BGA · UAE
BGA — Bright Global AccountingBGAAccounting · UAE
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EOSBGratuityIAS 19UAE

How much EOSB (gratuity) your company already owes

UAE companies are required to recognize an end-of-service benefits (EOSB / gratuity) liability in their financial statements. If the liability isn’t tracked in advance, the payout hits cash flow as one lump sum.

What this means for accounting →
One-minute calculationFormula of Art. 51, FDL No. 33 of 2021No email — instant result
Estimate under the general UAE Labour Law regime (FDL 33/2021) for full-time foreign employees. DIFC (DEWS scheme) and ADGM (its own Employment Regulations) have separate rules and are not covered by this calculation.
EOSB Liability CalculatorResult

Up to 5 employee groups. Each row is one averaged profile (headcount, average basic salary, average tenure). The total updates instantly — no form to submit.

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01For Reporting

What this means for accounting

An EOSB liability accrues every month and is carried in the company’s books.

A reserve in your financial statements (IAS 19)

Under IAS 19 gratuity is a defined benefit plan; the obligation is recognised as employees render service.

Cash-flow risk on terminations

A mass layoff, a closed project, or a business sale can trigger a one-off payout of the entire accrued reserve — plan liquidity ahead of time.

Alternative savings scheme

Since 2023 private-sector employers, including those in free zones, may opt into the voluntary alternative savings scheme (Cabinet Resolution No. 96 of 2023); opting in changes the model from accruing a reserve to making regular contributions to an investment fund. DIFC runs its own DEWS scheme.

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This is not an accounting opinion. We’ll help prepare an exact per-employee calculation and a reserve for your reporting.

02FAQ

Questions on the EOSB liability

Answers to the questions we get asked most often about gratuity and how it’s reflected in the books.

Is EOSB calculated on total pay, or just the basic salary?
EOSB is calculated on the basic monthly salary only — excluding housing, transport, and other allowances. That’s the figure listed as basic salary in the employment contract.
The reserve grows every month

Find out the exact liability figure

The estimate on this page is averaged by group. For reporting and payout decisions you need an exact per-employee calculation — we’ll prepare it.

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Reviewed by Elena Stupenkova — CEO of BGA, specializing in accounting and tax for UAE companies.
Page last updated: 24 September 2026.
Disclaimer

The calculation on this page is an estimate of accrued end-of-service benefits (EOSB / gratuity) liability under the general UAE Labour Law regime (Federal Decree-Law No. 33 of 2021, Art. 51) for full-time foreign employees. DIFC (DEWS scheme) and ADGM (its own Employment Regulations) have separate rules and are not covered by this calculation. The result is an estimate and does not constitute an accounting opinion: reflecting the liability in financial statements requires an exact per-employee calculation — a service BGA provides. The content of this page is not individual tax, legal, or audit advice.