UAE · gratuity & VAT

UAE Gratuity Calculator

Work out your end-of-service gratuity (EOSB) for a mainland UAE private-sector job, under the current labour law. Enter your basic monthly salary and your years of service.

AED
Basic salary only — excluding housing, transport and other allowances.
End-of-service gratuity
AED 0
based on your basic salary
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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

✅ Under the current 2022 labour law, gratuity is paid in full whether you resign or are terminated, once you have completed at least one year. The old rule that reduced gratuity for resignations (1/3, 2/3) no longer applies. Gratuity must be paid within 14 days of your contract ending.

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

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.