UAE Gratuity Calculator (End of Service Benefits)
Calculate your statutory UAE end-of-service gratuity payout accurately. Fully compliant with UAE Federal Decree-Law No. 33 of 2021 across Dubai, Abu Dhabi, Sharjah, and all Emirates.
Under UAE Federal Decree-Law No. 33 of 2021, full-time private sector employees completing at least 1 year of continuous service receive 21 days of basic salary per year for the first 5 years, and 30 days of basic salary per year for each additional year, capped at 2 years' basic pay.
Interactive UAE Gratuity Calculator
UAE End-of-Service Gratuity Calculator
Updated for UAE Federal Decree-Law No. 33 of 2021
UAE Labor Law Gratuity Rules (Decree-Law No. 33 of 2021)
- Minimum Service
- 1 year of continuous employment
- Calculation Base
- Last drawn Basic Salary only (Daily Wage = Basic ÷ 30)
- First 5 Years
- 21 days' basic wage per year of service
- Beyond 5 Years
- 30 days' basic wage per year of service
- Maximum Cap
- Total cannot exceed 2 years' (24 months) basic wage
- Contract Mode
- Unified Fixed-Term Contracts (Standard across UAE)
Understanding UAE Gratuity Law (Federal Decree-Law No. 33 of 2021)
In the United Arab Emirates, End-of-Service Gratuity (EOSG) is a statutory severance benefit mandated by the Ministry of Human Resources and Emiratisation (MOHRE). The modern labor reform under Federal Decree-Law No. 33 of 2021 unified employment contracts into fixed-term agreements and standardized the calculation for both resignation and termination.
Calculations are based strictly on the Basic Salary specified in the MOHRE electronic contract.
Housing allowance, transport allowances, overtime, telephone allowances, commissions, and annual bonuses are excluded.
Important Payroll Considerations for HR Teams
- ✓Proration: Service periods including partial years and months are computed on a strict pro-rata basis.
- ✓Unpaid Leave: Days of unpaid leave (leave without pay) are excluded when calculating continuous service tenure.
- ✓WPS SIF Integration: Final settlement payments must be executed via MOHRE WPS electronic transfer with appropriate SIF transaction codes.
- ✓DEWS & Alternative Schemes: Employers operating in DIFC or opting into the UAE Voluntary Alternative End-of-Service Scheme make monthly pension fund contributions instead of traditional lump-sum accruals.
How NeuralHR Automates UAE End-of-Service Liabilities
Manual end-of-service spreadsheets frequently create accounting errors, miscalculate salary increments, or miss WPS submission deadlines. NeuralHR.AI integrates directly with UAE payroll rules:
- Live Liability Tracking: Automatically accrues monthly gratuity liabilities on your company balance sheet according to IFRS standards.
- Autonomous Offboarding Workflow: Generates clearance certificates, calculates leave encashment, gratuity, and deductions in one click.
- One-Click WPS SIF Generation: Exports official Salary Information Files for direct bank upload via UAE Central Bank WPS portals.
Frequently asked questions
How is UAE end-of-service gratuity calculated under the 2021 Labor Law?
Under UAE Federal Decree-Law No. 33 of 2021, full-time employees with at least 1 year of continuous service are entitled to 21 days of basic salary for each year of service for the first 5 years, and 30 days of basic salary for each additional year thereafter. The total gratuity cannot exceed 2 years' basic salary.
Are allowances included in the UAE gratuity calculation?
No. Gratuity is calculated strictly on the employee's last drawn Monthly Basic Salary. Housing allowance, transportation, utility allowances, overtime, and annual bonuses are excluded from the statutory gratuity formula.
Is there a difference in gratuity between resignation and termination in UAE?
Under Federal Decree-Law No. 33 of 2021, all private sector employment contracts are fixed-term (typically up to 3 years renewable). If an employee completes at least 1 year of service, they receive the full statutory gratuity calculation regardless of whether they resign or are terminated, provided the notice period is served.
What is the maximum limit (cap) on UAE gratuity?
The statutory maximum cap on end-of-service gratuity under UAE labor law is two years' (24 months) basic salary.
Can an employer deduct money from the gratuity payout?
Yes, employers may legally deduct any outstanding amounts owed by the employee (e.g., unpaid company loans, unreturned equipment, or authorized salary advances) from the final gratuity settlement, subject to MOHRE regulations.
How does NeuralHR automate UAE gratuity and WPS payroll?
NeuralHR automatically calculates accrued end-of-service liabilities in real time on monthly balance sheets, incorporates annual increments into daily wage bases, and generates compliant SIF files for Wage Protection System (WPS) electronic bank transfers upon offboarding.
Eliminate Manual Payroll & Gratuity Calculations
Let NeuralHR's autonomous AI co-workers handle UAE WPS payroll, gratuity accruals, and MOHRE compliance with 100% statutory precision.