UAE End-of-Service Calculator

Gratuity Calculator UAE (Dubai & All Emirates) Calculate your estimated end-of-service benefit

Gratuity Calculator

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01Employment details

Live service duration —

02Basic salary

AED

Use your basic salary rather than your total package. Allowances and commissions are normally excluded.

Enter your basic salary and employment dates to estimate your UAE gratuity and see exactly how the calculation is derived — from daily wage to eligible days to final value.

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Independent informational tool. Not affiliated with the UAE Government or MOHRE.

UAE Gratuity Formula: How Is Gratuity Calculated?

The UAE gratuity calculation is generally based on the employee’s applicable basic wage and eligible period of service. The calculation uses different daily-gratuity rates for the first five years and for subsequent service, subject to the applicable employment regime and current rules.

Master formula

UAE Gratuity Formula

Standard private-sector framework

Salary

Basic monthly salary

Service

Eligible service

Rate

Daily rate bands

Result

Estimated gratuity

Step 1

=

Daily Basic Wage

Step 2

=

Estimated Gratuity

Eligible gratuity days combine the rate for each band (21 days per year for the first five years, 30 days per year after) with the eligible length of service. This is the standard applicable framework — some employment categories follow different rules.

How Is Daily Basic Wage Calculated?

The daily basic wage is the monthly basic salary divided by 30. For a basic salary of AED 6,000, the daily wage is AED 200. This daily figure is then multiplied by the gratuity days that apply to your service.

How Is Daily Basic Wage Calculated?

During the first five years of eligible service, gratuity accrues at 21 days of basic wage for each completed year. The daily wage is multiplied by 21 and then by the number of eligible years.

How Does the 30-Day Rule Work After 5 Years?

Once you pass five years, every additional eligible year is worth 30 days of basic wage instead of 21 — roughly a 43% step up in the annual accrual for that period.

First 5 years Band 1

21

days per year

Applied to each year of eligible service up to and including the fifth year.

After 5 years Band 2

30

days per year

Applied to every eligible year of service beyond the fifth year.

Year 1

Year 1 ── Year 5

Year 5 milestone

Year 6 →

This 21/30 split reflects the standard applicable framework. Not every UAE employee necessarily follows this exact formula — alternative schemes and special regimes exist.

End-of-service explained

What Is End-of-Service Benefit (EOSB)?

End-of-service gratuity, also called an end-of-service benefit (EOSB), is a payment that may be due to an eligible employee when employment ends. In the UAE it is calculated from your basic wage and your eligible length of service.

Arabic term

مكافأة نهاية الخدمة

What does EOSB mean?

EOSB stands for end-of-service benefit the umbrella term for the final employment entitlements an eligible employee may receive when leaving a job. Gratuity is usually the main component, alongside items such as unused leave encashment. See the end-of-service benefits guide.

Is gratuity based on basic salary?

In the standard private-sector framework, yes gratuity is generally calculated on basic wage rather than the full package. Allowances such as housing and transport are normally excluded, though contractual terms can be more generous. The basic salary guide unpacks the distinction.

How EOSB is formed At a glance

Basic salary

Applicable basic wage

+

Years of service

Eligible service period

Result EOSB

End-of-service gratuity payable

End-of-service gratuity payable

What counts?

Basic wage and total package are not the same number — and only one of them normally drives the calculation.

Main basis

Basic salary / basic wage

  • Base monthly wage stated in the contract
  • Drives the 21 / 30-day accrual bands
  • Cross-checked against your applicable regime
Not the basis

Total salary package

  • Housing allowance
  • Transport allowance
  • Other benefits and allowances

Who Is Eligible for Gratuity in the UAE?

Most private-sector employees who complete at least one year of continuous service may be eligible for end-of-service gratuity. Beyond that baseline, eligibility varies by the category of employment and the regime that covers it.

Eligibility depends on your employment category, service period and the applicable UAE rules.

01 Private-sector expatriate employees

Private-Sector Expatriate Employees

Eligible private-sector expatriate employees may receive end-of-service gratuity under the applicable UAE rules, calculated on basic wage once the required service has been completed.

02 UAE and GCC Nationals

UAE and GCC Nationals

Normally covered by the pension and social security system instead, as they and their employers make monthly contributions to a government pension fund.

03 Probation & early service

Private-Sector Expatriate Employees

Your probation period counts towards your service, but you still need one full year in total to qualify.

04 Part-time & flexible work

Part-Time and Flexible Workers

Eligible, with gratuity calculated in proportion to the working hours in your contract.

05 Government sector

Government Employees

Covered by separate pension rules, not the standard private-sector formula.

06 Domestic workers

Domestic Workers

Covered by a separate law and separate end-of-service rules.

Sources & review

UAE Gratuity Rules & Sources

Transparency about what the calculator is based on, when it was last reviewed, and where to verify the framework yourself.

Calculation information

Estimated gratuity

Applicable legal framework

Last reviewed

Official references

UAE Government
September 2026

UAE Government Portal — End of Service Benefits

MOHRE
September 2026

MOHRE — Labour Legislation

DIFC Authority
September 2026

DIFC Employment Law

ADGM
September 2026

ADGM Employment Regulations

FAQ

Questions people ask about UAE gratuity

Transparency about what the calculator is based on, when it was last reviewed, and where to verify the framework yourself.

Gratuity is based on your basic salary. You get 21 days of basic pay for every year worked in your first five years, and 30 days of basic pay for every year after that.

Any expatriate employee who completes at least one year of continuous service is eligible. UAE and GCC nationals are usually covered under pension schemes instead.

Yes. If you have completed one year of continuous service, you get your full gratuity on the standard formula. Resigning does not reduce it. If you do not serve the notice stated in your contract, your employer may deduct notice compensation from your final settlement, but that is a separate amount.

For 3 years of service the formula is (basic salary / 30) x 21 x 3. On a basic salary of AED 5,000 that is about AED 10,500. On AED 10,000 it is about AED 21,000.

Within 14 days of your contract end date, under Article 53 of Federal Decree-Law No. 33 of 2021. This covers your gratuity, your remaining wages, and your other entitlements. If you are not paid in that time, you can file a complaint with MOHRE.

Some employers have joined the UAE’s voluntary alternative end of service savings scheme. In that case your employer pays a monthly contribution into an approved fund instead of holding a lump sum. Gratuity you earned before joining is still protected and paid separately.

The law caps total gratuity at two years of basic salary, no matter how long you have worked.

No. Under Federal Decree-Law No. 33 of 2021 the same 21-day and 30-day formula applies to every private sector contract. The old rules that reduced gratuity for early resignation on unlimited contracts no longer apply. Contract type still matters for your notice period and end date, but not for the calculation itself.

Only in specific proven cases under Article 44, such as fraud, theft, or serious misconduct. Normal termination or resignation does not remove your right to gratuity, and even a misconduct dismissal does not automatically cancel gratuity you have already earned.

No. The UAE has no personal income tax, so you receive your gratuity in full.

It is paid to the employee’s legal heirs, calculated as if the employee had left on the date of passing.

It can. Long unpaid leave periods may not count toward your total years of continuous service, so check with your HR department.