UAE Gratuity Calculator — End of Service Benefit Guide (2026)
Updated October 2026 · 5 min read
Quick start: Open the free UAE Gratuity Calculator — enter your basic salary and years of service to see your exact end of service entitlement.
End of service gratuity (EOSB) is a lump-sum payment UAE employers must pay to employees leaving after one or more years of continuous service. It is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (effective February 2022), which updated the older Labour Law of 1980.
The UAE Gratuity Formula
Gratuity is calculated on basic salary only — housing, transport and other allowances are excluded.
Years 1–5:
Gratuity = (Basic salary ÷ 30) × 21 × Years of service
Years beyond 5:
Gratuity = (Basic salary ÷ 30) × 30 × Additional years
In plain terms: 21 days' basic pay for each year in the first 5 years, then 30 days' basic pay for every year after that.
Worked Example
Employee with AED 10,000 basic salary, 7 years of service:
- Daily rate: AED 10,000 ÷ 30 = AED 333.33
- First 5 years: AED 333.33 × 21 × 5 = AED 35,000
- Next 2 years: AED 333.33 × 30 × 2 = AED 20,000
- Total gratuity: AED 55,000
Key Rules Under the 2022 UAE Labour Law
| Scenario | Gratuity entitlement |
|---|---|
| Service under 1 year | No gratuity |
| Employee resigns (1–5 years) | Full gratuity (new law removed the old resignation penalty) |
| Employee resigns (5+ years) | Full gratuity |
| Terminated by employer | Full gratuity |
| Dismissed for gross misconduct | Employer may forfeit gratuity (Article 44) |
| Maximum cap | Gratuity cannot exceed 2 years' total basic salary |
DIFC and ADGM Employees
Employees working in the Dubai International Financial Centre (DIFC) or Abu Dhabi Global Market (ADGM) are governed by their own employment laws, which differ from the mainland. DIFC introduced a mandatory Employee Workplace Savings (DEWS) scheme in 2020, replacing the traditional gratuity model for most DIFC employees. Check your employment contract to confirm which law applies to you.
Calculate Your UAE Gratuity
Enter basic salary, years of service and contract type — get your exact EOSB entitlement under UAE Labour Law.
Open Free UAE Gratuity Calculator →