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UAE End of Service Calculator 2026
Work out end-of-service gratuity under UAE Labour Law, and see what else belongs in a final settlement. The amount updates as you type.
Updated 11 June 2026 · Federal Decree-Law No. 33 of 2021 (UAE Labour Law)
Full gratuity after one year of service. Resigning no longer reduces it under the 2021 law.
How the amount is worked out
Three steps, shown with your own figures once you enter them.
- Find the daily basic
Basic salary ÷ 30Gratuity uses the last drawn basic salary, without allowances.
- 21 days a year for the first five years
Daily basic × 21 × yearsPart years count pro rata once one full year is complete.
- 30 days a year after that
Daily basic × 30 × years over 5The total is capped at 2 years' basic salary.
In this article
What are end of service benefits (EOSB) in UAE?
End of service benefits (EOSB) is the complete final settlement a UAE employee receives when employment ends. The largest component is the end-of-service gratuity, but a correct settlement also includes unused leave encashment, unpaid wages, and any notice pay — all payable within 14 days of the last working day under Federal Decree-Law No. 33 of 2021.
What your final settlement must include
- Gratuity: 21 days' basic pay per year (first 5 years), 30 days per year after — capped at 2 years' salary
- Leave encashment: accrued unused annual leave at basic salary
- Unpaid wages: salary and approved overtime up to the last working day
- Notice pay: payment in lieu of notice, where applicable
- Contractual benefits: e.g. repatriation ticket if your contract provides one
Full EOSB worked example (2026)
Basic salary AED 10,000 · 6 years of service · 10 unused leave days:
- Daily rate = AED 10,000 ÷ 30
- AED 333.33
- Gratuity (first 5 years) = 5 × 21 × 333.33
- AED 35,000.00
- Gratuity (year 6) = 1 × 30 × 333.33
- AED 10,000.00
- Leave encashment = 10 × 333.33
- AED 3,333.33
- Total EOSB (+ any unpaid salary)
- AED 48,333.33
Use the calculator above for the gratuity portion with your own figures, and the leave salary calculator for your exact leave encashment.
The 14-day payment rule
Employers must pay the entire end-of-service settlement within 14 days of the last working day. If your employer misses this deadline, you can file a complaint with MOHRE. Keep your contract, salary certificates, and leave records as evidence — see our guide to notice periods and final settlement timelines for details.
Worked example: a full final settlement
Take an employee leaving after 4 years on AED 12,000 total salary (AED 8,000 basic), with 10 untaken annual-leave days and 5 days of outstanding wages. Their end-of-service settlement adds up like this:
| Component | How it's calculated | Amount |
|---|---|---|
| Gratuity (4 years) | 4 × 8,000 × 21/30 | AED 22,400 |
| Leave encashment (10 days) | 8,000 ÷ 30 × 10 | AED 2,667 |
| Outstanding wages (5 days) | 12,000 ÷ 30 × 5 | AED 2,000 |
| Notice pay (served in full) | — | AED 0 |
| Total final settlement | AED 27,067 |
Leave encashment and gratuity both use basic salary; outstanding wages use total salary. Enter your own figures above for your exact settlement.
Calculate your specific scenario
Gratuity rules differ slightly by how employment ends: gratuity on resignation, limited contract gratuity, or explore the full UAE gratuity & end-of-service guide and the UAE gratuity guide 2026.
Questions, answered.
A UAE final settlement includes: (1) end-of-service gratuity calculated on basic salary (21 days per year for the first 5 years, 30 days per year after), (2) encashment of accrued unused annual leave at basic salary, (3) any unpaid salary or overtime up to the last working day, (4) payment in lieu of notice if applicable, and (5) any other benefits stated in the employment contract, such as a repatriation flight ticket.
The gratuity portion is calculated on your last drawn basic salary: 21 days' pay per year for the first 5 years of service and 30 days' pay per year beyond 5 years, capped at 2 years' total salary. Daily rate = basic salary ÷ 30. Unused annual leave is added on top at the same daily rate. You must complete at least 1 year of continuous service to qualify for gratuity.
Gratuity is the largest component of end of service benefits (EOSB), but EOSB is broader. EOSB refers to the complete final settlement: gratuity plus unused leave encashment, unpaid wages, notice pay where applicable, and contractual benefits. The terms are often used interchangeably, but your final settlement should itemize each component separately.
Under UAE Labour Law, employers must pay all end-of-service entitlements within 14 days of the employee's last working day. Delays beyond 14 days can be reported to MOHRE, and the employer may face penalties. The 14-day rule covers the entire settlement, not just the gratuity portion.
No. The UAE imposes no personal income tax, so the full end of service settlement — gratuity, leave encashment, and unpaid wages — is paid tax-free. However, if you transfer the funds abroad, tax rules in your home country may apply depending on its laws and tax treaties.
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