UAE Gratuity Calculator End of Service Benefits (EOSB)
In the UAE private sector, gratuity (the end of service benefit, or EOSB) is 21 days' basic wage for each of the first five years of service and 30 days' basic wage for each year after that, capped at two years' wage (Article 51 of Federal Decree-Law No. 33 of 2021). To estimate it, the calculator needs your employment framework, monthly basic salary, and start and end dates.
How to calculate gratuity in the UAE (step by step)
- Work out the daily basic wage: monthly basic salary ÷ 30. Allowances such as housing and transport are left out, and the rate is the last basic wage you were entitled to (Article 51(5)).
- Count the years of continuous service from the start date to the last working day. Below one full year no gratuity is due (Article 51(2)).
- Multiply the daily basic wage by 21 days for each of the first five years, and by 30 days for each year after the fifth (Article 51(2)).
- Add the unfinished year in proportion: days worked in it ÷ days in that year, at the 21- or 30-day rate that applies to it (Article 51(3)).
- Leave days of unpaid absence out of the service period (Article 51(4)).
- Cap the total at two years' wage (Article 51(6)). The cap is counted on total wage, so regular allowances entered under More details raise it; the 21- and 30-day amounts stay on basic salary.
Worked example: AED 12,000 basic salary, 7 years and 181 days
- Basic salary AED 12,000 a month, total wage AED 18,000; service from 1 January 2019 to 30 June 2026, no unpaid leave.
- Daily basic wage: AED 12,000 ÷ 30 = AED 400.
- Years 1 to 5: 5 × 21 × AED 400 = AED 42,000.
- Years 6 and 7: 2 × 30 × AED 400 = AED 24,000.
- Part of year 8 (181 of 365 days): 181 ÷ 365 × 30 × AED 400 = AED 5,950.68.
- Cap: 24 × AED 18,000 = AED 432,000, not reached.
End of service gratuity: AED 42,000 + AED 24,000 + AED 5,950.68 = AED 71,950.68.
More UAE gratuity calculation examples
With a monthly basic salary of AED 10,000 (daily wage AED 333.33):
- 3 years of service21 days × 3 years × AED 333.33≈ AED 21,000 gratuity
- 7 years of serviceFirst 5 years at 21 days + 2 extra years at 30 days × AED 333.33≈ AED 55,000 gratuity
- Less than 1 yearService below the one-year minimumNo gratuity entitlement
What counts as basic salary for end of service gratuity?
UAE gratuity is calculated on your basic salary only, not on your total monthly package.
Allowances such as housing, transport, utilities, furniture and similar add-ons are excluded from the gratuity calculation. If your contract states a basic salary of AED 6,000 inside a total package of AED 10,000, your gratuity is based on AED 6,000.
The estimate follows the basic salary you enter, so use the figure from your labour contract or latest payslip.
Eligibility and payment timeline for end of service benefits
Full-time private-sector employees generally become eligible for gratuity after completing at least one year of continuous service.
The employer must pay all final entitlements, including gratuity, within 14 days from the date the contract ends (Article 53).
Is gratuity reduced if you resign?
No. Under Article 51 of Federal Decree-Law No. 33 of 2021 a full-time foreign employee who resigns after at least one year of continuous service receives the full gratuity, calculated with the same 21- and 30-day rates as any other end of service.
The one-third and two-thirds reductions for resignation came from the old Federal Law No. 8 of 1980, which Article 73(1) of Federal Decree-Law No. 33 of 2021 repealed.
One transitional rule remains: Article 68(3) lets the employer calculate the gratuity under the 1980 law's provisions for an unlimited contract concluded under that law.
Three things do change the amount: days of unpaid absence are left out of the service period (Article 51(4)), the gratuity follows the last basic wage you were entitled to (Article 51(5)), and the employer may deduct amounts due under the law or a court judgment (Article 51(7)).
Alternative end of service savings scheme
MOHRE operates a voluntary Alternative End-of-Service Benefits System. Instead of accruing a lump sum at the end of service, employers contribute monthly into approved investment funds on the employee's behalf.
Under this scheme the contributions are invested and can grow over time, and the employee receives the accumulated value when they leave. Participation is currently optional and runs alongside the traditional gratuity system.
Which UAE employment framework applies?
The federal private-sector formula is not universal. Part-time and job-sharing employees use a contractual annual-hours ratio; temporary and flexible arrangements can require MOHRE confirmation.
ADGM has its own 365-day formula and a 50% total-Wages floor. DIFC generally uses DEWS or another qualifying scheme, where statutory employer contributions are separate from the invested account balance.
Federal Government and Dubai Government use different scales. Other emirates and special entities may have separate HR laws, while UAE and GCC nationals are normally routed through the applicable pension authority.
End of service gratuity for domestic workers
Domestic workers fall under Federal Decree-Law No. 9 of 2022 on Domestic Workers, not under Article 51 of the Labour Law. Article 22 of that law leaves the gratuity mechanism to the Cabinet, and the law does not publish one general numerical formula.
Choosing "Domestic worker" in the calculator therefore shows no amount: Payslip.ae names the rule and links its official source instead of reusing the private-sector figure. Check the employment contract and the current MOHRE decision.
Gratuity and EOSB: frequently asked questions
Who is eligible for gratuity in the UAE?
Private-sector employees generally become eligible after completing at least one year of continuous service, subject to UAE Labour Law and the terms of their contract.
Is UAE gratuity calculated on basic salary or total salary?
It is calculated on basic salary and generally excludes allowances such as housing, transport, utilities and furniture.
How is gratuity calculated for the first five years?
You receive 21 days of basic wage for each completed year of service in the first five years. The daily wage is your monthly basic salary divided by 30.
What happens after five years of service?
For each year beyond the first five you earn 30 days of basic wage per year, on top of the 21-day rate applied to the first five years.
When must the employer pay end-of-service benefits?
Employers must pay outstanding wages, entitlements and gratuity within 14 days from the date the contract ends.
What is the maximum gratuity in the UAE?
Article 51 states that total gratuity must not exceed two years of the worker's Wage. Basic Wage remains the basis of the 21/30-day accrual.
Do I get gratuity if I resign?
Yes. Under Article 51 of Federal Decree-Law No. 33 of 2021 an employee who resigns after at least one year of continuous service is entitled to the full gratuity, calculated the same way as for any other end of service.
Is gratuity still reduced to one-third or two-thirds if I resign?
No. Those reductions came from the old Federal Law No. 8 of 1980, which Federal Decree-Law No. 33 of 2021 repealed (Article 73(1)). Under Article 51 a full-time foreign employee who resigns after at least one year of continuous service receives the full gratuity: 21 days of basic wage for each of the first five years and 30 days for each further year, capped at two years’ wage. One transitional rule remains: Article 68(3) lets the employer calculate the gratuity under the 1980 law’s provisions for an unlimited contract concluded under that law.
Does it matter whether my contract is limited or unlimited?
Under the current law every employment contract is fixed-term. Article 8(3) of Federal Decree-Law No. 33 of 2021 requires a specified term, renewable by agreement, and Article 68(2) required employers to convert unlimited (undefined-term) contracts made under the old Federal Law No. 8 of 1980 into fixed-term ones. Federal Decree-Law No. 14 of 2022 removed the original three-year maximum term. Article 51 sets one gratuity formula, with no separate rates for limited and unlimited contracts; only Article 68(3) lets the employer apply the 1980 law to an unlimited contract concluded under it.
Official sources used
Mainland private sector: Articles 51, 53 and 67 of UAE Federal Decree-Law No. 33 of 2021; free-zone, government and scheme regimes follow their own law, cited next to the result. Last reviewed: 2026-09-23.
- UAE Government Portal — End of service benefits (private sector)
- DIFC — Employment Law and Qualifying Schemes
- ADGM — Employment Regulations 2024
- UAE Legislation — Federal Government HR Executive Regulation
- UAE Legislation — Domestic Workers Law
- GPSSA — End-of-service calculator
- MOHRE — Alternative End-of-Service Benefits System
- UAE Legislation — Federal Decree-Law No. 33 of 2021
Disclaimer
* This calculation is an estimate, not legal advice. Based on UAE Federal Decree-Law No. 33 of 2021 and applicable amendments. Last reviewed: 2026-09-23. The employment contract, the law that actually applies (the DIFC and ADGM free zones have their own employment laws) and any decision of MOHRE or a court prevail over this estimate — verify with MOHRE or a qualified adviser.