End of Service Calculator UAE
Work out your end of service benefits under UAE Labour Law: 21 days of basic salary per year for the first 5 years, 30 days per year after that. Free, instant, no sign-up.
End of Service Calculator UAE
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FAQ
Frequently Asked Questions
End of service benefits (EOSB) are the payments you are legally entitled to when your employment ends, whether you resign, complete your contract, or are terminated. The main component is the end of service gratuity, a lump sum based on your basic salary and years of service. A complete final settlement can also include: unused annual leave paid in cash, notice period salary if notice was not served, any unpaid salary or overtime up to your last day, and repatriation costs in the cases the law specifies. The calculator on this page works out the gratuity, normally the largest single amount.
The formula is set by Article 51 of Federal Decree-Law No. 33 of 2021. Step 1: daily wage = your monthly basic salary divided by 30 — only the basic salary counts, allowances such as housing and transport are excluded. Step 2: entitlement days = 21 days of basic salary for each of the first 5 years of service, and 30 days for each year after the fifth, with fractions of a year paid pro-rata. Step 3: multiply the daily wage by the entitlement days. You must complete at least 1 full year of service to qualify, and the total cannot exceed 2 years of basic salary.
Example 1: basic salary AED 10,000, 6 years of service. Daily wage AED 333.33, entitlement 135 days (105 for the first 5 years plus 30 for year 6), gratuity AED 45,000. Example 2: basic salary AED 8,000, 7 years of service. Daily wage AED 266.67, entitlement 165 days (105 plus 60), gratuity AED 44,000.
Partial years are paid pro-rata once you pass the 1-year mark. Example: basic salary AED 12,000, service 7 years and 181 days. Daily wage AED 400. First 5 years: 105 days = AED 42,000. Years 6-7: 60 days = AED 24,000. Part of year 8: 181/365 x 30 days x AED 400 = AED 5,950.68. Total gratuity: AED 71,950.68.
1 year: AED 7,000. 2 years: AED 14,000. 3 years: AED 21,000. 4 years: AED 28,000. 5 years: AED 35,000. 6 years: AED 45,000. 7 years: AED 55,000. 8 years: AED 65,000. 9 years: AED 75,000. 10 years: AED 85,000. Rule of thumb: each of your first 5 years earns 0.7 months of basic salary, and every year after that earns a full month.
No. The old system reduced gratuity on resignation (the old one-third and two-thirds reductions), but Federal Decree-Law No. 33 of 2021 abolished those reductions. After 1 year of service you receive your full gratuity whether you resign or your employer ends the contract. Exceptions: dismissal for gross misconduct under Article 44 can remove the entitlement, and arbitrary (unfair) dismissal may add compensation of up to 3 months of salary on top.
Your settlement statement should show: salary up to your last working day, gratuity, cash payment for unused annual leave, notice period pay where notice was not served, and any legally due repatriation cost, minus only lawful deductions (for example a documented loan or advance). Your employer must pay everything within 14 days of the contract ending. Run your numbers here first, then compare line by line with the statement before you sign the clearance.
The federal formula covers most UAE employees, including most free zones such as DMCC and JAFZA. DIFC employees are covered by the DEWS savings scheme instead (employer contributions of 5.83% of salary in the first 5 years and 8.33% after). ADGM follows its own Employment Regulations 2024, with a different daily-wage basis and no 24-month cap. If you work in DIFC or ADGM, check the free-zone guides on this site rather than relying on the federal formula alone.
Divide your monthly basic salary by 30 to get your daily wage. You earn 21 days of basic salary for each of the first 5 years of service and 30 days for every year after that. Multiply your entitlement days by your daily wage. You need at least 1 year of service, and the total is capped at 2 years of basic salary.
Gratuity is the main cash component of your end of service benefits. The full end of service package can also include unused leave pay, notice period salary, unpaid wages and repatriation costs.
Yes. Under Federal Decree-Law No. 33 of 2021, resigning no longer reduces your gratuity. After 1 year of service you receive the full amount whether you resign or are terminated, except in gross misconduct cases under Article 44.
Within 14 days of your contract ending. This deadline covers gratuity and your other dues together.
No. Gratuity and other end of service benefits are not subject to income tax in the UAE.
Only the basic salary. Allowances such as housing and transport are excluded from the gratuity calculation, which is why the basic salary written in your contract matters so much.
You are not entitled to gratuity below 1 year of service, although your final settlement should still include salary up to your last day and any unused leave as the law provides.
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