UAE Gratuity Calculator
Updated August 2026 · Based on UAE Labour Law (Federal Decree-Law No. 33 of 2021)
Estimate your end-of-service gratuity (EOSB) under UAE Labour Law. Enter your basic monthly salary and length of service to calculate it instantly.
Quick answer
UAE gratuity (end-of-service benefit, or EOSB) is a lump sum your employer pays when you leave a job, calculated on your basic salary. After one year of service you earn 21 days' basic pay for each of the first five years and 30 days' pay for each year after that, and may not exceed the wage of two years — a cap this calculator applies on a basic-wage reading, as explained below (Federal Decree-Law No. 33 of 2021).
Want the reasoning rather than the number? Read the complete UAE gratuity calculation guide — the formula, the two-year cap, worked examples, and the pre-2022 rules that no longer apply.
| Length of service | Gratuity entitlement |
|---|---|
| Less than 1 year | No gratuity |
| 1 to 5 years | 21 days' basic pay per year |
| After 5 years | 30 days' basic pay per year |
| Maximum (cap) | The wage of two years under the law; this calculator applies a basic-wage reading |
| Daily wage basis | Basic monthly salary ÷ 30 |
How is gratuity calculated in the UAE?
Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), end-of-service gratuity is paid on the employee's basic salary and depends on length of continuous service. The calculation is:
- Less than 1 year: no gratuity is payable.
- First 5 years: 21 days of basic pay for each year of service.
- After 5 years: 30 days of basic pay for each additional year.
- Daily wage: basic monthly salary ÷ 30.
- Cap: total gratuity may not exceed the wage of two years. The law does not state whether that is basic or total wage; this calculator uses basic.
Worked example 1 — under five years
Basic AED 8,000, 4 years of service
Daily wage = 8,000 ÷ 30 = AED 266.67
Days earned = 21 × 4 = 84 days
Gratuity = 84 × 266.67 = AED 22,400
Worked example 2 — crossing the five-year mark
Basic AED 8,000, 8 years of service
First 5 years = 21 × 5 = 105 days
Years 6 to 8 = 30 × 3 = 90 days
Total = 195 days × 266.67 = AED 52,000
The higher 30-day rate applies only to service beyond five years. It does not retrospectively upgrade the first five, which is the most common misreading of the rule.
Worked example 3 — part years
Basic AED 6,000, 3 years and 7 months of service
Daily wage = 6,000 ÷ 30 = AED 200
Days = 21 × 3 = 63, plus 21 × (7 ÷ 12) = 12.25 → 75.25 days
Gratuity = 75.25 × 200 = AED 15,050
Part years are normally calculated proportionately rather than rounded down to completed years. What does move the figure is the one-year minimum and the five-year step.
Worked example 4 — where the cap bites
Basic AED 15,000, 28 years of service
First 5 years = 21 × 5 = 105 days
Years 6 to 28 = 30 × 23 = 690 days
Uncapped = 795 days × 500 = AED 397,500
Cap = 2 years' basic wage = 15,000 × 24 = AED 360,000
Payable = AED 360,000
On the 30-day convention, the two-year cap equals 720 days of basic pay. The first five years use 105 of those days, leaving 615, which at 30 days a year covers a further 20.5 years — so the cap is reached at about 25 years and 6 months of service. Beyond that point additional years add nothing to the gratuity.
On the daily wage. The official guidance sets the entitlement in days of basic pay — 21 and 30 — and states that gratuity is calculated on basic salary. The guidance pages reviewed do not themselves prescribe the arithmetic for turning a monthly salary into a daily one. This calculator uses basic ÷ 30, consistent with the 30-day month the annual-leave entitlement is expressed in. A contract specifying a different basis would produce a different figure.
One point on the cap is genuinely unsettled. The law caps the benefit at "the wage of two years" without stating whether that means two years of basic wage or two years of total wage. This calculator, and the wording on this page, apply the basic-wage reading, which is the more conservative of the two.
It only affects employees with very long service — below about 25 and a half years the cap does not come into play at all. If it applies to you, take advice on the specific facts.
Important notes
- Gratuity is based on basic salary only — housing, transport and other allowances are excluded.
- Days of unpaid absence are not counted toward length of service.
- This calculator covers full-time contracts. Other work models are treated differently under the law.
- The employer may deduct amounts the employee owes from the gratuity, and must pay it within 14 days of contract end. Deduction is not a general right of set-off — a disputed amount is a matter for MOHRE rather than unilateral withholding.
Estimate for guidance only — this is not legal advice. Entitlements vary by contract and by the circumstances of the exit, and the law is amended from time to time. Confirm your position with MOHRE or a qualified adviser before relying on a figure.
Primary source: Federal Decree-Law No. 33 of 2021, summarised on u.ae — End-of-service benefits. Reviewed August 2026.
Frequently asked questions
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