Compliance

Free End of Service Calculator

Get an instant, policy-ready estimate without spreadsheets.

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Calculator Inputs

What This Calculator Does

Estimate end-of-service benefits quickly for exit planning and settlement preparation.

Use this for HR pre-checks before final payroll approval.

Inputs Explained

  • Basic Salary: Numeric value: use your policy-compliant value for accurate output.
  • Years of Service: Numeric value: use your policy-compliant value for accurate output.

Formula

UAE Estimate: Daily Wage x Service Reward Days (commonly 21-day basis for first service band).

Example Calculation

  • Basic salary: 1
  • Years of service: 1
  • Service Reward Days 21.00
  • Daily Wage Basis $0.03
  • Estimated End of Service Benefit $0.70

Frequently Asked Questions

Is resignation vs termination handled?

This tool provides a simple estimate and does not include all legal scenarios.

Should I use gross salary?

Most frameworks use basic salary; verify with your legal context.

Can I share this with employees?

Yes, as an estimate with policy disclaimer.

Related Tools

End of Service Calculator: What You're Entitled to When You Leave

When an employment relationship ends, the total amount owed to the employee is rarely just the gratuity figure. A proper end of service calculator accounts for every component of the final benefit — ensuring employees receive their full legal entitlement and employers stay compliant with applicable labor law.

What Is an End-of-Service Benefit?

An end-of-service benefit (EOSB) is the total financial package owed to an employee upon leaving a company. It is distinct from the final paycheck. While the final paycheck covers salary earned up to the last working day, the EOSB covers statutory obligations accumulated over the entire period of employment.

Using a service calculator to determine the exact length of service is the essential first step — since every component of the EOSB is calculated against either the service duration or the daily/monthly salary rate.

Components of an End-of-Service Benefit

Gratuity

The core statutory lump sum calculated on basic salary and years of service. The largest component of EOSB in most GCC and South Asian jurisdictions.

Notice Pay

If the employee or employer did not work the full notice period, the monetary equivalent of the outstanding notice days must be included in final settlement.

Accrued Annual Leave

Unused annual leave days are converted to a daily salary rate and paid out. Typically calculated as: (Annual leave days ÷ 365) × annual salary × unused days.

Air Ticket / Repatriation

In GCC countries, expatriate employees are often contractually or legally entitled to a return air ticket to their home country upon end of service.

Total EOSB = Gratuity + Unpaid Notice Pay + Accrued Leave Pay + Other Contractual Benefits

Example: AED 18,000 gratuity + AED 3,000 notice pay + AED 2,400 accrued leave = AED 23,400 EOSB

Resignation vs. Termination: Key Differences

Factor Resignation Termination (Without Cause)
Gratuity entitlementMay be reduced (Saudi <5 yrs)Full entitlement
Notice period obligationEmployee must serve noticeEmployer pays in lieu
Accrued leave payoutYes — always payableYes — always payable
Additional compensationGenerally noneMay apply (arbitrary dismissal)

Final Settlement Timelines

Labor law in most jurisdictions mandates that the final settlement be processed within a defined window after the last working day. Delays can result in penalty interest or fines payable to the employee.

Pro tip: Run the end-of-service calculator as soon as a resignation or termination notice is received — this gives HR enough time to verify each component, obtain finance approvals, and meet statutory payment deadlines.
Calculate your full end-of-service entitlement

Enter service dates, basic salary, and unused leave above for a complete EOSB breakdown.

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Frequently Asked Questions

Is end-of-service benefit the same as gratuity?

Not exactly. Gratuity is the primary statutory component of the end-of-service benefit, but EOSB is the broader total. EOSB includes gratuity plus unpaid notice pay, accrued leave, repatriation costs, and any other contractually defined amounts owed on exit.

What happens to EOSB if an employee is terminated for cause?

In most jurisdictions, an employee terminated for gross misconduct (such as fraud or gross negligence) forfeits some or all gratuity entitlement. The specific forfeit conditions are defined in the applicable labor law — for example, Article 44 of UAE Labor Law and Article 80 of Saudi Labor Law list specific grounds for partial or full gratuity forfeiture.

Can an employer offset debts against the EOSB?

Employers can generally deduct specific items — such as outstanding salary advances, company property not returned, or unreimbursed expenses — from the final settlement, provided there is a written agreement. Most labor laws limit the maximum deductible amount per pay cycle or in total.

How is accrued leave calculated for final settlement?

Accrued leave is calculated as: Daily Salary × Number of Unused Leave Days. Daily salary is typically the monthly salary divided by 30 (calendar days) or 26 (working days), depending on the jurisdiction. The UAE uses 30 calendar days as the divisor for leave encashment calculations.

Disclaimer: This calculator is for informational purposes only and does not constitute legal or financial advice. We do not guarantee the accuracy or completeness of the results. Please consult a qualified professional for advice specific to your situation.