UAE Gratuity Calculator (Dubai, Abu Dhabi, Sharjah) – Calculate End of Service Benefits Online
If you searched for a UAE gratuity calculator, gratuity calculator Dubai, end of service calculator UAE, or gratuity calculation in UAE labour law, this page is built to answer that exact intent. Use the calculator below to estimate your end of service gratuity based on UAE Federal Decree-Law No. 33 of 2021. Enter your basic salary, service dates, contract type, and reason for leaving to get an instant, detailed breakdown of your EOSB entitlement.
Gratuity is the single largest financial entitlement most private-sector employees in the UAE receive at the end of their employment. Understanding the calculation correctly means understanding which salary component applies (basic only, not gross), how the 21-day and 30-day formulas work, how resignation differs from termination, and why your contract type matters. This guide covers all of those mechanics with real examples, comparison tables, and the legal references behind every number.
As of March 31, 2026, the calculation rules on this page reflect the current UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which replaced the older Federal Law No. 8 of 1980. The gratuity provisions are found in Articles 51–53 of the current law. The Ministry of Human Resources and Emiratisation (MOHRE) administers these rules uniformly across Dubai, Abu Dhabi, Sharjah, and all other emirates.
Calculate Your UAE Gratuity
📋 Employment Details
💰 Basic Monthly Salary
📅 Service Period
Total Gratuity (EOSB)
Calculation Breakdown
Gratuity Computation
How to Use This UAE Gratuity Calculator
The fastest way to use this tool is to enter your basic monthly salary, select your start and end dates, choose your contract type and reason for leaving, and watch the results update in real time. If your main question is simply "how much gratuity will I receive?" this is enough for a reliable estimate. If your question is more nuanced — such as gratuity calculation in UAE labour law, eosb calculation in UAE, or final settlement UAE calculation — the detailed guide below covers every variable.
The calculator uses basic salary only. This is not a design limitation — it reflects how UAE law actually works. Allowances for housing, transport, phone, commission, and bonuses are excluded from the gratuity computation under UAE Labour Law. Many employees make the mistake of using their total package or gross salary, which produces an inflated and legally inaccurate estimate.
Service period is calculated automatically from your start and end dates. The calculator handles partial years proportionally, so if you worked 4 years and 8 months, the gratuity reflects 4.667 years of service. Years, months, and days are displayed in the read-only fields so you can verify the calculation matches your actual employment duration.
UAE Gratuity Law Explained
Gratuity in the UAE is governed by UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which came into effect on 2 February 2022. This law replaced the older Federal Law No. 8 of 1980. The gratuity provisions are found in Articles 51, 52, and 53 of the current decree-law. Many older sources still reference "Article 132" of the 1980 law — which contained the original gratuity rules — but the current legal framework is the 2021 decree.
Eligibility Rules
- Minimum 1 year of continuous service is required for gratuity eligibility
- Applies to all private sector employees in the UAE, regardless of nationality
- Free zone employees may have different rules depending on the free zone authority
- All seven emirates follow the same federal law — Dubai, Abu Dhabi, Sharjah, Ajman, RAK, UAQ, and Fujairah
- Probation period (up to 6 months) counts toward the total service period if the employee continues working
Legal Reference: Articles 51–53 of UAE Federal Decree-Law No. 33 of 2021 (Regulation of Labour Relations). This law governs all private-sector employment contracts, including gratuity calculations, across the entire UAE. The Ministry of Human Resources and Emiratisation (MOHRE) administers and enforces these provisions.
Gratuity Formula in UAE
The gratuity formula UAE uses two tiers based on years of service. Understanding this formula is essential whether you are an employer computing final settlements or an employee verifying your entitlement.
UAE Gratuity Formula:
Daily Wage:
\[ \text{Daily Wage} = \frac{\text{Basic Monthly Salary}}{30} \]
First 5 Years of Service (21 days per year):
\[ \text{Gratuity}_{1\text{-}5} = 21 \times \text{Daily Wage} \times \text{Years (up to 5)} \]
Beyond 5 Years of Service (30 days per year):
\[ \text{Gratuity}_{5+} = 30 \times \text{Daily Wage} \times (\text{Total Years} - 5) \]
Total Gratuity:
\[ \text{Total} = \text{Gratuity}_{1\text{-}5} + \text{Gratuity}_{5+} \]
Cap: Total gratuity cannot exceed the equivalent of 2 years' total wages.
Real-Life Gratuity Calculation Examples
Example 1: 2 Years of Service — Termination
Scenario: AED 8,000 Salary, 2 Years, Terminated by Employer
Step 1: Daily Wage = AED 8,000 ÷ 30 = AED 266.67
Step 2: First 5 years formula: 21 × 266.67 × 2 = AED 11,200
Step 3: No beyond-5-years component
Total Gratuity = AED 11,200
Example 2: 5 Years of Service — Resignation (Unlimited Contract)
Scenario: AED 12,000 Salary, 5 Years, Resigned
Step 1: Daily Wage = AED 12,000 ÷ 30 = AED 400
Step 2: Gross Gratuity = 21 × 400 × 5 = AED 42,000
Step 3: Resignation reduction (3–5 years unlimited): 2/3 of gratuity
Net Gratuity = AED 42,000 × 2/3 = AED 28,000
Example 3: 7 Years of Service — Termination
Scenario: AED 15,000 Salary, 7 Years, Terminated by Employer
Step 1: Daily Wage = AED 15,000 ÷ 30 = AED 500
Step 2: First 5 years: 21 × 500 × 5 = AED 52,500
Step 3: Beyond 5 years: 30 × 500 × 2 = AED 30,000
Total Gratuity = AED 52,500 + AED 30,000 = AED 82,500
Example 4: 10 Years — Resignation (Unlimited Contract, Full Entitlement)
Scenario: AED 20,000 Salary, 10 Years, Resigned (5+ years = full gratuity)
Step 1: Daily Wage = AED 20,000 ÷ 30 = AED 666.67
Step 2: First 5 years: 21 × 666.67 × 5 = AED 70,000
Step 3: Beyond 5 years: 30 × 666.67 × 5 = AED 100,000
Step 4: No reduction (5+ years resignation = full gratuity)
Total Gratuity = AED 70,000 + AED 100,000 = AED 170,000
Contract Type Breakdown: Limited vs Unlimited
Under the 2021 law, all new contracts in the UAE are technically fixed-term (limited) contracts, with a maximum duration of 3 years. However, many existing employment relationships still operate under unlimited contract terms that were signed before February 2022. Understanding the distinction is critical because it directly affects gratuity entitlements upon resignation.
| Aspect | Limited Contract (Fixed Term) | Unlimited Contract |
|---|---|---|
| Duration | Specified end date (max 3 years) | No fixed end date |
| Gratuity on Termination | Full gratuity entitlement | Full gratuity entitlement |
| Gratuity on Resignation | Full gratuity (if contract completed) | Reduced if under 5 years of service |
| Resignation Reduction | None (contract completion) | 1–3 yrs: 1/3, 3–5 yrs: 2/3, 5+ yrs: full |
| Current Usage | All new contracts post-Feb 2022 | Pre-Feb 2022 contracts only |
Resignation vs Termination: Impact on Gratuity
The reason for leaving employment directly affects how much gratuity you receive. Employees who are terminated by their employer generally receive the full calculated gratuity. Employees who voluntarily resign from an unlimited contract may receive a reduced amount based on length of service.
| Service Duration | Termination by Employer | Resignation (Unlimited Contract) |
|---|---|---|
| Less than 1 year | No gratuity | No gratuity |
| 1–3 years | Full gratuity (21 days/year) | 1/3 of calculated gratuity |
| 3–5 years | Full gratuity (21 days/year) | 2/3 of calculated gratuity |
| 5+ years | Full gratuity (21 + 30 days) | Full gratuity (no reduction) |
Key Insight: This reduction only applies to unlimited contracts. If you are on a limited (fixed-term) contract and complete the contract term, you receive full gratuity regardless. Early resignation from a limited contract may result in different obligations depending on contract terms.
End of Service Benefits (EOSB) in UAE
The term EOSB (End of Service Benefits) is commonly used in the UAE to refer to the gratuity payment. However, end of service benefits can encompass more than just gratuity. In the broadest sense, EOSB includes all financial entitlements an employee receives upon leaving employment.
The difference between gratuity and EOSB is primarily one of scope. Gratuity is the calculated payment based on years of service and basic salary. EOSB, in practice, usually refers to the same gratuity amount, but in a complete final settlement context, it sits alongside other payable items.
Final Settlement in UAE
A final settlement is the complete financial package an employer must pay an employee when employment ends. It includes several components beyond gratuity.
| Component | Description | Calculation Basis |
|---|---|---|
| Gratuity (EOSB) | End of service benefits based on tenure | 21/30 days formula on basic salary |
| Pending Salary | Unpaid salary up to last working day | Daily rate × remaining days |
| Annual Leave Encashment | Payment for unused annual leave days | Basic salary ÷ 30 × unused leave days |
| Notice Period Pay | Payment in lieu of notice period | Salary for notice period duration |
| Repatriation Ticket | Air ticket to home country | Employer obligation for expat employees |
Gratuity Calculator Dubai
Dubai follows the same UAE Federal Labour Law as all other emirates. If you are searching for a gratuity calculator Dubai, this tool computes the exact same calculation that applies across the entire UAE. Whether you work in Dubai Internet City, DIFC, JLT, or Downtown, the gratuity formula, eligibility rules, and resignation reduction percentages are identical. DIFC employees should note that DIFC has its own employment law (DIFC Law No. 2 of 2019), which may have different provisions.
Gratuity in Abu Dhabi
Abu Dhabi private-sector employees are covered by the same UAE Federal Decree-Law No. 33 of 2021. Employees working in ADGM (Abu Dhabi Global Market) should check ADGM's own employment regulations as they operate under a separate legal framework similar to DIFC. For all other Abu Dhabi employees, this end of service calculator Abu Dhabi produces accurate results.
Gratuity in Sharjah
Sharjah follows UAE Federal Labour Law without any additional local modifications to gratuity calculations. If you are searching for gratuity calculator Sharjah, the formula and entitlements are exactly as described on this page.
MOHRE Reference: The UAE Ministry of Human Resources and Emiratisation (MOHRE) is the official government body that oversees labour relations, including gratuity and EOSB matters. Employees with disputes can file complaints through the MOHRE website or visit a Tasheel service centre. This calculator is aligned with the official UAE guidelines published by MOHRE as of March 31, 2026.
Dynamic Gratuity Table
Use the table below to quickly look up estimated gratuity amounts for common salary levels and service durations. This table assumes termination by employer (full gratuity, no resignation reduction).
| Basic Salary (AED) | 1 Year | 2 Years | 3 Years | 5 Years | 7 Years | 10 Years |
|---|
Gratuity Reference Tables
Salary vs Gratuity (5 Years Service, Termination)
| Monthly Basic Salary | Daily Wage | Gratuity (5 Years) |
|---|---|---|
| AED 3,000 | AED 100.00 | AED 10,500 |
| AED 5,000 | AED 166.67 | AED 17,500 |
| AED 8,000 | AED 266.67 | AED 28,000 |
| AED 10,000 | AED 333.33 | AED 35,000 |
| AED 15,000 | AED 500.00 | AED 52,500 |
| AED 20,000 | AED 666.67 | AED 70,000 |
| AED 25,000 | AED 833.33 | AED 87,500 |
Years of Service vs Gratuity (AED 10,000 Salary, Termination)
| Years of Service | Formula Applied | Total Gratuity |
|---|---|---|
| 1 year | 21 × 333.33 × 1 | AED 7,000 |
| 2 years | 21 × 333.33 × 2 | AED 14,000 |
| 3 years | 21 × 333.33 × 3 | AED 21,000 |
| 5 years | 21 × 333.33 × 5 | AED 35,000 |
| 7 years | 35,000 + 30 × 333.33 × 2 | AED 55,000 |
| 10 years | 35,000 + 30 × 333.33 × 5 | AED 85,000 |
| 15 years | 35,000 + 30 × 333.33 × 10 | AED 135,000 |
| 20 years | 35,000 + 30 × 333.33 × 15 | AED 185,000 |
Common Gratuity Calculation Mistakes
- Using gross salary instead of basic salary. Gratuity is based on basic salary only. Including housing allowance, transport allowance, or other benefits produces an inflated and incorrect estimate.
- Ignoring the contract type. Resignation from an unlimited contract with less than 5 years of service results in reduced gratuity. Many employees assume they will receive the full amount regardless.
- Wrong daily wage calculation. The daily wage for gratuity purposes is basic salary ÷ 30, not salary ÷ 22 (working days) or salary ÷ 26. The divisor of 30 is fixed by law.
- Forgetting the 2-year cap. Total gratuity cannot exceed the equivalent of 2 years' total remuneration.
- Counting probation separately. Probation period counts toward total service if the employee continues after probation.
- Not accounting for partial years. An employee with 3 years and 7 months of service is entitled to gratuity for 3.583 years, not just 3 years.
Frequently Asked Questions
Below are the most commonly asked questions about gratuity in UAE, EOSB, and end of service calculation. Each answer is based on the current UAE Federal Decree-Law No. 33 of 2021.
How is gratuity calculated in UAE?
UAE gratuity is calculated on basic salary only. For the first 5 years of service, the formula is 21 days' wages per year. Beyond 5 years, it increases to 30 days' wages per year. Daily wage is calculated as basic monthly salary divided by 30. Partial years are prorated proportionally.
What is the gratuity formula in UAE?
First 5 years: (Basic Salary ÷ 30) × 21 × Years of Service. Beyond 5 years: (Basic Salary ÷ 30) × 30 × (Total Years − 5). The total is capped at 2 years' total wages.
What is EOSB in UAE?
EOSB stands for End of Service Benefits. It refers to the gratuity payment private-sector employees receive upon leaving employment. Eligibility requires at least 1 year of continuous service.
Is gratuity calculated on basic salary or gross salary?
Basic salary only. Allowances including housing, transport, phone, and commission are excluded from the gratuity calculation.
What is the minimum service for gratuity eligibility?
One year of continuous service. Employees with less than 1 year are not entitled to any gratuity.
What happens to my gratuity if I resign?
If you resign from an unlimited contract: less than 1 year = no gratuity; 1–3 years = 1/3 of gratuity; 3–5 years = 2/3 of gratuity; 5+ years = full gratuity. Limited contract completion = full gratuity.
What is the difference between gratuity and final settlement?
Gratuity is one component of the final settlement. The full settlement includes: gratuity, pending salary, annual leave encashment, notice period payment, and repatriation ticket.
Can I calculate gratuity online?
Yes. This UAE gratuity calculator provides instant results. Enter your basic salary, service dates, contract type, and exit type for a detailed breakdown.
Is gratuity the same in Dubai, Abu Dhabi, and Sharjah?
Yes. UAE Federal Labour Law applies uniformly across all emirates. The gratuity formula and eligibility rules are the same everywhere.
What is the maximum gratuity in UAE?
The total gratuity cannot exceed the equivalent of 2 years' total wages (including all allowances for the cap calculation).
How is gratuity calculated for partial years?
Proportionally. Each additional month counts as a fraction of a year (month ÷ 12). For example, 3 years and 6 months = 3.5 years.
Do I get gratuity if terminated during probation?
No. Employees who have not completed 1 year of continuous service are not entitled to gratuity.
What is MOHRE?
MOHRE is the UAE Ministry of Human Resources and Emiratisation. It administers and enforces UAE Labour Law including gratuity rules. Disputes can be filed through MOHRE.
Is gratuity taxable in UAE?
No. The UAE has no personal income tax. Gratuity payments are received tax-free within the UAE.
Can my employer deduct amounts from gratuity?
Yes, employers can deduct documented amounts owed by the employee (loans, advances, damages) from the gratuity payment.
Related Calculators
Explore more UAE and financial calculators on HeLovesMath:
- Bonus Calculator — Calculate after-tax bonus take-home pay
- Depreciation Calculator — Straight-line, declining balance, and MACRS methods
- GPA to Percentage Calculator — Convert GPA to percentage across grading systems
