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UAE Gratuity Calculator

Calculate your UAE end-of-service gratuity (EOSB) for limited and unlimited contracts under UAE Labour Law — accurate 2024/2025 calculation.

UAE End-of-Service Gratuity Calculator

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How to Calculate UAE Gratuity (End-of-Service Pay)

Under UAE Federal Labour Law (Federal Decree-Law No. 33 of 2021), every employee who completes at least one year of continuous service is entitled to end-of-service gratuity. The calculation is based on the basic salary only — housing, transport, and other allowances are excluded.

UAE Gratuity Formula (2024/2025)

  • First 5 years: 21 calendar days' basic salary per year of service
  • Beyond 5 years: 30 calendar days' basic salary per year of service
  • Daily wage = Basic Monthly Salary ÷ 30
  • Maximum cap: Total gratuity cannot exceed 2 years' total basic salary

Resignation Deductions (Unlimited Contract)

  • Less than 1 year: No gratuity
  • 1–3 years: 1/3 of the calculated gratuity
  • 3–5 years: 2/3 of the calculated gratuity
  • 5+ years: Full gratuity

Under the 2022 Labour Law reform, unlimited contracts are being phased out. New contracts from February 2022 onwards are all limited (fixed-term, maximum 3 years, renewable). If terminated without cause on a limited contract, you receive full gratuity regardless of years served.

Gratuity for Freezone Employees

Employees in DIFC, ADGM, and other freezones may fall under different regulations. DIFC has its own Employee Workplace Savings (DEWS) scheme which replaced traditional gratuity for DIFC employees from February 2020. Always verify with your HR department which law applies.

Frequently Asked Questions