Dubai Gratuity Calculator 2026 | UAE End of Service Benefits
Use this free UAE gratuity calculator to work out your exact end of service benefit under Federal Decree-Law No. 33 of 2021 — 21 days per year for the first 5 years, then 30 days per year after that, capped at two years of basic salary.
UAE End of Service Gratuity Calculator
Enter your basic monthly salary (from your labour contract, excluding allowances) and your total years of service.
Based on AED 0 daily basic wage and 0 gratuity days.
How UAE Gratuity Works (Federal Decree-Law No. 33 of 2021)
End of service gratuity is a statutory entitlement for employees in the UAE private sector, calculated on your basic salary (not your full package) and your length of continuous service.
| Length of Service | Gratuity Entitlement |
|---|---|
| Less than 1 year | No gratuity |
| First 5 years | 21 days of basic salary per year |
| Each year beyond 5 | 30 days of basic salary per year |
| Maximum cap | Two years of basic salary |
Key Rules to Know
- Gratuity is computed on your basic salary only — housing and transport allowances are excluded.
- The daily rate is basic salary ÷ 30.
- Partial years are counted pro-rata, so even a few extra months add to your entitlement.
- The cap of two years’ basic salary only bites for very long service (typically 20+ years).
End of Service Benefits (EOSB) in the UAE: What the Term Actually Covers
People searching for an “EOSB calculator” and a “gratuity calculator” are usually after the same number. End of service benefits is the broader term used in UAE labour law. Gratuity is its main component, and the final settlement can also include salary still unpaid, accrued but unused annual leave, notice period pay where it applies, and anything else written into your offer letter.
Gratuity is the part with a fixed statutory formula, and it is the part this calculator works out:
- Earned on basic salary only, with allowances excluded.
- 21 days of basic salary for each of the first 5 years of service.
- 30 days of basic salary for each additional year.
- At least one year of continuous service is required.
- The total is capped at two years of basic salary.
Free Zone Employees: DMCC, JAFZA, DIFC and ADGM
Free zones are not a single regime, and this is where a generic calculator misleads people.
Most free zones, including DMCC and JAFZA
Employment in most UAE free zones follows the federal labour framework, so the formula above applies: 21 days per year for the first five years, 30 days thereafter, on basic salary. Employment terms still vary between free zone employers, so the first thing to read is the governing law clause in your own contract, not the name of the free zone on your visa.
ADGM (Abu Dhabi Global Market)
ADGM has its own employment regulations. Its gratuity entitlement looks similar, but two details change the number:
- The daily rate is basic wage divided by 365, not by 30 as in the federal formula.
- Basic wage may not be less than 50% of total wages, so a low-basic, high-allowance split is not structured the same way.
ADGM also counts successive fixed-term contracts toward total service. Source: ADGM Employment Regulations, section 61.
DIFC (Dubai International Financial Centre)
DIFC operates under a separate employment law and has been moving away from the lump sum model. For covered employers, end of service gratuity is being replaced by a funded workplace savings scheme, where contributions are paid monthly instead of accruing into one payment when you leave. If you work in DIFC, check the DIFC regime and your employer’s enrolment status, because a federal gratuity calculation will not give you the correct figure.
Working in a free zone and unsure which regime applies? The governing law clause in your employment contract settles it. That is the one line worth reading first.
FAQ: UAE Gratuity
How is gratuity calculated in the UAE?
Under Federal Decree-Law No. 33 of 2021, you earn 21 days of basic salary for each of the first 5 years, and 30 days of basic salary for each additional year of service.
Do I get gratuity if I resign before one year?
No. An employee who completes less than one year of continuous service is not entitled to any end of service gratuity.
Is gratuity calculated on basic salary or full salary?
Gratuity is calculated on your basic salary only, excluding housing and transport allowances. Your basic salary is stated in your labour contract.
Is there a cap on gratuity in the UAE?
Yes. In all cases, the total end of service gratuity may not exceed two years of basic salary.
How do I calculate my end of service benefits (EOSB) in the UAE?
Divide your basic monthly salary by 30 to get your daily basic wage. Multiply that by 21 days for each of the first five years of service, and by 30 days for every additional year, then add the two figures. The result is capped at two years of basic salary.
Is EOSB the same as gratuity?
No, gratuity is the main component of EOSB rather than a synonym for it. End of service benefits is the umbrella term for everything payable when employment ends, and your final settlement can also include unused annual leave and other contractual entitlements alongside the gratuity.
Do free zone employees in Dubai get gratuity?
In most free zones, including DMCC and JAFZA, gratuity follows the federal formula: 21 days per year for the first five years and 30 days per year after that, calculated on basic salary. The two financial free zones differ. ADGM uses basic wage divided by 365, and DIFC applies its own employment law and a funded savings scheme instead of a lump sum.
Why is the ADGM gratuity calculation different from the federal one?
ADGM sets its own daily rate, dividing basic wage by 365 instead of 30, so the same basic salary produces a lower daily figure than under the federal formula. ADGM also requires basic wage to be at least 50% of total wages, which limits how far an employer can shift pay into allowances.
Need an Independent Gratuity Check?
Leaving a job and want an independent gratuity review, or need help with a labour dispute over your final settlement? Let me handle it on the ground in Dubai.
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Disclaimer: This calculator reflects the end of service gratuity framework under Federal Decree-Law No. 33 of 2021 for general guidance only. It is not legal advice. Confirm with MOHRE and your employment contract before acting.