UAE Gratuity Calculator 2026 — End of Service Benefits
Calculate your exact End of Service Benefits (EOSB) under the updated UAE Labour Law. Accurately prorates days worked across the 21-day tier (first 5 years) and the 30-day tier (subsequent years).
Article 51 Rules & Formulas
- Under 1 Year (< 365 Days): No statutory gratuity is owed if employment terminates before completing 1 full year.
- First 5 Years (1 to 1,825 Days): 21 days' basic wage for each year of service, prorated for fraction of the year.
- Beyond 5 Years (> 1,825 Days): 30 days' basic wage for each additional year of service, prorated.
- Statutory Cap: The total severance benefit cannot exceed the aggregate of 2 years' basic wage.
UAE End of Service Gratuity Rules: Article 51
A definitive legal guide to calculating severance pay, basic salary rules, and employee rights under Federal Decree-Law No. 33 of 2021.
Statutory Gratuity Tiers Under Article 51
Daily wage = (Basic Monthly Salary × 12) / 365 days.
Each year above 5 years yields 30 calendar days of basic pay.
Important Legal Protection: Under the unified labour law reforms, the old distinction between limited and unlimited contracts with respect to resignation reductions has been abolished. All qualifying employees who complete at least one continuous full year of employment are entitled to full prorated gratuity.
How is end of service gratuity calculated in the UAE?
Is UAE gratuity calculated on basic salary or total gross salary?
Is there a statutory maximum cap on UAE gratuity?
When must the employer pay the end-of-service settlement?
How to calculate EOSB in UAE?
What is gratuity in UAE?
How many years do you need to get gratuity in UAE?
Is gratuity mandatory in UAE?
Can my employer refuse to pay gratuity in UAE?
UAE Gratuity Calculator — Example Calculations
Sample end of service gratuity estimates at different salary levels and service durations under Article 51.
| Basic Salary (AED) | Years of Service | Tier Applied | Estimated Gratuity (AED) |
|---|---|---|---|
| 5,000 | 2 years | 21-Day Only | ~6,904 |
| 10,000 | 5 years | 21-Day Only | ~34,521 |
| 15,000 | 7 years | 21 + 30 Day | ~80,548 |
| 20,000 | 10 years | 21 + 30 Day | ~167,671 |
| 25,000 | 15 years | 21 + 30 Day | ~331,507 |
In-Depth Gratuity & Labour Law Guides & Statutory Analysis
Explore our comprehensive library of 7 authoritative guides covering UAE Federal Decree-Law No. 33 of 2021 Regulating Labour Relations (Articles 29, 51 & 53).
How to Calculate End of Service Gratuity in UAE: Article 51 Formula (21-Day & 30-Day Tiers With Exact Examples)
Under Article 51 of UAE Federal Decree-Law No. 33 of 2021 (Regulating Labour Relations in the Private Sector), every full-time foreign employee who completes 1 full continuous year (365 calendar days) of service is legally entitled to a lump-sum End of Service Gratuity (EOSB) upon contract termination. The statutory formula awards 21 calendar days of Basic Salary per year for the first 5 years of service, and 30 calendar days of Basic Salary per year for every subsequent year beyond 5 years.
Resignation vs Termination in UAE Labour Law: Do You Lose Gratuity When Resigning Under Unlimited/Fixed Contracts?
One of the most important pro-employee reforms in UAE history took effect under Federal Decree-Law No. 33 of 2021: the UAE completely abolished "Unlimited Contracts" and eliminated the old 1980 Labour Law rule that reduced an employee's gratuity by two-thirds (1–3 years) or one-third (3–5 years) when resigning! In 2026, whether you resign voluntarily or are terminated by your employer, you receive 100% of your full 21-day/30-day gratuity after completing 1 year of service.
Basic Salary vs Allowances in UAE Gratuity: When Commissions, Bonuses & Housing Count Toward EOSB
Under Article 51(5) of Federal Decree-Law No. 33 of 2021, UAE End of Service Gratuity is calculated strictly on the employee's last drawn "Basic Wage" (Basic Salary), excluding any housing, transport, travel, overtime, representation, childrens' education, or recreational allowances. However, UAE Cassation Court rulings establish a critical exception for sales professionals, real estate agents, and relationship managers: regular contractual sales commissions and piece-rate pay form part of the Basic Wage for gratuity!
The 14-Day Final Settlement Rule (Article 53): How to File a MOHRE Complaint If Your Employer Delays Gratuity
Under Article 53 of UAE Federal Decree-Law No. 33 of 2021, an employer is legally required to pay all end-of-service entitlements—including your End of Service Gratuity (EOSB), final month's salary, and unused annual leave encashment—within strictly 14 calendar days from the date your employment contract ends. Moreover, under the 2024–2026 amendment to Article 54, MOHRE now has direct judicial power to issue final, immediately enforceable executive judgments for any labour claim up to AED 50,000!
Unused Annual Leave Encashment in UAE (Article 29): How Leave Payout Is Calculated in Your Final Settlement
When you leave a job in the UAE, your Final Settlement includes two major lump-sum payouts alongside your final month's salary: your End of Service Gratuity (Article 51) and your Unused Annual Leave Encashment (Article 29). Under Article 29(9) of Federal Decree-Law No. 33 of 2021 and Article 19 of Cabinet Resolution No. 1 of 2022, any accrued untaken annual leave days must be paid out in cash calculated on your Basic Wage.
How Unpaid Leave, Maternity Leave & Probation Period Affect Your UAE Gratuity Service Days
When computing your total calendar days of service for UAE End of Service Gratuity (EOSB), which days are included from Day 1 and which days are legally subtracted? Under Article 51(4) of Federal Decree-Law No. 33 of 2021, your initial probation period, paid annual leave, maternity leave, and paid sick leave count 100% toward your gratuity tenure—whereas days of unpaid leave ("leave without pay") or unexcused absence are deducted from your total service days.
UAE Voluntary End-of-Service Savings Scheme (Cabinet Decision No. 96 of 2023) & DIFC DEWS Explained
Under Article 51(8) of the UAE Labour Law and Cabinet Decision No. 96 of 2023, the UAE launched the Voluntary Alternative End-of-Service Benefits (EOSB) Savings Scheme—modeled on the successful DIFC Employee Workplace Savings (DEWS) plan. Instead of waiting until termination to pay an unfunded lump-sum gratuity, participating employers contribute 5.83% (Years 1–5) or 8.33% (Year 6+) of an employee's monthly Basic Salary directly into a regulated investment fund managed by licensed providers (such as Lunate, National Bonds, Daman Investments, or First Abu Dhabi Bank).