Gratuity Calculator Ras Al Khaimah
Employment details
Housing, transport, overtime, bonuses and commission are excluded by law. Use the basic figure on your MOHRE contract.
Contract type, unpaid leave and other adjustments
RAKEZ employees use this federal formula. MEWSS changes how your employer funds gratuity, not how much you get.
Unpaid leave does not count towards your length of service, so it reduces the gratuity.
Everything else you are owed
Notice pay and unpaid salary use your full salary. Leave encashment and gratuity use basic salary only.
An employer may only deduct amounts allowed by law or a court judgment (Articles 25 and 51(7) of Federal Decree-Law No. 33 of 2021).
Where your service sits on the scale
What a later leaving date is worth
Move the slider to push your last working day forward and see exactly what each extra month adds before you hand in your notice.
How your gratuity builds up over time
Assumes unbroken service at your current basic salary.
Year by year
How this is worked out
The formula
- Daily wage is your basic monthly salary divided by 30.
- Each of your first five years earns 21 days of that daily wage.
- Every year after the fifth earns 30 days.
- Part years are paid pro rata once you pass one full year.
- The total can never exceed two years' wage, applied here to basic salary.
Since February 2022, resignation and termination are treated the same way. The old rule that cut resignation payouts to a third or two thirds sat in Federal Law No. 8 of 1980, which has been repealed. Any tool still applying it is out of date.
Why calculators disagree
Run the same numbers through three tools and you can get three answers. Almost always it comes down to one of these:
- Basic versus gross. Gratuity uses basic pay only. Entering your full package inflates the result badly.
- Day count. Some tools divide service by 365, others by 360 or by calendar months, which shifts part years.
- Old law logic. Tools built before 2022 still apply the repealed resignation reductions.
- Unpaid leave. Most tools ignore it entirely, so they overstate long absences.
This calculator counts whole calendar years first and pro-rates the part year by whole months, then days. Your last working day counts as a day worked, so 1 January to 31 December is exactly one year. It applies current 2026 rules and shows every line so you can check the arithmetic against your own payslip.
General information only, not legal advice. Your contract, free zone rules and any MOHRE ruling take precedence. For a disputed settlement, contact MOHRE or a qualified UAE employment lawyer before signing anything, including a waiver letter.

Gratuity in Ras Al Khaimah follows the same federal formula as every other emirate: 21 days of basic salary for each of your first five years, then 30 days for every year after that, capped at two years’ total salary. Use the calculator above with your basic salary and service dates to get your estimate.
How Gratuity Works for Ras Al Khaimah Employees
Ras Al Khaimah is the UAE’s northernmost emirate, with an economy built on cement, ceramics, and quarrying alongside a fast-growing tourism and hospitality sector. Whether you work for a mainland RAK company or a Ras Al Khaimah Economic Zone (RAKEZ)-registered employer, your gratuity is governed by Federal Decree-Law No. 33 of 2021, the same law that applies across the rest of the UAE. Article 51 sets out the formula, and there’s no separate RAK-specific calculation to worry about.
The Gratuity Formula in Ras Al Khaimah
Gratuity in Ras Al Khaimah uses the standard federal formula: 21 days’ basic pay for each of the first five years and 30 days for each year after that. Our UAE gratuity calculator and step-by-step guide shows the full calculation and the two-year cap.
Worked Example for Ras Al Khaimah Employees
Say you earn AED 7,500 basic salary a month at a Ras Al Khaimah company and leave after 11 years of service.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 7,500 ÷ 30 | AED 250 |
| Years 1 to 5 | 250 × 21 days × 5 years | AED 26,250 |
| Years 6 to 11 | 250 × 30 days × 6 years | AED 45,000 |
That total is below the 2-year cap (24 months × AED 7,500 = AED 180,000), so the full AED 71,250 is owed.
Resignation and Termination Are Treated the Same
After one year of service, resigning or being terminated gives the same gratuity under the current law. The old law vs new law guide explains what changed.
RAKEZ and the MEWSS Savings Scheme
RAKEZ, the Ras Al Khaimah Economic Zone, was launched in 2017 to oversee the emirate’s two main free zones, RAK Free Trade Zone and RAK Investment Authority. RAK Digital Assets Oasis (RAK DAO), announced in 2023 for digital and virtual asset companies, is another free zone option. Gratuity for employees in these zones generally follows the federal formula.
RAKEZ has also partnered with Praxis and Equevu on the Middle East Workplace Savings Scheme (MEWSS). It lets RAKEZ employers fund end-of-service gratuity in a separate trust account instead of carrying it as a balance-sheet liability. MEWSS is a funding option for employers, not a new gratuity formula, so your legal entitlement is the same whether or not your employer has signed up.
Only basic salary counts toward gratuity, so use the basic figure from your contract. On a AED 10,500 package made up of AED 7,500 basic plus AED 3,000 in allowances, gratuity is calculated on AED 7,500.
Getting Help With an Unpaid Gratuity in Ras Al Khaimah
If your employer hasn’t paid within 14 days of your last working day, start with a written request to HR. Mainland employees can then file a complaint with MOHRE through its website or app. MOHRE tries to settle the dispute first and can issue a binding decision for claims up to AED 50,000, with larger or unresolved claims going to the courts. Free zone employees, including those in RAKEZ, usually start with their zone authority, which tries to mediate and, if that fails, issues a referral letter for MOHRE. Check mohre.gov.ae for the current contact details.
Eligibility Rules That Apply in Ras Al Khaimah
Eligibility is the same here as in the rest of the UAE: at least one year of continuous service, with unpaid leave days not counting toward your service. The eligibility section on our homepage covers the full rules.
FAQs
No. Employees in RAKEZ generally follow the federal formula. The MEWSS savings scheme RAKEZ has promoted is a funding option for employers, not a different formula, so your legal entitlement stays the same.
The daily wage is AED 250. Five years at 21 days is AED 26,250 and six years at 30 days is AED 45,000, so the total is AED 71,250, well under the AED 180,000 cap.
MEWSS is a workplace savings scheme that RAKEZ has promoted with Praxis and Equevu. Employers can use it to fund gratuity in a separate trust account. It doesn’t change what you are owed under the federal formula.
This page provides general information about UAE gratuity rules and is not legal advice. For a specific dispute or unusual employment situation, consult MOHRE or a licensed UAE labour lawyer.
