How UAE gratuity is calculated
End-of-service gratuity (EOSB) is a lump sum your employer must pay when your employment ends. For mainland private-sector employees it is set by Federal Decree-Law No. 33 of 2021 and is based on your basic salary only — housing, transport and other allowances are excluded.
The formula
- You must complete at least 1 year of continuous service to qualify.
- For the first 5 years: 21 days of basic pay for each year.
- For each year after 5: 30 days of basic pay per year.
- Your daily rate is your basic monthly salary ÷ 30.
- The total gratuity cannot exceed 2 years' total wage.
Example: AED 10,000 basic, 6 years
Daily rate = 10,000 ÷ 30 = AED 333.33. First 5 years = 5 × 21 = 105 days → AED 35,000. Year 6 = 30 days → AED 10,000. Total gratuity = AED 45,000 (the 2-year cap of AED 240,000 is not reached).
Important notes
- This applies to mainland (onshore / MOHRE) private-sector employment. Some free zones (e.g. DIFC and ADGM) run their own end-of-service schemes that differ.
- Only basic salary counts — if your contract splits pay into basic + allowances, the allowances are excluded.
- Unpaid leave days may be deducted from your total service.
Frequently asked questions
Do I get gratuity if I resign?
Yes. Under the 2022 law, once you have completed at least one year of service you receive the full gratuity whether you resign or are terminated.
Is gratuity on my total salary or basic?
Basic salary only. Allowances such as housing and transport are not included.
What if I worked less than a year?
You are not entitled to gratuity for service under one year. After one year, partial years are pro-rated.
Is there a maximum?
Yes — total gratuity cannot exceed the equivalent of two years' total wage.
More UAE calculators
This calculator provides estimates for mainland UAE private-sector employment under Federal Decree-Law No. 33 of 2021 and is for general information only — it is not legal advice. It uses basic salary and the standard ÷30 daily-rate convention; free zones (DIFC, ADGM) and specific contract terms may differ. For your exact entitlement see u.ae or MOHRE. Source: UAE Government (u.ae), Federal Decree-Law 33/2021 Art. 51.