UAE End of Service Gratuity Calculator
UAE EOSG = 21 days basic salary per year for first 5 years + 30 days per year for years 6+, on final basic salary. Capped at 2 years total salary.
| Final basic monthly salary | — |
| Daily basic salary (monthly / 30) | — |
| Years of service | — |
| First 5 years entitlement (21 days/year) | — |
| Years 6+ entitlement (30 days/year) | — |
| Total days entitled | — |
| Cap: 2 years' worth of basic salary | — |
| Final EOSG payable | — |
UAE End of Service Gratuity (EOSG) is a statutory lump-sum payment to employees on termination, governed by Federal Decree-Law No. 33 of 2021 (effective February 2, 2022). Calculation: 21 days of basic salary per year for the first 5 years of service, plus 30 days per year for years 6 and beyond. Capped at 2 years' worth of basic salary. Critical: only the BASIC component of salary counts — allowances like housing, transport, and education are excluded.
What Counts as Basic Salary
Basic salary is the component specified in your employment contract before any allowances. Excluded from EOSG calculation: housing allowance (often 25-40% of total package in UAE), transport allowance, education allowance, mobile phone allowance, end-of-year bonus, commissions. Total package of AED 25,000/month with AED 15,000 basic + AED 10,000 allowances → EOSG uses only the AED 15,000 basic. This often makes EOSG 30-50% smaller than employees expect based on their total package.
Federal Decree-Law 33/2021 Changes
The 2022 reform eliminated the distinction between limited and unlimited contracts — all employment contracts converted to fixed-term (max 3 years renewable). Pre-2022 limited contracts that resigned before completion lost portions of EOSG; this provision is gone. New rules: employees who resign get full EOSG regardless of contract type. The 21/30 day per year formula and 2-year cap remain unchanged. Pre-Feb 2022 service balances are grandfathered with prior rules.
EOSG Forfeiture (Article 44)
EOSG may be forfeited under Article 44 of Federal Decree-Law 33/2021 if termination is for serious misconduct: assault, theft from employer, intentional damage to property, criminal conviction, false document submission, absconding from job. Employers must follow due process (investigation, written warning, employee response) before invoking Article 44. Wrongful invocation can result in MOHRE penalties. Source: MOHRE (Ministry of Human Resources and Emiratisation).
Last updated May 2026. Sources: MOHRE UAE.