Gratuity Calculator – UAE

Gratuity pay in the UAE is granted exclusively to expatriate employees. UAE nationals are covered under the National Pension Scheme and are therefore not eligible for gratuity.

An employee becomes eligible for gratuity upon completing at least one year of continuous service with the employer. Gratuity is payable upon resignation or termination, provided this minimum period is met.

Yes. The total gratuity amount cannot exceed the equivalent of two years' basic salary. This does not include allowances such as housing, transport, or utilities.

Gratuity is calculated based on the employee's last drawn basic salary and years of service:

1. For the first five years: 21 days of basic salary per year
2. For service beyond five years: 30 days of basic salary per year

An employer may legally withhold gratuity if:

1. The employee was dismissed for gross misconduct
2. The employee has not completed one full year of service
3. The employee fails to present a valid employment contract or work permit
4. The employee caused deliberate damage or loss to the company

Yes. Employers are legally required to pay EOSB in accordance with UAE Labour Law. Failure to comply may result in legal action, fines, and reputational damage. Employees have the right to file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) to claim their entitlements.