UAE Gratuity Calculator
Calculate your End-of-Service Benefits (EOSB) accurately according to the new UAE Labor Law (Federal Decree-Law No. 33 of 2021).
Do not include housing or transport allowances.
Note: Under the 2021 Labor Law, resignation and contract type no longer reduce the payout. The formula remains strictly 21 days for the first 5 years and 30 days thereafter.
How is UAE Gratuity Calculated in 2026?
Under the New UAE Labor Law (Federal Decree-Law No. 33 of 2021), which came into effect in February 2022, the calculation of End-of-Service Benefits (EOSB) has been unified. The previous reductions applied to employees resigning under unlimited contracts have been abolished.
The Gratuity Formula
Your gratuity payout is based solely on your Basic Salary (excluding allowances like housing or transportation) and your Length of Service:
- Less than 1 year: No gratuity entitlement (0 days).
- First 5 years: 21 days of basic wage for each year of service.
- Above 5 years: 30 days of basic wage for each additional year.
Note: The total gratuity payout cannot exceed the equivalent of two years' full wage.
Does Resignation or Contract Type Matter?
No. Under the new law, whether you resign or are terminated, and whether you were on a limited or unlimited contract previously, the calculation remains exactly the same. All contracts in the UAE are now fixed-term contracts, and the old resignation penalty tiers (e.g., receiving only 1/3 or 2/3 of gratuity) no longer apply.
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