UAE Gratuity Calculator 2026 (End of Service)
Calculate your end-of-service benefits (EOSB) under the UAE Labour Law, based on your basic salary and length of service.
UAE gratuity: how it works
What is gratuity (end-of-service benefits)?
Gratuity - also known as end-of-service benefits or EOSB - is a lump sum your employer must pay when your employment ends, provided you have completed at least one year of continuous service. It applies to full-time private-sector employees under the UAE Labour Law (Federal Decree-Law No. 33 of 2021, Article 51).
How is gratuity calculated in the UAE?
The calculation uses your last basic salary - housing, transport and other allowances are excluded. You earn 21 days of basic pay for each of the first five years of service and 30 days of basic pay for each year after that. Your daily wage is your monthly basic salary divided by 30, and partial years are paid pro rata. The total gratuity cannot exceed two years of basic salary.
The formula, step by step
Daily basic wage = monthly basic salary ÷ 30. For the first five years: daily wage × 21 days × years of service (up to 5). After five years: daily wage × 30 days × the remaining years.
Example: with a basic salary of AED 10,000 and 8 years of service, you receive AED 35,000 for the first five years (333.33 × 21 × 5) plus AED 30,000 for the last three (333.33 × 30 × 3) - AED 65,000 in total.
Do I get gratuity if I resign?
Yes. Under the current Labour Law you are entitled to the full gratuity after one year of service, whether you resign or your contract is terminated. The old rules that reduced gratuity for resigning employees were abolished when the 2022 law came into force.
Who is not covered by this calculation?
Employees with less than one year of continuous service are not entitled to gratuity, and days of unpaid leave do not count as service time. UAE and GCC nationals are usually enrolled in a pension scheme (GPSSA) instead. Employees in the DIFC fall under the DEWS savings plan rather than gratuity, other free zones may have their own rules, and domestic workers are covered by a separate law.
What should I do with my gratuity?
For many people the gratuity is the largest lump sum they will ever receive. Before spending it, compare your options: keeping it in a fixed deposit, paying down expensive debt, or investing it gradually. Our compound interest calculator and SIP calculator show how a lump sum could grow over time - and if you decide to invest, start with our list of regulated brokers in the UAE.
Final note
This calculator gives an educational estimate based on the standard formula. Your final settlement can differ - unpaid leave, unused annual leave, deductions or contract-specific terms all affect the amount. For the official figure, use the MOHRE resources (Ministry of Human Resources and Emiratisation) or confirm with your HR department.