UAE End of Service Calculator 2026
Calculate your end of service benefits (EOSB) as per UAE Labour Law — gratuity, plus what else belongs in your final settlement. MOHRE-compliant formula.
Last updated: June 11, 2026 · Based on Federal Decree-Law No. 33 of 2021 (UAE Labour Law)
Total Gratuity Payable
AED 0.00
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Book a Free DemoWhat 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 = AED 48,333.33 (+ any unpaid salary)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.
Calculate Your Specific Scenario
Gratuity rules differ slightly by how employment ends: gratuity on resignation, limited contract gratuity, or read the complete UAE gratuity guide 2026.
End of Service Benefits FAQs
What is included in the end of service settlement in UAE?
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.
How are end of service benefits calculated in UAE?
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.
Is end of service benefit the same as gratuity in UAE?
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.
When must end of service benefits be paid in UAE?
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.
Is end of service benefit taxable in UAE?
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.
Automate Final Settlements & EOSB
Book a personalized demo and discover how RadixHR can automate end of service calculations, leave encashment, and final settlements for your entire organization.
Automated EOSB Calculation
Gratuity, leave encashment, and final settlement calculated automatically per UAE Labour Law.
Final Settlement Dashboard
Generate complete final settlement reports including gratuity, leave, and deductions.
Employee Self-Service
Employees can view their projected end of service benefits anytime from the mobile app.
Payroll Integration
Final settlement amounts sync directly with payroll for accurate WPS payments.