UAE End of Service Benefit (EOSB) Gratuity Calculator
Calculate your UAE gratuity entitlement under Federal Decree-Law 33 of 2021. Enter your basic salary and years of service for an instant breakdown — mainland, DIFC DEWS, and ADGM schemes covered.
Signed by: Sarah Al Qasimi (Lead Editor). Fact-checked by the full editorial team.
Built on UAE Federal Decree-Law 33/2021 (effective Feb 2022)
This calculator applies the current UAE Labour Law: 21 days per year for the first 5 years, 30 days per year thereafter, and a 2-year total cap. DIFC and ADGM employees are under separate workplace savings schemes — toggle jurisdiction below for those estimates. Always verify the final figure with your HR department.
Salary details
Gratuity is calculated on basic salary only — not housing allowance, transport, or other benefits.
Service & contract
Under Federal Decree-Law 33/2021 all new contracts are technically limited (max 3 years renewable). The "unlimited" distinction now mainly affects legacy employees hired before Feb 2022.
DIFC and ADGM operate separate workplace savings schemes (DEWS / ADGM WSP) instead of traditional gratuity.
Additional options
Estimated gratuity entitlement
Federal Decree-Law 33/2021 — 4 years on AED 15,000 basic
AED 52,500
19.9% of annual total package
Daily rate (basic / 30)
Years 1–4 × 21 days
Resignation vs completing contract
Under new law (post Feb 2022), resignation and completion are equal for most employees.
Contract completed / redundancy
Full entitlement, no reduction
Resignation (new law)
Equal to completion under Decree-Law 33/2021
Service milestone tracker
365 days until you reach the 5 years milestone.
1 year
Gratuity starts
5 years
Rate steps up to 30 days
10 years
Strong entitlement
Understanding UAE EOSB — the complete guide
The UAE End of Service Benefit (EOSB) — commonly called gratuity — is a statutory lump-sum payment owed to most employees when they leave employment in the UAE. It is governed by Federal Decree-Law No. 33 of 2021 (effective 2 February 2022), which significantly modernised the previous 1980 Labour Law. Every employee on a UAE mainland employment visa with at least one year of continuous service is entitled to gratuity, regardless of nationality.
Federal Decree-Law 33/2021 — key changes
The 2021 law overhauled the UAE employment framework in several important ways that directly affect gratuity calculations:
- One contract type only: Limited (fixed-term) and unlimited (open-ended) contracts were replaced by a single fixed-term contract of up to 3 years, automatically renewable. Legacy unlimited contracts remain valid until they expire or are renewed.
- Resignation no longer reduces gratuity: Under the old unlimited contract rules, employees who resigned received reduced gratuity (1/3 if under 3 years, 2/3 if 3–5 years). This reduction is abolished for contracts under the new law. Legacy unlimited contract holders hired before Feb 2022 may still be subject to the old reduction if they resign — confirm with your HR department.
- Six recognised work models: Full-time, part-time, temporary, flexible, remote, and job-share — each with proportional gratuity entitlements.
- Probation cap at 6 months: Probation cannot exceed 6 months. During probation, employer may terminate with 14 days notice (30 days if joining another UAE employer). No gratuity during probation.
- Equal treatment for termination and resignation: Under the new law, employees who resign in good standing after one year get the same gratuity as those completing their contract.
Gratuity is on basic salary only
UAE law calculates gratuity exclusively on the basic salary. Housing allowance, transport allowance, phone allowance, commission, bonuses, and any other components are excluded. This is critical — if your basic is AED 10,000 out of a AED 20,000 total package, your gratuity base is only AED 10,000. Confirm your contract structure with HR before estimating.
How the mainland EOSB formula works
The calculation uses a daily rate of basic salary ÷ 30. For the first five years, you accumulate 21 days of basic pay per year. From year six onwards, the rate steps up to 30 days per year. Partial years are pro-rated based on the number of days worked in the final year. The total is capped at 2 years' basic salary (24 months).
DIFC DEWS scheme explained
Employees working within the Dubai International Financial Centre (DIFC) are not covered by mainland labour law. Since January 2020, the DIFC Employee Workplace Savings (DEWS) scheme replaced the old DIFC gratuity system:
- Employer contribution — Years 1–5:5.83% of monthly basic salary paid into the employee's DEWS account each month.
- Employer contribution — Year 6+: 8.33% of monthly basic salary.
- Real investment account: Unlike mainland gratuity (which is a notional calculation), DEWS is a real money account held with Zurich International Life. Contributions are invested in default passive funds or employee-selected portfolios. The balance can grow (or shrink) based on investment performance.
- Employee voluntary contributions: Employees can add their own contributions on top of the employer contribution, with the option to invest in a broader fund menu.
- Portable between DIFC employers: When moving between DIFC employers, the account stays with the employee. No reset on the contribution rate.
- Withdrawable on leaving DIFC employment: Full balance is available when you leave DIFC-licensed employment. You can elect to keep it invested or withdraw.
ADGM Workplace Savings Plan
The Abu Dhabi Global Market (ADGM) introduced its own Workplace Savings Plan in August 2023, replacing the ADGM gratuity system. The employer contribution rates mirror DEWS: 5.83% per month for the first 5 years, stepping up to 8.33% from year 6 onwards. Contributions are held in a regulated savings vehicle managed by an ADGM-registered provider.
Free zone vs mainland — verify your employment authority
Each UAE free zone (JAFZA, DAFZA, Dubai South, RAKEZ, SAIF Zone, etc.) falls under either UAE mainland labour law or its own employment regulations. Most free zones follow Federal Labour Law for gratuity purposes. DIFC and ADGM are the only two jurisdictions with fully separate employment law frameworks. Always check whether your free zone employment contract is governed by UAE Federal Law or the free zone authority's own rules.
Federal vs DIFC vs ADGM — scheme comparison
Gratuity by tenure — sample calculations
All figures assume no partial year, no cap hit (except where noted), and new-law contracts (no resignation reduction). AED 15K and AED 25K basic salary examples.
Gratuity scenarios at common salary levels
| Item | Price |
|---|---|
AED 12,000 basic — 3 years 21 days/yr × 3 yrs × (12,000/30) | AED 25,200 |
AED 12,000 basic — 5 years 21 days/yr × 5 yrs | AED 42,000 |
AED 12,000 basic — 10 years 5 yrs at 21d + 5 yrs at 30d | AED 102,000 |
AED 18,000 basic — 3 years 21 days/yr × 3 yrs | AED 37,800 |
AED 18,000 basic — 5 years 21 days/yr × 5 yrs | AED 63,000 |
AED 18,000 basic — 10 years 5 yrs at 21d + 5 yrs at 30d | AED 153,000 |
AED 25,000 basic — 3 years 21 days/yr × 3 yrs | AED 52,500 |
AED 25,000 basic — 7 years 5 yrs at 21d + 2 yrs at 30d | AED 137,500 |
AED 25,000 basic — 15 years 5 yrs at 21d + 10 yrs at 30d | AED 337,500 |
AED 40,000 basic — 5 years 21 days/yr × 5 yrs | AED 140,000 |
AED 40,000 basic — 10 years 5 yrs at 21d + 5 yrs at 30d | AED 340,000 |
AED 40,000 basic — 20 years 2-year cap = AED 960,000 applies | AED 960,000 (capped) |
AED 60,000 basic — 5 years 21 days/yr × 5 yrs | AED 210,000 |
AED 60,000 basic — 10 years 5 yrs at 21d + 5 yrs at 30d | AED 510,000 |
AED 60,000 basic — 15 years 2-year cap = AED 1,440,000 applies | AED 1,440,000 (capped) |
How to claim your gratuity — 5 steps
- 1
Formal resignation or end of contract
Submit a written resignation with notice period (typically 30 days for staff, up to 90 days for senior employees as per contract) or confirm your end-of-contract date. Keep a copy. Your last working day starts the 14-day employer payment clock. - 2
Settle outstanding accounts
Return company property, clear expense claims, ensure your MoHRE record is clean. Employers can deduct legitimate financial obligations — salary advances, unreturned loans, and documented damages — from your gratuity. Outstanding DEWA or telecom bills are your personal responsibility and cannot be deducted from gratuity by the employer. - 3
Request gratuity calculation in writing
Ask HR for a written breakdown of the gratuity calculation showing basic salary used, years of service, daily rate, and deductions. Compare against your own calculation. If the figures differ, raise it formally in writing before signing any settlement agreement. - 4
File a MoHRE complaint if disputed
If your employer refuses to pay, pays late (beyond 14 days after last working day), or underpays, file a complaint through the Ministry of Human Resources and Emiratisation (MoHRE) online portal or call centre. MoHRE will attempt conciliation; unresolved cases proceed to the Labour Court. Interest and penalties can be awarded against employers for delayed payment. - 5
Final salary and visa cancellation
Your employer is required to pay all outstanding salary, unused annual leave (converted to cash), and gratuity as part of final settlement, typically before or on visa cancellation. Ensure you receive a bank transfer or cheque, not a promissory note. Keep the bank receipt. After final settlement, apply for visa cancellation or your new employer's visa transfer.
How to calculate your gratuity yourself — 4 steps
- 1
Confirm your basic salary
Check your employment contract for the line item labelled "basic salary". This is typically separate from housing allowance, transport allowance, and any other components. If your contract states a single "consolidated salary", ask HR for the breakdown — the gratuity base is the basic component only. - 2
Count your complete years of service
From your start date (day 1 on the employment contract) to your last working day. Complete years only count for the full 21/30-day rate; the final partial year is pro-rated by days worked ÷ 365. - 3
Apply the formula
Daily rate = basic salary ÷ 30. For each of the first 5 complete years: add 21 × daily rate. For each complete year from year 6 onwards: add 30 × daily rate. Add the partial year: (days worked in final year ÷ 365) × (21 or 30 × daily rate, depending on which tier you are in). Example: AED 15,000 basic, 7 complete years, 182 days in final year. Daily rate = 500. Y1-5 = 500 × 21 × 5 = AED 52,500. Y6-7 = 500 × 30 × 2 = AED 30,000. Partial year = 500 × 30 × (182/365) = AED 7,479. Total = AED 89,979. - 4
Check the 2-year cap
Multiply your monthly basic salary by 24. If your calculated gratuity exceeds this figure, the capped amount applies. Example: AED 15,000 × 24 = AED 360,000. If calculation yields AED 380,000, the final gratuity is AED 360,000.
Outstanding debts can reduce your payout
Your employer can legally deduct from your gratuity: unpaid salary advances, company loans that have not been repaid, and documented financial damages to company property. They cannot deduct personal bank loans, credit card bills, or MoHRE-contested amounts without a court order. If you have an MoHRE absconding mark or unresolved labour complaint, resolve these before your last day.
14-day payment window
Employers must pay gratuity within 14 daysof the employee's last working day. Delays beyond this window can result in penalties and interest under UAE Labour Law. If not paid on time, file immediately with MoHRE — delays in reporting weaken your case.
Old unlimited-contract resignation rule — now largely abolished
Before Federal Decree-Law 33/2021, employees on unlimited contracts who resigned received reduced gratuity: 1/3 if service was 1–3 years, 2/3 if 3–5 years, and the full amount only after 5 years. This rule no longer applies to employees hired under the new law (after Feb 2022). If you were hired before Feb 2022 and your original unlimited contract has not been converted or renewed under the new law, confirm your situation with HR or an employment lawyer.
Federal mainland gratuity vs DIFC DEWS — pros and cons
Federal mainland gratuity — advantages
- Predictable, formula-based entitlement — no investment risk.
- Simple to calculate and verify independently.
- No employer default risk on contributions — it is an obligation at exit.
- Applies to the vast majority of UAE workers across all sectors.
- Cap at 2 years protects against long-term employer exposure.
Federal mainland gratuity — disadvantages
- No real money accumulates — it is only a calculation at exit.
- No growth potential — not inflation-adjusted.
- Cap at 2 years can significantly limit returns for long-serving senior employees.
- Employer insolvency risk — gratuity is an unsecured creditor claim.
- Based on basic salary, which employers can structure low to reduce liability.
DIFC DEWS — advantages
- Real money in a segregated investment account — protected from employer insolvency.
- Investment growth potential through market-linked funds.
- Portable between DIFC employers — no reset when you change jobs within DIFC.
- Employee can make voluntary contributions and choose their own fund allocation.
- No 2-year cap — contributions accumulate indefinitely.
DIFC DEWS — disadvantages
- Investment risk — account value can fall in bear markets.
- Administration by a third-party provider adds complexity.
- Only available for DIFC-licensed employer employees — a very small subset.
- Employee contributions are not tax-advantaged (no UAE tax anyway, but no home-country benefit).
- Fund fees reduce net returns — check the expense ratios on default and optional funds.
UAE EOSB gratuity — frequently asked questions
Disclaimer
This calculator is for educational and illustrative purposes only. It does not constitute legal or employment advice. Results are based on Federal Decree-Law No. 33 of 2021 and Cabinet Resolution 1/2022 as of April 2026. Individual circumstances — contract terms, free zone rules, legacy entitlements, and employer-specific policies — may affect actual entitlements. Consult a qualified employment lawyer or MoHRE for case-specific guidance.