UAE Gratuity Calculator
Calculate your end-of-service benefit (EOSB) in AED. Date picker with automatic service duration, unpaid leave deduction, full final settlement, leave encashment, monthly accrual tracker, domestic worker mode, and DIFC flag.
Enter your details and click Calculate
Gratuity amount and full breakdown appear here
Exclude housing, transport & other allowances
Unpaid leave reduces your service period. Paid leaves do not.
Domestic Worker Mode
Federal Law No. 10 of 2017 · 14 days/year · total salary
I work in DIFC or ADGM
Shows DEWS savings scheme warning
UAE Gratuity Guide 2026
Gratuity — officially the End-of-Service Benefit (EOSB) or مكافأة نهاية الخدمة — is a mandatory lump-sum payment every UAE private-sector employer must pay when an employee leaves after completing at least one year of continuous service. It is governed by Article 51 of Federal Decree-Law No. 33 of 2021, which overhauled UAE employment law on February 2, 2022.
The UAE Gratuity Formula (Article 51)
Daily wage = Basic Salary / 30
First 5 years: Daily wage x 21 x years of service
Beyond 5 years: Daily wage x 30 x additional years
Cap: Total cannot exceed 2 years basic salary (24 months)
Key Rules (2026)
| Rule | Detail |
|---|---|
| Minimum service | 1 year of continuous service. Zero gratuity if under 1 year. |
| Salary basis | Basic salary ONLY. Housing, transport, bonus, overtime all excluded. |
| Resignation | Full gratuity on resignation under current law (same as termination). |
| Unpaid leave | Excluded from service period. Sick and maternity leave count. |
| Maximum cap | 24 months basic salary, regardless of years served. |
| Payment deadline | 14 days after last working day (Article 53). |
| DIFC / ADGM | Uses DEWS savings scheme — not standard gratuity formula. |
| Domestic workers | Federal Law No. 10 of 2017 — 14 days per year using total salary. |
| Most free zones | Follow the same federal formula as the mainland. |
Legacy Unlimited Contract Resignation Table
Applies only if your contract predates February 2022 and has not been renewed since. All unlimited contracts were required to convert to fixed-term by 1 February 2023.
| Service on Resignation | Gratuity Entitlement | vs Termination |
|---|---|---|
| Under 1 year | No gratuity | Same |
| 1–3 years | 1/3 of full amount | Less than termination |
| 3–5 years | 2/3 of full amount | Less than termination |
| 5+ years | Full amount | Same as termination |
Frequently Asked Questions
What counts as basic salary for UAE gratuity?
Only the fixed base pay in your labour contract counts — all allowances excluded: housing, transport, utilities, food, mobile, bonuses, commission, overtime. Check your MOHRE-registered employment contract where basic salary appears as a separate line item.
How do I calculate my UAE gratuity step by step?
Step 1: Divide your basic monthly salary by 30 to get daily wage. Step 2: Multiply daily wage × 21 × years for the first 5 years. Step 3: Add daily wage × 30 × additional years beyond 5. Step 4: Verify total does not exceed 24 months salary (the cap). Step 5: Subtract unpaid leave days from service period before calculating.
Do I get full gratuity if I resign in the UAE?
Under Federal Decree-Law No. 33 of 2021 (since Feb 2022), all contracts are fixed-term and employees receive full gratuity on resignation — same as termination. Old unlimited contract resignation reductions (1/3 or 2/3) only apply if your pre-2022 contract was never renewed after February 2022.
Does unpaid leave reduce my UAE gratuity?
Yes. Days of unpaid absence are excluded from total service period before calculating gratuity. Paid leaves (annual leave, sick leave, maternity leave) count toward service and do not reduce gratuity.
What is included in a UAE final settlement (EOSB)?
A UAE EOSB includes: (1) end-of-service gratuity; (2) unused annual leave encashment (basic salary ÷ 30 × unused days); (3) any unpaid salary for days worked this month; (4) notice period pay if employer terminated without notice; minus lawful deductions. All must be paid within 14 days of last working day per Article 53.
What is the maximum UAE gratuity?
The maximum is 24 months (2 years) of basic salary regardless of years served. For example: AED 10,000 basic salary = AED 240,000 cap.
How is gratuity calculated for domestic workers in UAE?
Domestic workers (housemaids, nannies, private drivers, cooks, gardeners) are covered by Federal Law No. 10 of 2017: 14 days per year using total monthly salary (not just basic). Same 24-month cap applies. Minimum 1 year of service required.
Do DIFC employees get standard UAE gratuity?
No. DIFC employees are covered by DEWS (Dubai Employee Workplace Savings), where employers contribute 5.83% (years 1–5) or 8.33% (years 5+) of basic salary monthly to a savings account. The standard gratuity formula does not apply — check your DEWS portal for your balance.
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Results are for informational purposes only and do not constitute legal, financial, or professional advice. UAE labour and tax laws are subject to change — verify calculations with MOHRE, the FTA, or a licensed UAE legal professional before making decisions. Formula last verified June 2026. Privacy Policy