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. In practice, owners usually only find out the real figure when an employee resigns — when a reserve suddenly turns into a cash-flow gap instead of a balance-sheet line.
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.
Fill in at least one group to see the calculation.
What this means for accounting
An EOSB liability isn’t a one-off resignation story — it’s a permanent line in the company’s books.
A reserve in your financial statements (IAS 19)
EOSB is a defined benefit obligation to employees under IAS 19. The accrued amount should sit on the balance sheet as a reserve, not be booked only when it’s paid out.
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, not when the event happens.
A new savings-based scheme
DIFC has already moved to a savings-based scheme (DEWS). At the federal level a Voluntary Alternative End-of-Service Benefits Scheme is being discussed — opting in changes the model from accruing a reserve to making regular contributions to an investment fund.
Quick answers on the EOSB liability
Answers to the questions we get asked most often about gratuity and how it’s reflected in the books.
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.
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) and ADGM run their own savings-based schemes 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.