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 ยท 9 min read ยท
By Asfandyar Khan, UAE Gratuity Check
Filipino workers, your UAE gratuity rights
Filipinos are one of the larger expat communities in the UAE. 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 โ โฑ15.8 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 | โฑ276,500 |
| Engineer | AED 10,000 | 7 yrs | AED 55,000 | โฑ869,000 |
| IT Professional | AED 12,000 | 10 yrs | AED 102,000 | โฑ1,611,600 |
| Driver / Logistics | AED 3,500 | 3 yrs | AED 7,350 | โฑ116,130 |
| Domestic Worker | AED 2,000 | 4 yrs | AED 5,600 | โฑ88,480 |
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 to 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.
Your DMW approved contract and your UAE entitlements
Overseas hiring for Filipino workers is now handled by the Department of Migrant Workers (DMW), which took over the functions of the old POEA. Your employment contract and your Overseas Employment Certificate (OEC) are processed through the DMW. The UAE contract is also governed by UAE labour law, and that is what decides your gratuity.
- Contract terms: A contract cannot take away what the UAE law gives you. If it offers less than the Article 51 formula, the law still applies (Article 65 treats the Decree-Law rights as minimum rights, and a term that is more beneficial to the worker can still apply).
- OWWA membership: OWWA provides welfare benefits to OFWs. It is separate from your UAE gratuity, which your employer pays.
- Domestic workers: Covered by Federal Decree-Law No. 9 of 2022, which sets no fixed gratuity formula (Article 22). See our domestic workers calculator.
Is your UAE gratuity taxable in the Philippines?
For a Filipino working in the UAE under an overseas employment contract, income from that work is generally not taxed in the Philippines. Here is why:
- UAE side: The UAE has no personal income tax, and the employer can only deduct amounts the law allows (Article 51(7)).
- Philippine side: Under the National Internal Revenue Code (sections 22(E) and 23(C)), a nonresident citizen is taxed only on income from sources within the Philippines. A citizen who works abroad and must be physically present abroad most of the taxable year counts as a nonresident citizen. BIR Revenue Regulations No. 1-2011 explains how an OFW with an OEC is treated.
- Gratuity earned from that overseas work: It is income from a foreign source, so the same reasoning generally applies.
- Not covered by this summary: If you have become an immigrant or permanent resident abroad, or you return home for good and are paid later, the position can differ.
How to send UAE gratuity to the Philippines
Several regulated options exist, and charges differ a lot between providers. For a lump sum such as gratuity, the exchange rate usually matters more than the flat fee.
| Option | What to compare |
|---|---|
| Bank transfer | Fees at both banks, the exchange rate, and how long it takes to reach your Philippine account |
| Exchange house or money transfer company | The rate offered for the day, the fee, and whether you can send to a bank account or pick up cash |
| Online transfer service | The final amount in pesos shown before you confirm, and any extra fee for large transfers |
If your UAE employer refuses to pay your gratuity
If your employer delays or underpays your gratuity, these are the usual steps:
- File with MOHRE: Call MOHRE on 80084, use the MOHRE app, or visit a MOHRE service centre. See our step-by-step MOHRE complaint guide.
- Contact the Philippine Embassy or Consulate: The Philippine Embassy in Abu Dhabi and the Philippine Consulate General in Dubai list their current assistance hotlines on their websites.
- Migrant Workers Office (MWO): The MWO in Dubai and the one in Abu Dhabi are the DMW's offices in the UAE, and they handle OFW labour complaints. Details are on the DMW website.
- If it is still unresolved: MOHRE refers a dispute that is not settled to the court (Article 54), and the MWO can explain your options. A claim is not heard after two years from the end of employment (Article 54(9), as amended in 2024).
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 to 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 |
| Dispute body | MOHRE โ Labour Court | NLRC / DOLE |
RA 7641 is the Philippine retirement pay law and applies to Philippine employment. While you work in the UAE, your UAE gratuity is your end of service entitlement.
Frequently asked questions
I am a domestic worker. Do I get gratuity?
The current domestic workers law, Federal Decree-Law No. 9 of 2022, has an end-of-service gratuity article (Article 22), but it only says the Cabinet may approve how gratuity is calculated and paid. It sets no number of days. The old rule of 14 days per year after one year came from Federal Law No. 10 of 2017, which has been repealed. Check your contract and use MOHRE's Domestic Workers Dues Calculator. Our domestic worker gratuity page explains the details.
My employer deducted money from my gratuity for training costs. Is this allowed?
Not automatically. Under Article 51(7) an employer may deduct from end of service benefits only amounts payable under the law or a court judgment, following the conditions in the Implementing Regulation. A deduction for training costs that is not on that basis can be challenged. Ask for a written breakdown of every deduction, and submit a request to MOHRE if you disagree.
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?
UAE gratuity is paid by your employer under UAE law. SSS, GSIS and Pag-IBIG are Philippine programmes with their own rules and contributions. Ask the agency concerned how your claim is affected, if at all, by your work abroad.
Calculate your UAE gratuity in AED and PHP
Enter your basic salary and service dates, get your full entitlement instantly.
Use the free calculator โ