The UAE End of Service Benefit (gratuity) is one of the most significant financial payouts you'll receive as an expat. After years of service, it can amount to several months of salary. The 2021 UAE Labour Law updated the rules significantly — here's exactly how it works.
UAE EOSB Formula (Post-2021 Law)
| Years of Service | Gratuity Rate |
|---|---|
| First 5 years | 21 working days of basic salary per year |
| After 5 years | 30 working days of basic salary per year |
| Maximum cap | 2 years total basic salary |
For first 5 years: Basic ÷ 30 × 21 × Years
For years beyond 5: Basic ÷ 30 × (21×5 + 30×additional years)
Example: 8 Years at AED 10,000 Basic
First 5 years: (10,000÷30) × 21 × 5 = AED 35,000
Next 3 years: (10,000÷30) × 30 × 3 = AED 30,000
Total EOSB = AED 65,000 ≈ ₹14,62,500
Key Changes in UAE Labour Law 2021
- Resignation now receives the same full gratuity as termination (major improvement)
- All employment contracts are now fixed-term (maximum 3 years, renewable)
- New leave categories: parental leave, study leave, bereavement leave
- Anti-discrimination provisions strengthened
- Remote work frameworks legalized
Transferring UAE Gratuity to India
Transfer your EOSB to India via Wise or Al Ansari Exchange for best AED to INR rates. Credit to your NRE account for tax-free receipt in India. EOSB received by NRIs from foreign employers is generally not taxable in India for the year received (check residency status with a CA). Use our UAE Gratuity Calculator for your exact payout.