End of service benefits, often called EOSB, are the payments an employer owes an employee when a contract ends in the UAE. The largest part is gratuity. It also covers unpaid wages, untaken annual leave and any repatriation the contract promises. It all falls due within 14 days of the last working day.
Federal Decree-Law No. 33 of 2021 sets the rules. Gratuity is the biggest line. It is 21 days basic pay per year for the first five years, then 30 days per year, capped at two years of pay.
On top of gratuity you add unpaid salary, pay for untaken leave, and notice pay if notice was not served. Allowances sit outside the gratuity sum. Most free zones mirror the federal rule, though DIFC runs the DEWS savings plan instead.
Keep a live EOSB accrual for every employee. Base it on real basic salary, not the headline package. Under-provisioning is a common finding in our HR audits.
Settle within 14 days. Late final pay invites MoHRE complaints and penalties. If you plan to reshape pay, model the gratuity impact first through compensation and benefits advice.
Last updated: July 2026 | Reviewed by Tuscan Consulting, Dubai