UAE Gratuity
Calculator
Free, Accurate, UAE Labour Law Compliant
Based on UAE Federal Decree-Law No. 33 of 2021 (End of Service Benefit / EOSB)
End of Service Benefit (EOSB)
Federal Decree-Law No. 33 of 2021
Enter basic salary only. Do not include housing, transport, or other allowances.
Complete years worked.
Remaining months (0–11).
Not Yet Eligible
Employees must complete at least 1 full year of continuous service to be eligible for gratuity under UAE Federal Decree-Law No. 33 of 2021.
Calculation Results
Total End of Service Gratuity
Capped at 2 years' salary (AED )
Daily Wage
Basic Salary ÷ 30
Total Service
Gratuity Breakdown
First 5 Years
Daily wage × 21 days × years
Above 5 Years
Daily wage × 30 days × years
Total Gratuity
Disclaimer: This calculator provides estimates based on UAE Federal Decree-Law No. 33 of 2021. Results are for informational purposes only. Actual gratuity may vary depending on contract type, reason for termination, unpaid leave, and other factors. Consult a qualified HR professional or legal adviser for specific cases.
How UAE Gratuity is Calculated
Step-by-step formula under Federal Decree-Law No. 33 of 2021
Identify Basic Salary
Use basic salary only. Allowances (housing, transport, food) are excluded from the gratuity calculation.
Calculate Daily Wage
Divide the monthly basic salary by 30 calendar days to get the daily wage rate used in the formula.
Daily Wage = Basic Salary ÷ 30
First 5 Years (21 Days/Year)
For each year of service up to and including 5 years, the employee earns 21 days' basic wage.
= Daily Wage × 21 × Years (max 5)
Above 5 Years (30 Days/Year)
For each year of service beyond 5 years, the employee earns 30 days' basic wage per additional year.
= Daily Wage × 30 × (Years − 5)
Apply the 2-Year Cap
The total gratuity is capped at 2 years' total basic salary (Basic Salary × 24 months). If the calculated amount exceeds this cap, the capped amount applies.
Cap = Basic Salary × 24
UAE Law Reference
Federal Decree-Law No. 33 of 2021
"The worker shall be entitled to an end-of-service gratuity upon the completion of one year or more of continuous service... The gratuity shall be calculated on the basis of 21 days' wage for each year of the first five years of service, and 30 days' wage for each year thereafter, provided that the total gratuity shall not exceed the wage of two years."
Article 51, UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations — as amended by Federal Decree-Law No. 20 of 2023.
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Frequently Asked Questions
Common questions about UAE gratuity calculation
Under UAE Federal Decree-Law No. 33 of 2021, gratuity is based on basic salary only. For the first 5 years, employees earn 21 calendar days' basic salary per year. For each year beyond 5 years, they earn 30 calendar days' basic salary per year. The total gratuity is capped at 2 years' total basic salary (24 months).
UAE gratuity is calculated on basic salary only, not total salary. Allowances such as housing, transport, food, telephone, or other benefits are explicitly excluded from the gratuity calculation as per UAE Federal Decree-Law No. 33 of 2021. Always use the basic salary component from the employment contract.
An employee must complete a minimum of 1 full year of continuous service to be eligible for end of service gratuity in the UAE. Employees who resign or are terminated before completing 1 year are not entitled to any gratuity under UAE Federal Decree-Law No. 33 of 2021. Periods of unpaid leave are generally not counted towards service.
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