UAE End of Service Benefits (EOSB) Gratuity Calculator
Instantly calculate statutory end-of-service severance liabilities, daily wage equivalents, and monthly balance sheet reserve accruals in AED.
UAE Labor Law Rule: Under Article 51 of Federal Decree-Law No. 33 of 2021, gratuity is calculated strictly on the basic wage, excluding allowances. A 30-day divisor is standard across UAE labor dispute tribunals.
Statutory Calculation Breakdown
How UAE End-of-Service Gratuity Is Calculated Under Federal Decree-Law No. 33 of 2021
Under Article 51 of UAE Federal Decree-Law No. (33) of 2021 Regarding the Regulation of Employment Relationships (and its Executive Regulations under Cabinet Resolution No. 1 of 2022), every full-time foreign worker who completes one year or more of continuous service with an establishment is entitled to statutory End-of-Service Benefits (EOSB) upon contract termination or resignation. Because the 2021 law standardized all mainland employment relationships onto fixed-term contracts, the legacy reductions for employee resignation (1/3 or 2/3 reductions under the repealed 1980 law) no longer apply.
1. Daily Basic Wage Base
Gratuity is calculated strictly on the employee's last drawn monthly basic wage divided by 30 calendar days (`Daily Basic Wage = Basic Salary / 30`). Housing, transport, education, utility allowances, and discretionary bonuses are excluded unless an employment contract explicitly states otherwise.
2. 21-Day & 30-Day Service Tiers
• Years 1 to 5: 21 calendar days of basic wage for each year of service (up to 105 days for 5 full years).
• Beyond Year 5: 30 calendar days of basic wage for each additional year of service, prorated to the exact day for partial years, capped at 2 years' total salary.
3. Unpaid Leave & 14-Day Settlement Rule
Under Article 51(4), any days of unpaid absence are deducted from the total service duration before computing gratuity. Under Article 53, employers must settle all final wages and EOSB within 14 calendar days of the contract termination date.
Worked Example: 6 Years & 6 Months of Service at AED 15,000 Basic Salary
• Step 1 — Daily Basic Wage: AED 15,000 ÷ 30 days = AED 500.00 per day.
• Step 2 — Tier 1 (First 5 Years): 5 years × 21 days/year = 105 days × AED 500 = AED 52,500.
• Step 3 — Tier 2 (Remaining 1.5 Years): 1.5 years × 30 days/year = 45 days × AED 500 = AED 22,500.
• Total Statutory Gratuity: AED 52,500 + AED 22,500 = AED 75,000 (representing 150 days of basic pay, well within the AED 360,000 2-year cap).
Automate monthly IFRS/IAS-19 gratuity balance-sheet accruals, unpaid leave proration, MoHRE WPS SIF file generation, and Emiratisation quota tracking using AuraOS HCM and DaftarAcc Accounting.
Frequently Asked Questions: UAE Gratuity & Labor Law
Comprehensive legal and financial guidance regarding End of Service Benefits calculation under UAE Federal Decree-Law No. 33 of 2021.
Under the current UAE Labor Law, employees completing at least one continuous year of service receive 21 days' basic salary for each year of the first five years, plus 30 days' basic salary for each year thereafter. The total entitlement is legally capped at 2 years' (24 months) basic salary.