Gratuity Calculator Dubai | Calculate Your UAE End of Service Benefit
Gratuity, also known as EOSB (end of service benefit) is the lump sum payment an employee of the private sector receives when he/she leaves his/her job. Every employee who completes at least one year of continuous service is eligible, and the gratuity is based on basic salary, years of service and UAE Federal Decree-Law No.33 of 2021. Enter your details in the calculator below and get an instant estimate.
Smart Hands is a Dubai based handyman and home maintenance company. Our technicians, AC engineers and painting teams work across the city every day, so questions about gratuity come up often among our own staff and clients. We built this calculator to give a fast, accurate answer without digging through legal text.
How Is Gratuity Calculated in UAE?
UAE gratuity is calculated using basic salary and total years of service. For the first five years of employment, gratuity equals 21 days of basic salary per year. After five years, it increases to 30 days of basic salary per year. Daily wage is calculated by dividing monthly basic salary by 30.
| Years of Service | Gratuity Rate |
| Less than 1 year | Not eligible |
| 1 to 5 years | 21 days basic salary per year |
| Above 5 years | 30 days basic salary per year (for years beyond 5) |
Gratuity Calculation Example
An employee who worked for 6 years in UAE with a basic salary of AED 8000, will receive gratuity as following.
First 5 years: (8,000 ÷ 30) × 21 × 5 = AED 28,000, 6th year: (8,000 ÷ 30) × 30 × 1 = AED 8,000 Total gratuity: AED 36,000
Limited vs Unlimited Contract Gratuity Rules
Limited Contract
Gratuity is paid once the contract ends or is completed, using the same 21 and 30 day formula described above.
Unlimited Contract
The same formula applies, but gratuity becomes due whenever the employee resigns or is terminated, not just at a fixed contract end date.
Resignation vs Termination: Does It Change Your Gratuity?
Under the current labour law, resignation does not reduce gratuity. Employees who resign receive the same calculation as employees who are terminated, as long as they completed one year of service. Older rules that reduced gratuity for early resignation no longer apply under Federal Decree-Law No. 33 of 2021.
Minimum Service and Eligibility Rules
An employee must complete at least one full year of continuous service to qualify for gratuity. Days of unpaid leave are not counted toward this period. Employees who leave before completing one year are not entitled to gratuity.
Maximum Gratuity Cap in UAE
No matter how many years an employee has worked, total gratuity cannot exceed two years of basic salary. This cap applies across private sector, free zone and domestic worker categories.
Gratuity in Dubai Free Zones (JAFZA, DMCC, DIFC and Others)
Most Dubai free zones, including JAFZA and DMCC, follow the same federal gratuity formula. DIFC is an exception since it replaced traditional gratuity with the DIFC Employee Workplace Savings (DEWS) scheme, where employers make monthly contributions instead of paying a lump sum at the end. Always check with your specific free zone authority if your employer is registered there.
Gratuity for Domestic Helpers and Maintenance Staff in Dubai
Domestic workers, including nannies, drivers and household staff, are covered under a separate UAE Domestic Workers Law but follow a similar gratuity principle: one year minimum service, calculated on basic salary. Maintenance staff, technicians and tradespeople employed directly by a company, including teams like ours at Smart Hands, fall under the standard Federal Decree-Law No. 33 of 2021 and receive gratuity the same way as any other private sector employee.
Common Mistakes When Calculating Gratuity
About This Gratuity Calculator Dubai
This calculator is based on UAE Federal Decree-Law No. 33 of 2021 and is meant to give a quick estimate, not a legal or financial ruling. For disputes or official calculations, contact MOHRE or your free zone authority.
Last updated: 2026
Frequently Asked Questions
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