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UAE Gratuity Calculator — End of Service Benefits (EOSB) Calculator 2026
UAE gratuity (end of service benefit) is a mandatory payment to employees upon termination or resignation. Calculating the correct UAE gratuity amount is essential for employers (to budget correctly) and employees (to know their entitlements). This calculator covers UAE gratuity for 2026.
In this guide:
UAE Gratuity Legal Basis
- Federal Decree-Law No. 33 of 2021 (amended 2022): governs UAE employment and gratuity
- All UAE employees (mainland and free zone, except those under DIFC/ADGM law): entitled to gratuity upon qualifying termination
- Minimum service: 1 year of continuous service required to qualify for gratuity
UAE Gratuity Formula
- First 5 years of service: 21 calendar days of basic salary per year
- After 5 years: 30 calendar days of basic salary per year
- Maximum gratuity: 24 months of basic salary (capped)
- Note: calculation based on BASIC salary only; not total package (does not include housing, transport, or other allowances)
Gratuity Calculation Examples
Example 1: 3 Years Service, AED 10,000 Basic Salary
- Daily wage: AED 10,000 ÷ 30 = AED 333.33/day
- Gratuity: 21 days × AED 333.33 × 3 years = AED 21,000
Example 2: 7 Years Service, AED 15,000 Basic Salary
- Daily wage: AED 15,000 ÷ 30 = AED 500/day
- First 5 years: 21 days × AED 500 × 5 = AED 52,500
- Next 2 years: 30 days × AED 500 × 2 = AED 30,000
- Total gratuity: AED 82,500
Example 3: 10 Years Service, AED 25,000 Basic Salary
- Daily wage: AED 25,000 ÷ 30 = AED 833.33/day
- First 5 years: 21 × AED 833.33 × 5 = AED 87,500
- Next 5 years: 30 × AED 833.33 × 5 = AED 125,000
- Total: AED 212,500 (below AED 600,000 24-month cap at this salary)
UAE DEWS Alternative Scheme
- DIFC Employee Workplace Savings (DEWS): replaces traditional gratuity for DIFC-based companies (and some mainland companies that opt in)
- DEWS: employer contributes 5.83% of basic salary/month (Year 1-5) and 8.33% (Year 5+) to a managed fund account in the employee’s name
- Benefits: employee portability (balance travels with employee globally); employer cashflow (monthly vs lump-sum at end)
When Is UAE Gratuity Paid?
- Termination by employer: full gratuity due within 14 days of last working day
- Resignation by employee: full gratuity due within 30 days of last working day
- Completion of contract (fixed-term): gratuity paid on contract end date
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