Gratuity Calculator Ras Al Khaimah

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

Your gratuity depends on your basic monthly salary and total years of service, not your gross pay. Here’s how it works:

1. 1
   Work out your daily wage: basic monthly salary divided by 30.
2. 2
   For each of your first 5 years of service, you earn 21 days of that daily wage.
3. 3
   For every year beyond year 5, you earn 30 days of that daily wage instead.
4. 4
   Add both parts together. If the total is more than 2 years’ basic salary, it’s capped at that amount.

Only your basic salary counts. Housing allowance, transport allowance, bonuses, commissions, and overtime pay are all excluded, no matter how large a share of your monthly pay they represent.

Worked Example of Al Khaimah Gratuity Calculator

Say you earn AED 9,000 basic salary a month in Ras Al Khaimah and you’re leaving after 4 years of service. It doesn’t matter whether you resigned or were terminated, since current law treats both the same.

Resignation and Termination Are Treated the Same

Since February 2022, resignation and termination have been treated identically for gratuity purposes across the UAE, including Ras Al Khaimah, as long as you’ve completed at least one year of continuous service. Older guidance describing a reduced payout for resigning before 5 years reflects the law before that date, not the rules in place today.

RAKEZ and the MEWSS Savings Scheme

RAKEZ, formed in 2017 from the merger of the old RAK Free Trade Zone and RAK Investment Authority, is one of the UAE’s largest free zones, home to tens of thousands of companies across industrial, commercial, and educational sectors. Gratuity for RAKEZ employees still follows the standard federal formula above.

What’s genuinely new is MEWSS, the Middle East Workplace Savings Scheme, which RAKEZ endorsed in 2025 through a partnership with PraxisIFM Trust and fintech provider Equevu. MEWSS lets RAKEZ employers fund their end-of-service gratuity liability into a segregated trust account instead of carrying it as an unfunded balance sheet liability, and it also offers employees a voluntary payroll savings option. It’s important to understand what this does and doesn’t change: MEWSS is a voluntary funding mechanism for employers, not a new gratuity formula. Your legal entitlement is exactly the same whether or not your employer has signed up.

Eligibility Rules That Apply in Ras Al Khaimah

The same eligibility conditions apply here as anywhere else in the UAE:

• You need at least one year of continuous service to qualify for any gratuity.
• Unpaid or unauthorized leave days don’t count toward your service period.
• If you’re dismissed for gross misconduct under Article 44, you can lose your gratuity entitlement.
• A partial final year is paid pro-rata once you’ve cleared the one-year minimum.