Uae Gratuity Calculator






UAE Gratuity Calculator | Calculate End of Service Benefits (EoSB) 2026


UAE Gratuity Calculator

Calculate your End of Service Benefits (EoSB) based on the 2026 UAE Labor Law


Enter only the basic component of your salary, excluding allowances.
Please enter a valid positive salary.


Used to calculate the maximum legal gratuity cap (2 years’ total salary).
Total salary cannot be less than basic salary.


The date you officially started working.


The final day of your employment or notice period.


Number of days taken as unpaid leave (these are excluded from service).


AED 0.00
Total Service Period:
0 Years, 0 Months
Daily Basic Rate:
AED 0.00
Gratuity Eligible Days:
0 Days

Note: Under UAE law, employees with less than 1 year of service are not eligible for gratuity.

Gratuity Growth Projection

The chart above shows your calculated payout (Green) relative to the 2-year salary cap (Blue).

Summary of Calculation Tiers
Service Bracket Calculation Base Maximum Benefit
Less than 1 Year 0 Days None
1 to 5 Years 21 Days per Year 105 Days Basic
More than 5 Years 30 Days per Year (after 5th) Up to 2 Years Total Salary

Complete Guide to UAE Gratuity Calculator and End of Service Benefits

What is uae gratuity calculator?

The uae gratuity calculator is an essential financial tool used by employees and employers in the United Arab Emirates to determine the “End of Service Benefit” (EoSB). This mandatory payment is a lump sum granted to workers who have completed at least one year of continuous service. Using a uae gratuity calculator ensures that both parties comply with the UAE Labor Law (Federal Decree-Law No. 33 of 2021).

Who should use it? Anyone working in the private sector, as well as HR professionals managing payroll. Common misconceptions include thinking that all of your salary is used for calculation; in reality, only your basic salary is the foundation of the uae gratuity calculator. Another myth is that you lose gratuity if you resign, which is no longer true under the current labor laws for most contracts.

Understanding the uae gratuity calculator helps you plan your financial future after leaving a job in Dubai, Abu Dhabi, or any other Emirate.


uae gratuity calculator Formula and Mathematical Explanation

The logic behind a uae gratuity calculator follows a tiered approach based on the length of tenure. Here is the step-by-step derivation:

  • Service < 1 Year: 0 payout.
  • Service 1-5 Years: (Basic Salary / 30) * 21 * Years of Service.
  • Service > 5 Years: The first 5 years are calculated at 21 days, and every subsequent day is calculated at 30 days of basic salary.
Variables for uae gratuity calculator
Variable Meaning Unit Typical Range
B Monthly Basic Salary AED 2,000 – 100,000+
T Total Monthly Salary AED 3,500 – 150,000+
Y Years of Service Years 1 – 35 Years
U Unpaid Leave Days 0 – 365 Days

The total result from the uae gratuity calculator cannot exceed the equivalent of two years’ worth of your total salary (Basic + Allowances).


Practical Examples (Real-World Use Cases)

Example 1: Mid-Term Career Move

An employee has a basic salary of AED 12,000 and has worked for 4 years.
The uae gratuity calculator would process this as:
(12,000 / 30) * 21 * 4 = AED 33,600.
Interpretation: The employee receives a healthy payout to assist with their transition between roles.

Example 2: Long-Term Tenure

An employee has a basic salary of AED 20,000 and has worked for 8 years.
The uae gratuity calculator logic:
Years 1-5: (20,000 / 30) * 21 * 5 = AED 70,000.
Years 6-8: (20,000 / 30) * 30 * 3 = AED 60,000.
Total: AED 130,000.
Interpretation: Senior employees benefit significantly from the 30-day rule after the five-year milestone.


How to Use This uae gratuity calculator

  1. Enter your Monthly Basic Salary as stated in your labor contract.
  2. Enter your Total Monthly Salary (including housing, transport, etc.) to calculate the legal cap.
  3. Select your Joining Date and Last Working Day.
  4. Subtract any Unpaid Leave days taken during your service.
  5. Review the uae gratuity calculator primary result shown in the green box.
  6. Check the intermediate values to see how the years were split.

This uae gratuity calculator is designed for the private sector. If you are in the public sector, different pension rules may apply.


Key Factors That Affect uae gratuity calculator Results

  • Basic vs. Total Salary: The most critical factor for a uae gratuity calculator. Allowances like travel or housing are usually excluded from the base calculation but included in the cap.
  • Length of Service: Reaching the 5-year mark is a major milestone for increasing your daily accrual rate.
  • Unpaid Leave: Any day you were not paid (excluding sick leave and annual leave) reduces your total service period in the uae gratuity calculator.
  • Contract Type: Under the 2021 law, most unlimited contracts are being converted to limited-term contracts, standardizing the uae gratuity calculator rules.
  • Reason for Leaving: While the new law simplified this, certain “gross misconduct” terminations (Article 44) could historically lead to loss of gratuity, though this is rare and requires legal proof.
  • Legal Cap: No matter how long you stay, the uae gratuity calculator will cap your benefit at 24 months of your total salary.

Frequently Asked Questions (FAQ)

1. Does the uae gratuity calculator include commissions?

Usually no, unless your contract explicitly states that commissions are part of your “Basic Salary.”

2. What if I have worked for less than a year?

The uae gratuity calculator will show zero, as the law requires at least 12 months of service.

3. Does maternity leave affect the uae gratuity calculator?

Paid maternity leave counts as continuous service and does not reduce your gratuity.

4. Can my employer deduct debts from my gratuity?

Yes, employers can legally deduct outstanding loans or costs of damaged company property from the uae gratuity calculator final amount.

5. Is gratuity paid in a lump sum?

Yes, it must be paid within 14 days of the end of the contract according to the new UAE Labor Law.

6. Does annual leave balance count towards service?

The uae gratuity calculator uses your last working day. Any encashed annual leave is separate from your gratuity payout.

7. Are part-time employees eligible for the uae gratuity calculator?

Yes, but the calculation is pro-rated based on the hours worked compared to full-time equivalent.

8. Is there tax on the gratuity payout in the UAE?

No, the UAE does not currently impose personal income tax on gratuity benefits calculated by the uae gratuity calculator.


Related Tools and Internal Resources

© 2026 UAE Gratuity Calculator Tool. All rights reserved. Always consult with a legal professional or the MOHRE for official cases.


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