EOSB Calculation in UAE: A Step-by-Step Guide (With Free Calculator)

Gratuity disputes are one of the most common — and most avoidable — sources of UAE labour complaints. Get the calculation wrong, and you're not just fixing a spreadsheet; you may be facing a formal MOHRE complaint. Here's how EOSB actually works.

Who qualifies

Employees who complete at least one year of continuous service are entitled to End of Service Benefits (EOSB), calculated based on their basic salary — not total salary including allowances.

The basic formula

● 1–5 years of service: 21 days' basic salary for each year.

● Beyond 5 years: 30 days' basic salary for each additional year.

● Total EOSB is capped at two years' total salary.

● Under the current law, employees summarily dismissed retain their EOSB entitlement, and there is no reduction for resignation.

Where employers get it wrong

● Calculating on gross salary instead of basic salary.

● Missing partial-year service in the calculation.

● Not settling the full amount within 14 days of termination — a legal requirement, not a guideline.

● Applying old reduction rules for resignation that no longer apply under current law.

Try it yourself

Rather than run this by hand, use our free EOSB Calculator on evolvedhr.org

https://www.evolvedhr.org/p/gratuity-calculator-in-uae.html

— enter salary and service length and get an accurate figure in under a minute. If a number looks off, or you're managing a termination and want it handled correctly the first time, book a free consultation before you process it.