End of Service (EOS) Gratuity Calculator
Use this tool to estimate EOS gratuity based on a common UAE-style formula: 21 days per year for the first 5 years, then 30 days per year after that.
What is an EOS calculator?
An EOS calculator (End of Service calculator) helps you estimate the gratuity you may receive when your employment ends. In many Gulf countries, gratuity is based on your basic salary and your length of service. Because the formula can involve multiple tiers, a calculator helps reduce mistakes and gives you a quick planning number.
How this EOS calculator works
This page uses a widely known private-sector-style gratuity model:
- First 5 years: 21 days of basic salary for each year of service.
- After 5 years: 30 days of basic salary for each additional year.
- Daily wage assumption: monthly basic salary ÷ 30.
- Optional cap: total gratuity limited to 24 months of basic salary.
Partial years are included by converting additional months into a fraction of a year. For example, 6 years and 6 months becomes 6.5 years.
Formula used
Let:
- B = monthly basic salary
- Y = total years of service (including months as decimals)
- D = gratuity days
Then:
- If Y < 1, gratuity is estimated as 0.
- If 1 ≤ Y ≤ 5, D = 21 × Y
- If Y > 5, D = (21 × 5) + 30 × (Y - 5)
- Daily basic salary = B ÷ 30
- Gratuity = D × (B ÷ 30)
Example calculation
Suppose your basic salary is AED 12,000 and your service is 7 years and 3 months:
- Total service: 7.25 years
- First 5 years: 21 × 5 = 105 days
- Remaining 2.25 years: 30 × 2.25 = 67.5 days
- Total gratuity days: 172.5 days
- Daily basic salary: 12,000 ÷ 30 = 400
- Estimated gratuity: 172.5 × 400 = AED 69,000
Common mistakes to avoid
1) Using gross salary instead of basic salary
EOS calculations are typically based on basic salary, not full compensation with allowances.
2) Ignoring partial service months
Even a few extra months can increase your gratuity estimate, especially in the 30-day tier after year five.
3) Forgetting legal limits and policy differences
Caps, deductions, contract details, and local law updates can all affect your final amount.
Why this matters for financial planning
EOS is often one of the largest one-time payments an employee receives. Estimating it early helps you:
- Build an emergency runway if you transition jobs
- Plan debt repayments or relocation costs
- Set realistic savings and investment goals
- Negotiate offers with clearer expectations
Quick FAQ
Is this calculator legally binding?
No. It is an estimate for planning purposes only.
Does resignation vs. termination matter?
It can, depending on jurisdiction and legal framework. Always verify current labor regulations where you work.
Can EOS include unpaid leave adjustments?
In some cases, yes. This simplified tool does not automatically model all edge cases.
Final note
A reliable EOS estimate gives you clarity and confidence. Use the calculator above as your baseline, then confirm details with your HR team, employment contract, and official labor resources.