comes from knowing your rights, and feel free to use our Sharjah Gratuity Calculator anytime to double-check your end-of-service benefits. Your hard work has value, and we’re here to help you calculate it accurately and transparently.