🇦🇪 UAE · Free tool
ArcHR
Free EOSB calculator based on Federal Decree-Law No. 33 of 2021, Article 51.
DD/MM/YYYY: 01/01/2020
DD/MM/YYYY: 21/09/2026
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Legal basis
Federal Decree-Law No. 33 of 2021, Article 51 — end of service gratuity calculated on basic salary with 21 days per year for the first 5 years and 30 days per year thereafter.
End of service gratuity — also called EOSB — is the payment UAE employers are legally required to make when an employee's contract ends, whether through termination, resignation, or mutual agreement. It is separate from the employee's final salary and any notice period payment.
Gratuity is calculated on basic salary at exit — not total salary. Up to 5 years: 21 working days of basic salary per year. Beyond 5 years: 30 calendar days per year. Daily rate = (Monthly basic × 12) ÷ 365. Minimum service: 1 year.
If the employee resigns, reductions apply under Federal Decree-Law No. 33 of 2021: 1–3 years of service receive one-third; 3–5 years receive two-thirds; 5+ years receive full gratuity. Termination by employer or redundancy typically pays the full calculated amount.
Federal Decree-Law No. 33 of 2021 eliminated the distinction between limited and unlimited contracts. All employment contracts in UAE are now treated as limited-term. Gratuity rules under Article 51 apply equally regardless of contract label.
Gratuity must be paid in the employee's final settlement — alongside the last salary, any accrued leave pay, and notice period compensation. Employers should not settle gratuity after the last salary without including it in the final payment run.
Calculating on total salary instead of basic, not applying resignation reductions, settling gratuity after the last salary, and lacking visibility on liability before exit conversations. ArcHR calculates gratuity liability continuously for all active employees.
UAE gratuity (EOSB) is calculated at 21 days of basic salary per year of service for the first 5 years, and 30 days of basic salary per year for each year beyond 5 years. This is based on Federal Decree-Law No. 33 of 2021, Article 51.
UAE gratuity is calculated on basic salary only — not total salary. Allowances (housing, transport, etc.) are excluded from the gratuity calculation.
Yes, but with reductions for short service: employees who resign after 1–3 years receive one-third of the calculated gratuity; after 3–5 years, two-thirds; after 5 or more years, full gratuity.
An employee must complete at least 1 year of continuous service to be eligible for end of service gratuity in UAE, under Federal Decree-Law No. 33 of 2021.
Under Federal Decree-Law No. 33 of 2021, UAE gratuity is not capped at a maximum number of months. The calculation continues for the full period of service.
Federal Decree-Law No. 33 of 2021 eliminated the distinction between limited and unlimited contracts. All employment contracts are now limited-term, and gratuity applies equally.
There is no personal income tax in the UAE, so UAE gratuity is not subject to income tax for employees.
ArcHR calculates EOSB continuously for all active employees based on their start date, basic salary, and current service period. When an employee exits, HR sees the exact gratuity liability before the exit process begins.
The UAE gratuity calculator above handles one employee at a time. ArcHR handles every employee in your company — continuously updating the EOSB liability as salary and service time change. Your payroll team sees the exact settlement cost before it becomes a surprise.
