Tools · Interactive

Your gratuity is not
a retirement plan.

What your gratuity really buys in months of your own spending, and the monthly investing that closes the gap.

Your numbers

Start with your situation

Retiring in a higher-inflation country? Try 5–8%.

Nominal, before inflation.

Everything below updates live, in today's money.

01The verdict

Your gratuity, measured in months of your life.

Your payout versus the roughly 25× annual spending a self-funded retirement needs.

Projected gratuity at exitiUAE mainland formula: 21 days of basic salary per year of service for the first 5 years, 30 days per year after that. The total is capped at 2 years' wage.
AED 127,500
after 10 yrs of service · mainland formula
That covers justiYour projected gratuity divided by your current monthly spending: how long the lump sum would fund your lifestyle before running out.
8.5 mo
months of your current spending
What you'd need at retirementiThe 25x rule: a portfolio of about 25 times your annual spending supports withdrawing 4% a year, a common benchmark for a self-funded retirement.
AED 4,500,000
25× annual spending, today's money
The gap
AED 4,223,695
after investing your gratuity to 60
What you need at retirementGratuity, invested until retirementGratuity, left in cash
How to read this

After 10 years, your AED 127,500 gratuity buys 8.5 months of your lifestyle.

Invested to age 60 it reaches AED 276,305: 6% of what you need.

Basic-salary trap: gratuity is computed on your basic salary only. Only AED 15,000 of your AED 25,000 package (60%) counts.

02Close the gap

What waiting five years actually costs you.

Same goal, same returns; only the start date moves.

Invest monthly, starting nowiThe monthly amount that, compounding at your assumed return after inflation, grows to cover the gap by your retirement age.
AED 6,501
closes the gap by retirement
Starting in 5 years
AED 8,983
needed for the same goal
Cost of waiting
+AED 2,482
extra per month, forever after
Years compounding works for you
28 yrs
age 32 → 60
Start investing nowSame monthly amount, but start in 5 yearsWhat you need

Same AED 6,501/mo at a 4.4% real return; starting 5 years later leaves you AED 1,166,936 short at age 60.

Where the numbers come from

Gratuity: Article 51 of Federal Decree-Law No. 33 of 2021 (UAE Labour Law) and its executive regulations, administered by MoHRE: 21 days of basic salary per year for the first five years of service, 30 days per year after that, capped at two years' wage; basic salary only, minimum one year of continuous service. Retirement target: the 25× rule, equivalent to a 4% safe withdrawal rate (Trinity Study research). State pension: GPSSA under Federal Decree-Law No. 57 of 2023 covers UAE and GCC nationals only. Alternative end-of-service Savings Scheme: Cabinet Resolution No. 96 of 2023. DIFC (DEWS) and ADGM run their own funded schemes; this tool models the mainland formula. Rules as of July 2026.

Educational tool only, not financial, legal or tax advice. Projections are simplified illustrations in today's money and assume a flat real basic salary; actual entitlements depend on your contract, employer and jurisdiction (mainland vs DIFC/ADGM). Figures and rules as of July 2026; verify with MoHRE, your free-zone authority or a licensed adviser before acting.

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The gapAED 4,223,695
Gratuity covers8.5 mo
Invest monthly, from nowAED 6,501
Full results