Emirates End-of-Service Benefits & Gratuity Calculator

What are end-of-service benefits?

End-of-Service Benefits, commonly called gratuity, is a lump-sum payment Emirates employers owe to employees on termination after at least 1 year of continuous service. It's defined by the United Arab Emirates Federal Decree-Law 33 of 2021 (which replaced Law 8 of 1980).

How is the gratuity calculated for mainland Emirates employees?

For the first 5 years of service: 21 days of basic salary per year. For each year of service after 5: 30 days of basic salary per year. The total is capped at 2 years' basic salary (so the cap kicks in around year 26). The calculation is on BASIC salary only — housing, transport, and other allowances are excluded by law.

How does the Dubai International Financial Centre gratuity work? What is the workplace savings scheme?

Since February 2020, Dubai International Financial Centre employees are on the workplace savings scheme (the Dubai International Financial Centre Employee Workplace Savings plan). The employer contributes 5.83% of monthly basic salary for the first 5 years of service, then 8.33% thereafter, into a regulated trust. On termination, the employee receives the accumulated savings pot — contributions plus whatever investment returns the chosen fund earned. So the Dubai International Financial Centre payout depends on fund performance, unlike the formula-based mainland gratuity.

Is the Abu Dhabi Global Market different from mainland?

Abu Dhabi Global Market Employment Regulations 2024 currently mirror the United Arab Emirates Federal formula for most unlimited-term cases. Some Abu Dhabi Global Market-specific provisions exist for fixed-term contracts and partial-year accrual. Some Abu Dhabi Global Market employers also operate voluntary funded schemes similar to the Dubai International Financial Centre workplace savings scheme — check your contract.

What if I resign vs. get terminated?

Under Decree-Law 33/2021, both resignation and termination after 1+ year of service entitle you to full gratuity. The old distinction (under Law 8 of 1980) where resigning within the first 5 years reduced your gratuity was removed in February 2022. Pre-Feb-2022 service may have legacy treatment.

What about dismissal for cause?

Termination for gross misconduct (Decree-Law 33/2021 Art. 44 — fraud, intoxication on duty, etc.) typically forfeits gratuity. This calculator does NOT model that case — it assumes a normal end of service. For dismissal-for-cause situations, consult an Emirates-qualified employment lawyer.

Why does this calculator use basic salary, not total salary?

United Arab Emirates law is unambiguous: end-of-service gratuity is computed on basic salary only. Allowances (housing, transport, schooling, telephone, etc.) are excluded by statute. In practice, employers and employees sometimes disagree about which line items count as "basic" — check your employment contract and salary slip carefully. The number from this calculator is the legal floor based on the basic-salary figure you provided.

How is this different from a tax calculator?

End-of-service gratuity is not a tax — it's an employment entitlement under United Arab Emirates law. The United Arab Emirates has no personal income tax. Gratuity payments are typically remitted to the employee in cash on termination (mainland) or as a workplace-savings-pot withdrawal (Dubai International Financial Centre). There may be tax implications in your country of tax residency if you take the payment to another jurisdiction.