Calculate your end of service gratuity instantly. Updated for UAE Labour Law 2026 (MOHRE) and Saudi Labour Law. Free, accurate, no signup.
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Our UAE and Saudi Arabia gratuity calculator is the most comprehensive free end of service benefits tool available online — covering both the UAE (under Federal Decree-Law No. 33 of 2021) and the Kingdom of Saudi Arabia (under Articles 84, 85, and 87 of the Saudi Labour Law). Whether you are an expat worker planning your exit from a UAE company, an HR professional calculating final settlements, or an employee in Saudi Arabia checking your entitlements before resigning — our free gratuity calculator gives you an instant, accurate estimate based on the latest MOHRE and HRSD-approved formulas.
End of service gratuity — officially known as End of Service Benefits (EOSB) — is a mandatory lump-sum payment that every private sector employer in the UAE and Saudi Arabia is legally required to pay eligible employees when their employment ends. It is one of the most important financial rights of expat workers in the Gulf, yet one of the most frequently miscalculated. Our gratuity calculator eliminates the confusion and gives you a clear, transparent result in seconds.
⚡ Key fact: The UAE and Saudi Arabia together host over 15 million expatriate workers — the majority of whom are entitled to end of service gratuity when they leave their jobs. Understanding your gratuity entitlement is one of the most important financial decisions you will make as an expat worker in the Gulf.
UAE gratuity is calculated under Article 51 of Federal Decree-Law No. 33 of 2021 (effective February 2022), which significantly updated the previous Labour Law. The formula is based on your basic salary only — not your gross salary, housing allowance, transport allowance, or any other benefits. Here is the exact UAE gratuity formula:
Daily Wage = Monthly Basic Salary ÷ 30
Example: If your basic salary is AED 8,000 per month, your daily wage is AED 8,000 ÷ 30 = AED 266.67
Total UAE gratuity cannot exceed 2 years of basic salary regardless of total service length.
Employee with 8 years of service and AED 8,000 basic salary:
📋 Important 2022 UAE Law Change: Under the old law, employees who resigned before 5 years received a reduced gratuity. The new Federal Decree-Law No. 33 of 2021 abolished resignation penalties — all employees who complete at least 1 year of service are now entitled to full gratuity regardless of whether they resign or are terminated.
Saudi Arabia gratuity (End of Service Benefits) is governed by Articles 84, 85, and 87 of the Saudi Labour Law. Unlike the UAE, Saudi Arabia does not use a daily wage calculation — instead it uses a monthly salary fraction. The KSA formula is also more complex because resignation penalties still apply under Saudi law.
Saudi Labour Law includes a unique provision protecting female employees. A female employee is entitled to full gratuity if she resigns:
| Factor | 🇦🇪 UAE | 🇸🇦 Saudi Arabia (KSA) |
|---|---|---|
| Governing Law | Federal Decree-Law No. 33/2021 | Saudi Labour Law Arts. 84, 85, 87 |
| First 5 years rate | 21 days per year | ½ month per year |
| After 5 years rate | 30 days per year | 1 full month per year |
| Based on | Basic salary only | Basic salary only |
| Maximum cap | 2 years total salary | No cap |
| Minimum service | 1 year | 1 year (termination) / 2 years (resignation) |
| Resignation penalty | None (abolished 2022) | Yes — 1/3, 2/3, or full |
| Female provision | No special provision | Full gratuity on marriage/childbirth |
| Payment deadline | 14 days after last working day | 14 days after last working day |
| Free zone exception | DIFC/ADGM have different rules | Standard law applies nationwide |
Under UAE Labour Law, you are entitled to gratuity if:
In Saudi Arabia, eligibility depends on how your employment ends:
⚠️ Important: Gratuity in both UAE and KSA is calculated on your basic salary only — not your total package. Housing allowance, transport allowance, food allowance, and other benefits are excluded from the gratuity calculation. Make sure you use your correct basic salary, not your total monthly package.
Employees working in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are subject to different employment laws than mainland UAE employees. Both DIFC and ADGM operate under common law frameworks and have their own employment regulations.
DIFC introduced the DIFC Employee Workplace Savings (DEWS) scheme in February 2020 — a mandatory provident fund that replaces traditional gratuity for DIFC employees. Instead of receiving a lump-sum gratuity at the end of service, DIFC employees accumulate monthly savings contributions (minimum 5.83% of basic salary for first 5 years, 8.33% thereafter) throughout their employment.
If you work in a DIFC or ADGM company, consult the DIFC official employment guidelines or your HR department for the specific rules that apply to you.
Your gratuity is just one part of your total final settlement. When you leave a job in the UAE or KSA, your employer is required to pay:
The UAE continues to refine its labour market regulations under the Federal Decree-Law No. 33 of 2021 framework. Key recent developments include strengthened enforcement of the 14-day payment deadline, with increased penalties for employers who delay end of service payments. The Ministry of Human Resources and Emiratisation (MOHRE) has expanded its digital complaint filing system, making it easier for workers to report non-payment of gratuity without needing to visit offices in person.
Saudi Arabia’s Vision 2030 labour market reforms continue to evolve. The Ministry of Human Resources and Social Development (HRSD) has introduced enhanced wage protection systems and strengthened enforcement of end of service benefit payments. Saudi Arabia’s GOSI (General Organization for Social Insurance) system covers Saudi nationals through pension contributions rather than traditional gratuity.
UAE gratuity in 2026 is calculated under Federal Decree-Law No. 33 of 2021. The formula is: Daily Wage (Basic Salary ÷ 30) × number of days earned. You earn 21 days per year for the first 5 years and 30 days per year after that. The total cannot exceed 2 years of basic salary. Our UAE gratuity calculator applies this formula automatically when you enter your details.
Yes — under the updated UAE Labour Law (Federal Decree-Law No. 33 of 2021, effective 2022), all employees who complete at least 1 year of service are entitled to full gratuity regardless of whether they resign or are terminated. The old resignation penalties that applied under the previous unlimited contract system have been abolished.
The minimum service period to be eligible for UAE gratuity is 1 full year of continuous service. If you leave before completing 1 year, you are not entitled to any gratuity. If you complete exactly 1 year, you are entitled to 21 days of basic salary. Our gratuity calculator will show zero if you enter less than 1 year of service.
Saudi Arabia gratuity is calculated as: ½ month salary per year for the first 5 years + 1 full month salary per year for each year beyond 5. There is no maximum cap in KSA. Resignation penalties apply — if you resign with less than 2 years you get nothing, 2-5 years gets 1/3, 5-10 years gets 2/3, and 10+ years gets full gratuity. Our KSA gratuity calculator handles all these rules automatically.
In both UAE and Saudi Arabia, gratuity is calculated on your basic salary only — not your total package. Housing allowance, transport allowance, food allowance, performance bonuses, and any other allowances are excluded. Make sure you use the basic salary figure from your contract, not your total monthly earnings.
In both UAE and KSA, employers are legally required to pay all end of service entitlements — including gratuity — within 14 days of your last working day. If your employer fails to pay within this deadline, you can file a complaint with MOHRE (UAE) or HRSD (KSA). Employers who delay face significant financial penalties.
If your UAE employer refuses to pay gratuity, file a complaint online at the MOHRE portal (mohre.gov.ae) or call 600 590 000. MOHRE will investigate and can order the employer to pay plus penalties. In Saudi Arabia, file a complaint via the HRSD portal or their app. Both countries take non-payment of gratuity very seriously and workers have strong legal protections.
No — employees of companies registered in the Dubai International Financial Centre (DIFC) are subject to DIFC Employment Law, not UAE mainland Labour Law. DIFC introduced the DEWS (DIFC Employee Workplace Savings) scheme in 2020, which replaced traditional gratuity with a mandatory monthly provident fund contribution. ADGM in Abu Dhabi has a similar scheme. If you work for a DIFC or ADGM company, consult your HR department for the specific rules.
The gratuity amounts set by UAE and KSA Labour Law are the legal minimum — your employer cannot pay less than the statutory amount. However, your employment contract or company policy may provide for a higher gratuity than the legal minimum, in which case you would be entitled to the higher amount. Always check your employment contract alongside the legal minimum. Our gratuity calculator shows the legal minimum entitlement.
Neither UAE nor Saudi Arabia imposes personal income tax on residents, so gratuity payments are not subject to income tax in the country where you earned them. However, if you return to a country that taxes worldwide income (such as India, the UK, or the USA), you may need to declare your gratuity as income and pay tax according to your home country’s rules. Consult a tax professional in your home country for specific advice.