UNITED ARAB EMIRATES

UAE End-of-Service Gratuity Calculator

Calculate your statutory UAE gratuity payout in AED under Federal Decree-Law No. 33 of 2021.

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End of Service Gratuity Calculator — United Arab Emirates

Federal Decree-Law No. 33 of 2021

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AED
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For expatriate employees. UAE nationals, DIFC and ADGM follow other schemes.

Computed service tenure8yrs·91days
First 5 yrs · 21 days / yrBeyond 5 yrs · 30 days / yr

Estimated entitlement

Eligible

AED 337,466

Salary used
AED 50,000
Completed years
8 yrs
Partial year
91 days
Base entitlement
AED 337,466

Year-by-year breakdown

PeriodYearsRateAmount
First 5 yrs5 yrs21 days / yr175,000
Beyond 5 yrs3 yrs30 days / yr150,000
Beyond 5 yrs · part year3 mths30 days / yr12,466
Total337,466
Indicative statutory minimum

How United Arab Emirates calculates it

How end of service gratuity is calculated in the UAE

SALARY BASE
Last basic wage only

Last basic wage only — allowances, commission and bonus are excluded.

MIN. SERVICE
1 year

Expatriate employees with at least 1 year of continuous service.

RESIGNATION
Full — no reduction

No reduction — the same gratuity on resignation, termination or contract expiry.

CAP
2 years' wage

Total gratuity cannot exceed two years' wage. Unpaid leave is not counted as service. Dues are payable within 14 days of the last day.

Governing law: Federal Decree-Law No. 33 of 2021

Frequently asked · United Arab Emirates

Which wage is used to calculate gratuity in the UAE: basic or total salary?

Only your last basic wage is used. Allowances, commission and bonuses are excluded.

Is gratuity payable on resignation in the UAE?

Yes, in full, once you have completed one year of continuous service. The amount is the same on resignation, termination or contract expiry.

Do UAE nationals get end-of-service gratuity?

Generally no. The end-of-service gratuity under the UAE Labour Law applies to expatriate employees. UAE nationals are covered by pension laws instead, and employees in DIFC and ADGM follow separate schemes.

Why do companies need an actuarial valuation of gratuity / End of Service Benefit?

Gratuity is a long-term obligation, and accounting standards such as IAS 19 (and Ind AS 19 or AS 15 in India) require employers to measure it with actuarial methods. A valuation uses assumptions about future salary growth, employee turnover, mortality and discount rates, and it applies the projected unit credit method. For this reason it differs from the statutory calculator above, which shows the amount due today. An actuarial valuation supports the company's financial statements, the audit and funding decisions.

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UAE Cabinet Resolution No. 96 & IAS 19 Valuations

Whether transitioning to EOSB Savings Schemes or reporting under IAS 19, our actuaries help UAE employers measure and report defensible obligations.

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