🧮 Gratuity Calculator Dubai – UAE End-of-Service Benefits
Calculate your end-of-service gratuity under UAE Labour Law. Works for unlimited and limited contracts, resignation, and termination scenarios.
Gratuity in Dubai is calculated as 21 days' basic salary per year for the first 5 years and 30 days' basic salary per year thereafter. You must complete at least 1 year of continuous service to qualify. Total gratuity is capped at 2 years' total salary.
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📖 How Gratuity Is Calculated in Dubai
End-of-service gratuity (also called EOSB) is a legal entitlement for employees in the UAE under Federal Decree-Law No. 33 of 2021. It applies to both unlimited and limited contracts, but the calculation changes based on your years of service and reason for leaving.
Gratuity Formula for Unlimited Contracts
- 1–5 years of service: 21 days' basic salary per year
- 5+ years of service: 30 days' basic salary per year for the additional years
- Maximum cap: 2 years' total salary
Gratuity Formula for Limited Contracts
- 1–5 years: 21 days' basic salary per year
- 5+ years: 30 days' basic salary per year
- If you resign before 5 years: You may not be entitled to gratuity under the old law, but new rules apply differently.
Resignation vs. Termination
If you resign, your gratuity may be reduced or forfeited depending on your contract type and years of service. If you are terminated without cause, you are entitled to full gratuity. If terminated for gross misconduct under Article 44, you may lose gratuity entirely.
For legal guidance on your specific case, speak to our labour lawyers in Dubai.
⚖️ Why Gratuity Matters in the UAE
Gratuity is not a bonus — it is a legal right. Many employees in Dubai lose thousands of dirhams because they don't understand how gratuity is calculated or because employers underpay deliberately.
Common issues we see at Dubai Legal Expert:
- Employers calculating gratuity on total salary instead of basic salary (which is illegal)
- Refusing to pay gratuity after resignation
- Deducting gratuity against "notice period" without legal basis
- Not paying gratuity at all when the employee leaves the country
If you are facing any of these issues, you can file a labour complaint with MOHRE or take your case to the UAE Labour Court. Our labour dispute lawyers in Dubai can help you recover what you are owed.
❓ Frequently Asked Questions
Gratuity is calculated as 21 days' basic salary for each of the first 5 years of service, and 30 days' basic salary for each year after that. The total cannot exceed 2 years' salary. Only basic salary counts — not allowances.
Under the current UAE Labour Law, resignation does not automatically forfeit gratuity. If you have completed 1 year of continuous service, you are entitled to gratuity. However, the calculation may differ for limited contracts. Consult a labour lawyer to confirm your entitlement.
Gratuity is calculated on basic salary only. Allowances such as housing, transport, and phone are not included. If your employer calculates gratuity on total salary, they are overpaying — but if they calculate on less than your actual basic salary, that is illegal.
You can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). If mediation fails, your case goes to the UAE Labour Court. Our labour lawyers in Dubai handle unpaid gratuity claims regularly.
Yes. You can file a labour claim even after leaving the UAE. However, it is easier and faster to resolve it before you leave. If you have already left, contact our team for remote legal assistance.
No. The UAE does not impose income tax on salaries or gratuity. You receive the full amount without deductions.
The maximum gratuity is capped at 2 years' total salary (basic + allowances) or 2 years' basic salary, whichever is applicable under your contract. In practice, this means long-serving employees receive a substantial payout.
Employers are required to pay gratuity within 14 days of the employee's last working day. If they delay, you can file a MOHRE complaint. Our labour dispute lawyers can expedite the process.
💼 Need Help With Your Gratuity Claim?
If your employer is refusing to pay gratuity, calculating it incorrectly, or delaying your end-of-service benefits, our labour lawyers in Dubai can help.
