EOSB Calculator UAE 2026

EOSB Calculator UAE 2026 — Calculate Your End of Service Benefits Under UAE Labour Law

Use this free EOSB calculator UAE to compute your end of service benefits under the latest UAE Labour Law (Federal Decree-Law No. 33 of 2021). Whether you call it EOSB, end of service gratuity, or indemnity, this tool calculates the exact amount your employer must pay based on your basic salary, years of service, and termination type. Updated for 2026 — the UAE EOSB calculator covers every scenario: resignation, termination, mutual agreement, and contract expiry. Built by RevisionTown — free, private, no signup required.

Updated for 2026: This EOSB UAE calculator reflects Federal Decree-Law No. 33/2021 as amended by FDL 14/2022, FDL 20/2023, and FDL 9/2024. The distinction between limited and unlimited contracts was abolished in February 2022 — all contracts are now fixed-term. Gratuity rules under EOSB UAE labor law are unified.

EOSB Calculator End of Service Benefits UAE Labour Law 2026 Gratuity Calculation Resignation & Termination Free Zone & Mainland

Calculate Your EOSB

Enter your employment details to compute your end of service benefits under UAE Labour Law

Basic salary (AED/month)

Your basic monthly salary excluding all allowances.

Gross salary (AED/month)

Total monthly salary including housing, transport, and other allowances.

Date of joining

Last working day

Reason for end of service

How the employment relationship ended — affects EOSB entitlement.

Contract type

Part-time EOSB is calculated proportionally.

Unpaid leave days (total)

Unpaid leave is excluded from the service period for EOSB.

Weekly work hours (part-time)

Standard full-time is 48 hours. Enter actual hours for part-time.

Legal basis: This EOSB calculator UAE applies Articles 51–53 of Federal Decree-Law No. 33 of 2021 (UAE Labour Law). Gratuity is calculated on basic salary only. The total EOSB is capped at two years' basic salary. Employees must complete a minimum of one year of continuous service to be eligible.

Your EOSB Results

Enter your employment details and click calculate to see your end of service benefits breakdown.

EOSB (First 5 years)AED 0.00

EOSB (Beyond 5 years)AED 0.00

Total EOSB (Gross)AED 0.00

Gratuity cap check—

Daily basic wageAED 0.00

Service period0y 0m 0d

Service in years0.00

Net EOSB payableAED 0.00

Detailed EOSB Breakdown

Enter your details and click calculate to see the complete EOSB breakdown.

This EOSB calculator UAE provides estimates based on UAE Labour Law (Federal Decree-Law No. 33 of 2021). Actual EOSB may vary based on free zone regulations, specific contract terms, and company policies. For disputes, contact MOHRE or file a complaint through the Tasheel system. Source: Ministry of Human Resources and Emiratisation (MOHRE).

What Is EOSB and Why Every UAE Employee Must Know About It

EOSB stands for End of Service Benefits — and it is the single most important financial entitlement for expatriate workers in the United Arab Emirates. Often called end of service gratuity, service indemnity, or simply gratuity, EOSB is a lump-sum payment that employers are legally required to pay employees when their employment ends. This applies to every termination scenario: resignation, dismissal, mutual agreement, contract expiry, or even the death of the employee. The legal framework governing EOSB UAE labor law is established in Articles 51 through 53 of Federal Decree-Law No. 33 of 2021 — the unified UAE Labour Law that replaced the older Federal Law No. 8 of 1980.

For expatriate workers — who comprise approximately 90% of the private-sector workforce in the UAE — the EOSB functions as a retirement benefit. Unlike UAE nationals who receive government pensions through the General Pension and Social Security Authority (GPSSA), expatriates do not participate in any state pension scheme. Instead, the EOSB serves as the accumulated retirement savings that an employee earns throughout their career in the UAE. This makes the EOSB calculator UAE one of the most important financial planning tools for anyone working in the Emirates.

The significance of understanding your EOSB cannot be overstated. According to the Ministry of Human Resources and Emiratisation (MOHRE), gratuity-related disputes consistently rank among the top five categories of labour complaints in the UAE. Many employees, particularly those who have worked for multiple employers or have complex employment histories, are unsure of the exact amount they are owed. Our UAE EOSB calculator eliminates this uncertainty by applying the precise legal formulas established by the UAE Labour Law, giving you an accurate estimate that you can use to verify your employer's calculation or plan your finances before leaving your job.

How EOSB Is Calculated Under UAE Labour Law — Complete Legal Guide

The Two-Tier Gratuity System

The UAE Labour Law uses a two-tier system to calculate EOSB. The rates differ based on whether the employee has served for up to five years or beyond five years. This structure rewards long-tenured employees with a higher gratuity rate for their loyalty and sustained contribution to the organization.

Tier 1 — First five years of service: The employee receives 21 calendar days' basic salary for each completed year of service. For partial years, the gratuity is calculated proportionally (pro-rata). This means if you worked for 3 years and 7 months, you receive 21 days × 3 years for the complete years, plus a proportional amount for the 7 months.

Tier 2 — Service beyond five years: For every year of service after the first five years, the employee receives 30 calendar days' basic salary per year. Again, partial years are calculated pro-rata. This elevated rate recognizes the value of experienced, long-serving employees.

Important: The total EOSB is capped at the equivalent of two years' (24 months') basic salary, regardless of how long the employee has worked. This cap applies to the gross gratuity amount before any deductions.

Basic Salary vs. Gross Salary — A Critical Distinction

One of the most common sources of confusion — and disputes — in EOSB UAE labor law is the distinction between basic salary and gross salary. The law is clear: EOSB is calculated exclusively on the basic salary. This is the base pay specified in your employment contract, excluding all allowances such as:

Housing allowance — typically 25–40% of the total package
Transport allowance — usually a fixed monthly amount
Utility allowance — covering electricity, water, and internet
Food or meal allowance
Mobile phone allowance
Education allowance for dependents
Air ticket allowance — annual or biennial flights
Commission and bonuses — unless specified as part of basic salary

If your employment contract shows a single "all-inclusive" salary without a specific basic salary breakdown, UAE courts have historically interpreted the entire salary as the basic salary for gratuity purposes. This is an important point that many employees and employers overlook. Always check your contract and pay slips to identify your basic salary component clearly.

EOSB Formulas — Mathematical Notation

Here are the exact formulas this EOSB calculator UAE uses, rendered in proper mathematical notation:

The daily basic wage formula:

$$\text{Daily Basic Wage} = \frac{\text{Monthly Basic Salary}}{30}$$

The EOSB for the first 5 years of service:

$$\text{EOSB}_{1\text{-}5} = \text{Daily Basic Wage} \times 21 \times \min(\text{Years of Service},\; 5)$$

The EOSB for years beyond 5:

$$\text{EOSB}_{5+} = \text{Daily Basic Wage} \times 30 \times \max(\text{Years of Service} - 5,\; 0)$$

The total EOSB (subject to the two-year cap):

$$\text{Total EOSB} = \min\!\Big(\text{EOSB}_{1\text{-}5} + \text{EOSB}_{5+},\; \text{Monthly Basic Salary} \times 24\Big)$$

For part-time employees, the EOSB is adjusted proportionally:

$$\text{Part-Time EOSB} = \text{Total EOSB} \times \frac{\text{Actual Weekly Hours}}{48}$$

The pro-rata calculation for partial years:

$$\text{Partial Year EOSB} = \text{Daily Rate} \times \frac{\text{Remaining Days}}{365}$$

Worked Example — EOSB Calculation Step by Step

Let us walk through a complete example. Suppose an employee has a basic salary of AED 10,000 per month and has worked for 8 years and 4 months.

Step 1: Calculate the daily basic wage:

$$\text{Daily Wage} = \frac{10{,}000}{30} = 333.33 \text{ AED}$$

Step 2: Calculate EOSB for the first 5 years:

$$\text{EOSB}_{1\text{-}5} = 333.33 \times 21 \times 5 = 35{,}000 \text{ AED}$$

Step 3: Calculate EOSB for years beyond 5 (3 years and 4 months = 3.333 years):

$$\text{EOSB}_{5+} = 333.33 \times 30 \times 3.333 = 33{,}333 \text{ AED}$$

Step 4: Calculate the total and check against the cap:

$$\text{Total EOSB} = 35{,}000 + 33{,}333 = 68{,}333 \text{ AED}$$

$$\text{Cap} = 10{,}000 \times 24 = 240{,}000 \text{ AED}$$

$$68{,}333 < 240{,}000 \implies \text{No cap applied. Net EOSB = AED 68,333}$$

EOSB Eligibility — Who Qualifies Under UAE Labour Law

Minimum Service Requirement

Under EOSB UAE labor law, an employee must complete a minimum of one year of continuous service with the same employer to be eligible for end of service benefits. Service periods of less than one year do not qualify for EOSB. However, once the one-year threshold is crossed, the gratuity is calculated for the entire service period — not just the period after the first year.

Unpaid leave days are excluded from the service calculation. If you took 30 days of unpaid leave during your employment, those 30 days reduce your effective service period. Our EOSB calculator UAE accounts for this deduction automatically.

EOSB for Different Termination Scenarios

Under the 2021 UAE Labour Law, all employees who complete one year of service receive full EOSB regardless of the reason for termination. This is a significant change from the previous law (Federal Law No. 8 of 1980), which reduced gratuity for employees who resigned with less than five years of service. The current law eliminates this distinction — whether you resign, are terminated, reach contract expiry, or agree to mutual separation, you receive your full calculated EOSB.

Exception — Article 44 Dismissal: An employee is not entitled to EOSB if they are dismissed under Article 44 of Federal Decree-Law No. 33/2021 for gross misconduct. Article 44 grounds include: assault, fraud, forgery, drug/alcohol intoxication at work, sexual harassment, unauthorized disclosure of trade secrets, and absence without valid reason for more than 20 intermittent days (or 7 consecutive days) in a single year.

EOSB Reference Table — Quick Lookup by Salary and Service

End of Service Benefits Reference Table (AED)

This table shows estimated EOSB amounts for common basic salary and service duration combinations under UAE Labour Law. Use this table for quick reference, or use the EOSB calculator UAE above for precise results with your exact dates.

Basic Salary (AED)	1 Year	3 Years	5 Years	7 Years	10 Years	15 Years	20 Years
3,000	2,100	6,300	10,500	16,500	25,500	40,500	55,500
5,000	3,500	10,500	17,500	27,500	42,500	67,500	92,500
8,000	5,600	16,800	28,000	44,000	68,000	108,000	148,000
10,000	7,000	21,000	35,000	55,000	85,000	135,000	185,000
15,000	10,500	31,500	52,500	82,500	127,500	202,500	277,500
20,000	14,000	42,000	70,000	110,000	170,000	270,000	370,000
25,000	17,500	52,500	87,500	137,500	212,500	337,500	462,500
30,000	21,000	63,000	105,000	165,000	255,000	405,000	555,000

Note: Amounts for 20-year and 15-year service (at higher salaries) may exceed the two-year cap. The actual EOSB payable = min(calculated amount, basic salary x 24). Use the EOSB calculator above for cap-adjusted results.

Understanding EOSB in UAE Free Zones

Employees working in UAE free zones — such as DIFC (Dubai International Financial Centre), ADGM (Abu Dhabi Global Market), JAFZA (Jebel Ali Free Zone), DAFZA (Dubai Airport Free Zone), DMCC (Dubai Multi Commodities Centre), and others — may be subject to different EOSB rules depending on the free zone's own employment regulations. DIFC and ADGM, in particular, have their own employment laws (DIFC Employment Law No. 2 of 2019 and ADGM Employment Regulations 2019) with gratuity formulas that may differ from the mainland UAE Labour Law.

For DIFC employees, the EOSB calculation uses a slightly different formula: 21 days' basic wage for each year of the first five years, and 30 days' basic wage for each additional year — the same rates as the mainland, but DIFC has its own specific provisions regarding pro-rata calculations and the cap. ADGM employees follow similar but not identical rules. Most other free zones (JAFZA, DAFZA, DMCC, RAKEZ, etc.) follow the standard mainland UAE Labour Law for EOSB calculations — meaning the formulas in our UAE EOSB calculator apply directly.

If you work in a free zone, we recommend checking your specific free zone authority's employment regulations to confirm which EOSB rules apply. For mainland employees and most free zone employees, this EOSB calculator UAE provides accurate calculations based on the standard federal law.

EOSB and the UAE Savings Scheme (Alternative End of Service System)

In 2023, the UAE introduced the Savings and Investment Scheme as a voluntary alternative to the traditional EOSB system. Under this scheme (governed by Cabinet Decision No. 96 of 2023), employers can opt to contribute a percentage of the employee's basic salary into an approved investment fund managed by licensed fund managers. The key features of this alternative system include:

Monthly contributions: Employers contribute 5.83% of basic salary (for first 5 years) or 8.33% (beyond 5 years) monthly into the fund
Investment returns: Employees benefit from investment returns on the accumulated contributions
Portability: The savings account can potentially move with the employee between employers
Voluntary participation: Both employer and employee must agree to participate

As of 2026, this scheme remains voluntary — the traditional EOSB system continues to be the default. If your employer has not enrolled in the savings scheme, or if you have not been offered the option, the standard EOSB calculation applies, and this EOSB calculator UAE gives you the correct figure.

How to Use This EOSB Calculator — Step-by-Step Guide

Enter your basic salary: This is your base monthly pay as stated in your employment contract, excluding all allowances (housing, transport, etc.). If your contract shows only an "all-inclusive" salary, enter the full amount.
Enter your gross salary: This is your total monthly compensation including all allowances. While EOSB is calculated on basic salary only, the gross salary is displayed for reference and comparison.
Select your joining date: The date you started working for your current employer. This is usually the date specified in your employment contract or labor card.
Select your last working day: The final date of your employment. If you have not yet left, enter your expected last day.
Choose the termination type: Select whether you resigned, were terminated, reached contract expiry, or agreed to mutual separation. Under the 2021 law, this does not affect the EOSB amount (all scenarios receive full gratuity), but it is recorded for your reference.
Enter unpaid leave days: If you took any unpaid leave during your employment, enter the total number of days. These are excluded from the service period.
Click "Calculate EOSB": The calculator will instantly show your EOSB broken down by tier, the cap check, daily wage, and net payable amount.

Common Mistakes in EOSB Calculations

Based on the most frequently filed labour complaints with MOHRE, here are the most common errors in EOSB calculations that employees and employers should be aware of:

Using gross salary instead of basic salary: This is the #1 mistake. EOSB is calculated on basic salary only — not the total package.
Not applying the two-year cap: For long-serving, high-salaried employees, the total EOSB can exceed the cap of 24 months' basic salary. Many employers fail to apply this cap, while others incorrectly over-apply it.
Excluding partial years: Partial years (months and days) must be calculated pro-rata. An employee who worked 5 years and 11 months should not receive the same EOSB as someone who worked exactly 5 years.
Not deducting unpaid leave: Periods of unpaid leave must be subtracted from the total service period before calculating EOSB.
Applying old law rules to new contracts: The 2021 law eliminated the reduction in EOSB for employees who resign with less than 5 years of service. Some employers still incorrectly apply the old 1/3 and 2/3 reduction rules.
Ignoring the one-year minimum: Employees with less than one year of service are not entitled to EOSB at all.

EOSB Payment Timeline and Legal Rights

Under Article 53 of the UAE Labour Law, the employer must pay all end of service entitlements — including EOSB — within 14 days of the employment contract's termination date. If the employer fails to meet this deadline, the employee has the right to:

File a complaint with MOHRE: Through the Tasheel service centers, the MOHRE website, or the MOHRE smartphone app
Request mediation: MOHRE will attempt to mediate between the employee and employer
Escalate to the labour court: If mediation fails, the case is referred to the UAE labour courts
Claim late payment penalties: Courts may award additional compensation for delayed EOSB payments

Employees should keep copies of their employment contracts, pay slips, and any communication regarding their termination. These documents are essential evidence if a dispute arises over the EOSB amount. Our EOSB calculator UAE printout can also serve as supporting documentation showing the expected calculation under UAE law.

EOSB for Domestic Workers, Part-Time Workers, and Special Categories

Domestic workers (maids, nannies, drivers, cooks, gardeners, etc.) are covered under Federal Decree-Law No. 9 of 2022 on Domestic Workers, not the standard UAE Labour Law. However, domestic workers are also entitled to end of service gratuity after completing one year of service. The calculation is similar — based on basic salary and years of service — but the regulatory framework and dispute resolution mechanisms differ.

Part-time workers are entitled to EOSB calculated proportionally based on their actual working hours relative to a full-time schedule (48 hours per week). Our UAE EOSB calculator supports part-time calculations — simply select "Part-time" as the contract type and enter your actual weekly hours.

UAE nationals in the private sector are covered by the GPSSA pension scheme rather than the EOSB system. However, UAE nationals in certain free zones may still receive EOSB depending on the applicable regulations.

Frequently Asked Questions About EOSB in the UAE

What does EOSB stand for?

EOSB stands for End of Service Benefits. It is the lump-sum gratuity payment that UAE employers are legally required to pay to employees upon termination of the employment contract, as mandated by Federal Decree-Law No. 33 of 2021 (UAE Labour Law). The terms EOSB, end of service gratuity, and service indemnity are used interchangeably.

How is EOSB calculated in the UAE?

EOSB in the UAE is calculated using a two-tier system based on the employee's basic salary: 21 days' basic salary per year for the first 5 years of service, and 30 days' basic salary per year for each year beyond 5. The total is capped at 2 years' (24 months') basic salary. The daily wage is calculated by dividing the monthly basic salary by 30.

Is EOSB calculated on basic salary or gross salary?

EOSB is calculated exclusively on basic salary, not gross salary. Allowances such as housing, transport, utilities, and other benefits are excluded from the calculation. However, if the employment contract does not specify a basic salary separately, courts may treat the entire salary as basic salary for EOSB purposes.

What is the minimum service required for EOSB in UAE?

An employee must complete a minimum of one year of continuous service with the same employer to be eligible for EOSB. Employees with less than one year of service are not entitled to end of service benefits. Unpaid leave days are excluded from the service period calculation.

Do I get EOSB if I resign?

Yes. Under the 2021 UAE Labour Law, employees who resign receive full EOSB as long as they have completed at least one year of service. The previous law (Federal Law No. 8 of 1980) reduced gratuity for resignations with less than 5 years of service, but this reduction has been abolished under the current law.

When must my employer pay EOSB?

Under Article 53 of Federal Decree-Law No. 33/2021, the employer must pay all end of service entitlements — including EOSB — within 14 days of the contract termination date. If the employer delays payment, the employee can file a complaint with MOHRE through the Tasheel system or the MOHRE app.

Is there a maximum cap on EOSB?

Yes. The total EOSB is capped at two years' (24 months') basic salary, regardless of the length of service. For example, if your basic salary is AED 10,000, the maximum EOSB you can receive is AED 240,000, even if the formula calculation yields a higher amount.

Does EOSB apply to free zone employees?

Most free zone employees (JAFZA, DAFZA, DMCC, RAKEZ, etc.) are covered by the standard UAE Labour Law and receive EOSB accordingly. However, DIFC and ADGM have their own employment laws with similar but not identical gratuity provisions. Check your specific free zone authority's regulations for confirmation.

Can my employer deduct amounts from my EOSB?

Yes, but only for lawful deductions. These may include outstanding loans or salary advances, damages to company property (with documented evidence), or any amounts owed by the employee under a court order. The employer cannot arbitrarily deduct amounts without legal basis.

Is EOSB taxable in the UAE?

No. The UAE does not impose personal income tax, so EOSB is not taxable within the UAE. However, employees should check the tax laws of their home country, as some countries may require residents to declare and pay tax on foreign-source income including EOSB received from UAE employment.

Related UAE Labour Law Calculators

If you found this EOSB calculator UAE helpful, you may also want to use these related tools from RevisionTown:

Final Settlement Calculator UAE 2026 — calculates your complete full and final settlement including EOSB, leave encashment, notice period pay, unpaid salary, and repatriation air ticket
Income Tax Calculator — for employees moving to countries with income tax after leaving the UAE
Commission Calculator — for sales professionals calculating commission-inclusive packages

For official information about EOSB and UAE Labour Law, refer to the Ministry of Human Resources and Emiratisation (MOHRE) website or visit a Tasheel service center for in-person assistance.

Disclaimer: This EOSB calculator is provided for informational and educational purposes by RevisionTown. It is not a substitute for professional legal advice. While we strive for accuracy based on the current UAE Labour Law, actual EOSB amounts may vary based on specific contract terms, free zone regulations, company policies, and court interpretations. Always consult with a qualified employment lawyer or MOHRE for definitive guidance on your specific situation. Last updated: March 2026.