What is EOSB (gratuity) in the UAE?

EOSB (End-of-Service Benefit, also called gratuity) is a legal end-of-service payment owed to eligible employees when their employment ends. It is a lump-sum benefit that generally increases with years of continuous service and is calculated using the employee's basic salary (not allowances).

How is gratuity calculated in UAE?

Under UAE Federal Decree-Law No. 33 of 2021, gratuity is calculated based on basic salary: 21 days of basic salary for each year of the first 5 years, and 30 days of basic salary for each additional year. The total gratuity cannot exceed 2 years' worth of salary (24 months).

Is gratuity calculated on basic salary or total salary in UAE?

Basic salary only. Allowances such as housing, transportation, or other benefits are not included in the gratuity calculation as per UAE law.

What is the maximum gratuity limit in UAE?

Total EOSB is capped at two years' worth of basic salary (24 months), regardless of how long you have worked for the company.

Do I get gratuity if I resign in UAE?

Yes, under the new UAE labor law (Federal Decree-Law No. 33 of 2021), employees who resign are entitled to full gratuity if they have completed at least one year of service. The previous reductions for resignation have been removed.

When must EOSB be paid after the job ends?

Employers must settle end-of-service entitlements within 14 days of the employee's last working day, as per the law's end-of-contract settlement requirement.

Does unpaid leave affect gratuity?

Yes. Days of absence without pay are not included when calculating the service period for EOSB.

Do part-time workers get EOSB in UAE?

Yes - EOSB applies to employees on other work patterns, commonly applied on a pro-rata basis relative to hours worked compared to a full-time schedule.

Is gratuity taxed in the UAE?

The UAE does not levy personal income tax on salaries, so gratuity is generally not taxed in the UAE. Individual home-country tax rules may differ.

Does this gratuity calculation apply to DIFC or ADGM?

DIFC has implemented an alternative savings-style scheme (DEWS) rather than traditional gratuity. ADGM has its own employment regulations. Mainland private-sector employment follows federal law (Decree-Law No. 33 of 2021), and many free zones broadly align with federal rules.

UAE Gratuity Calculator

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This free tool helps you calculate your end-of-service benefits under UAE Federal Decree-Law No. 33 of 2021.

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