To calculate EOSB in the UAE, divide your basic salary by 30 to get your daily wage, then multiply it by 21 days for each of your first five years of service and by 30 days for each year beyond that. The result is your end-of-service benefit, capped at two years of total basic salary.
To calculate EOSB in the UAE manually or instantly using our Free UAE Gratuity Calculator, divide your contractual basic salary by 30 to get your daily wage, then multiply it by 21 days for each of your first five years of service and by 30 days for each year beyond that. The result is your statutory end-of-service benefit, capped at two years of total basic salary. This guide walks through the statutory formula, worked examples, and the specific employment scenarios that govern your final payout.
Whether you are planning a resignation, negotiating an exit, or just want to know what you are owed, understanding this calculation before you talk to HR puts you in a stronger position.
The 3-Step UAE EOSB Calculation Formula
Step 1: Calculate Your Daily Basic Wage
Under UAE Labour Law, the divisor is always 30 days, regardless of the number of days in any specific calendar month.
Step 2: Apply the 21/30-Day Service Tiers
- Years 1 to 5: Daily Wage × 21 Days × Number of Years
- Year 6 and Beyond: Daily Wage × 30 Days × Number of Additional Years
Step 3: Check the Statutory 2-Year Cap
Article 51 explicitly states that the total end-of-service gratuity cannot exceed 24 months (2 years) of basic salary.
Worked Examples: 4 Years vs 8 Years of Service
Run your own dates and salary through our live calculation engine.