UAE Gratuity Calculator for Filipino Expats 2026
End-of-service guide for OFWs and Filipino workers in the UAE — with PHP conversion and tax guidance · 9 min read ·
Filipino workers — your UAE gratuity rights
Filipino expatriates are one of the largest communities in the UAE, numbering over 700,000. Under UAE law, every Filipino employee who has completed one year of continuous service is entitled to end-of-service gratuity — the same as any other nationality.
This guide covers how to calculate your UAE gratuity, convert it to Philippine Pesos, understand the OFW tax exemption, and the best ways to send your payout home.
Common Filipino expat roles — gratuity estimates
Conversion rate used: 1 AED ≈ ₱15.8 PHP (approximate — verify current rate before planning)
| Role | Basic salary | Years | Gratuity (AED) | Gratuity (PHP) |
|---|---|---|---|---|
| Nurse / Healthcare | AED 5,000 | 5 yrs | AED 17,500 | ₱276,500 |
| Engineer | AED 10,000 | 7 yrs | AED 55,000 | ₱869,000 |
| IT Professional | AED 12,000 | 10 yrs | AED 102,000 | ₱1,611,600 |
| Driver / Logistics | AED 3,500 | 3 yrs | AED 7,350 | ₱116,130 |
| Domestic Worker | AED 2,000 | 4 yrs | AED 5,600 | ₱88,480 |
These are estimates based on the UAE gratuity formula. Your exact amount depends on your actual basic salary, precise service duration, and whether the two-year cap applies. Use the free calculator for a precise figure.
UAE gratuity formula for Filipino workers
The formula is the same for all nationalities:
| Years of service | Gratuity rate |
|---|---|
| Less than 1 year | No gratuity entitlement |
| 1–5 years | 21 days' basic salary per year |
| More than 5 years | 30 days' basic salary per year (for years beyond 5) |
| Maximum | 2 years' total basic salary |
Important: Gratuity is calculated on basic salary only — not on housing allowance, transport allowance, food allowance, or any other benefits. See our basic salary guide for details.
POEA-approved contracts and your entitlements
Most Filipino workers in the UAE are deployed through POEA (Philippine Overseas Employment Administration) or directly via OWWA-registered employers. POEA-approved employment contracts must meet minimum UAE labour law standards — including gratuity provisions.
- POEA standard contract: Must include gratuity entitlement as per UAE law. Any contract that reduces gratuity below the UAE statutory minimum is invalid.
- OWWA membership: Paying into OWWA provides access to OFW welfare benefits — but OWWA is separate from your UAE gratuity. You are entitled to both.
- Domestic workers: Covered under Federal Law No. 10 of 2017 with slightly different rules — see our domestic workers calculator.
Is your UAE gratuity taxable in the Philippines?
For most Filipino workers in the UAE, the answer is no:
- UAE tax: The UAE has no personal income tax. Your gratuity is paid in full with zero UAE tax deduction.
- Philippine income tax for OFWs: Under Philippine law, OFWs (Overseas Filipino Workers) are generally exempt from Philippine income tax on income earned abroad, including UAE gratuity and salary.
- BIR rules: The Bureau of Internal Revenue (BIR) exempts OFW income from Philippine income tax as long as you hold valid OFW documentation and spent the relevant period working overseas.
- Non-OFW Filipinos: If you are not classified as an OFW (for example, if you migrated and became an immigrant rather than a contract worker), different rules may apply. Consult a Philippine tax professional.
Best ways to remit UAE gratuity to the Philippines
When you receive your UAE gratuity, you have several options to transfer it to the Philippines. Compare fees and exchange rates — they vary significantly:
| Transfer method | Typical fee | Typical speed | Notes |
|---|---|---|---|
| UAE Exchange / Al Fardan | AED 15–25 | Same day | Widely available in UAE; BDO, BPI, Metrobank partners |
| Wise (online) | 0.5–1% of amount | 1–2 days | Best exchange rates; large lump-sums benefit most |
| Western Union / MoneyGram | AED 20–50+ | Minutes–1 day | High fees; convenient for cash pickup |
| Bank wire transfer | AED 50–100+ | 2–5 days | Useful for very large amounts; bank-to-bank |
| LBC / Iremit | AED 15–30 | Same day–2 days | Popular with Filipino community; door-to-door option |
If your UAE employer refuses to pay your gratuity
Unfortunately, some employers delay or underpay gratuity. As a Filipino worker in the UAE, you have strong legal protections:
- File with MOHRE: Call MOHRE on 800 60, use the MOHRE app, or visit a MOHRE service centre. This is free. See our step-by-step MOHRE complaint guide.
- Contact the Philippine Consulate: The Philippine Consulate General in Dubai (+971 4 220 7100) and Abu Dhabi (+971 2 635 4212) provide OFW assistance including labour dispute support.
- POLO (Philippine Overseas Labor Office): POLO-Dubai and POLO-Abu Dhabi can assist OFWs with labour disputes, coordinate with MOHRE, and provide legal referrals.
- Legal aid: Both MOHRE and the Philippine Consulate can refer you to free or subsidised legal assistance for unresolved disputes.
UAE gratuity vs Philippine retirement / separation benefits
| Feature | UAE gratuity | Philippines (RA 7641) |
|---|---|---|
| Eligibility threshold | 1 year of service | 5 years of service (retirement at 60) |
| Payment rate | 21–30 days per year of service | 22.5 days per year of service |
| Calculation basis | Basic salary | Latest salary rate |
| Maximum cap | 2 years' basic salary | No statutory cap |
| Tax status | Tax-free in UAE | Tax-exempt (separation/retirement pay) |
| Dispute body | MOHRE → Labour Court | NLRC / DOLE |
Note: Philippine RA 7641 separation pay does not apply when you are working overseas. UAE gratuity is your primary end-of-service entitlement while employed in the UAE.
Frequently asked questions
I am a domestic worker. Do I get gratuity?
Yes — domestic workers in the UAE are entitled to end-of-service benefits under Federal Law No. 10 of 2017. The rules are slightly different from standard private sector employees: domestic workers need two years of service (not one year) to qualify. After two years, the same formula applies — 21 days per year for years 1–5, 30 days per year beyond 5 years.
My employer deducted money from my gratuity for training costs. Is this allowed?
No. UAE law prohibits employers from deducting training fees from gratuity or final settlement without a prior written agreement signed before the training took place, and even then there are limits. An employer cannot unilaterally deduct “training costs” from your gratuity. File a MOHRE complaint if this happens.
Magkano ang aking gratuity sa UAE?
Ang iyong gratuity sa UAE ay nakabatay sa iyong basic salary (hindi kasama ang housing allowance o transport allowance). Para sa unang 5 taon: 21 araw ng basic salary bawat taon. Para sa higit sa 5 taon: 30 araw bawat karagdagang taon. Gamitin ang aming libreng gratuity calculator para sa eksaktong halaga.
Can I claim UAE gratuity and Philippine SSS/GSIS separately?
Yes — UAE gratuity and Philippine social security benefits (SSS, GSIS, Pag-IBIG) are entirely separate entitlements from different systems. Receiving UAE gratuity does not affect your Philippine social security claims or retirement benefits.
Calculate your UAE gratuity in AED and PHP
Enter your basic salary and service dates — get your full entitlement instantly.
Use the free calculator →