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Hospitality Sector ยท UAE Labour Law ยท Updated 2026

Hospitality Gratuity Calculator UAE
EOSB for Hotel, F&B & Guest Services Staff

Service charges and tips are not included in your gratuity. Use the basic salary from your contract.

โœ“ Service charges excluded from EOSBโœ“ Tips not counted toward gratuityโœ“ Accommodation benefit excluded

๐Ÿจ Hospitality Sector Gratuity Calculator

Federal Decree-Law No. 33 of 2021, Article 51

โœ“ FREE TOOL

Resigned, terminated or contract ended? The same formula applies once you complete 1 year of continuous service.

๐Ÿ‡ฆ๐Ÿ‡ช

Pre-filled with a typical salary.
Adjust and click Calculate.

๐Ÿ“Š Gratuity accrual over years of service
Calculate your gratuity above to see the year-by-year accrual chart
Critical for hospitality workers: Service charges, tips, gratuities collected from guests, and accommodation provided by the hotel are all excluded from your UAE end-of-service gratuity calculation. Only your fixed monthly basic salary in your employment contract counts.
SPLIT SHIFTS AND SEASONAL WORK

Split shifts, seasonal contracts and continuous service

Hotel and restaurant work often runs in split shifts. Article 18 says a worker may not work more than 5 consecutive hours without a break of at least one hour in total, and that establishments working in shifts arrange hours and breaks according to the job category. Overtime under Article 19 is at least 25% on top of the basic wage, and workers on shifts are excluded from the 50% night clause for 10 pm to 4 am. None of that overtime counts towards gratuity.

Gratuity needs one year of continuous service, and the law defines continuous service as uninterrupted service with the same employer or its legal successor. If a seasonal contract is renewed without a break, service continues. If there is a gap between seasons, ask HR in writing how the gap is treated, and keep every contract and visa page. Days of unpaid absence do not count towards the service period (Article 51(4)).

Gratuity calculation examples, hospitality roles

F&B STAFF
Basic salary: AED 3,000/month
Service: 4 years
21 days ร— 4 yrs = 84 days
Gratuity: AED 8,400
FRONT DESK AGENT
Basic salary: AED 4,500/month
Service: 5 years
21 days ร— 5 yrs = 105 days
Gratuity: AED 15,750
SUPERVISOR
Basic salary: AED 6,000/month
Service: 7 years
Yr 1 to 5: 105 days
Yr 6 to 7: 60 days
Gratuity: AED 33,000
F&B MANAGER
Basic salary: AED 10,000/month
Service: 8 years
Yr 1 to 5: 105 days
Yr 6 to 8: 90 days
Gratuity: AED 65,000
SERVICE CHARGES & TIPS

Are service charges included in UAE gratuity?

No. Under Federal Decree-Law No. 33 of 2021, gratuity is calculated on the basic wage, which the law defines as the wage in the contract excluding allowances and benefits in kind. The law does not mention tips or service charges, but they are not a basic wage stipulated in your contract, so they are left out:

โœ— Excluded from gratuity

  • Service charges, even if distributed monthly as part of pay
  • Tips from guests, regardless of how they are paid out
  • Accommodation, hotel-provided room or staff housing
  • Meal benefits, staff cafeteria or food allowance
  • Performance bonuses, seasonal or annual incentive pay
  • Overtime, extra hours worked beyond contract

โœ“ Included in gratuity

  • Basic monthly salary, fixed amount in employment contract
  • This is typically the only component for hospitality workers
Your payslip may show multiple components. Your gratuity is calculated only on the line labelled "Basic Salary" or "Basic Pay" in your contract.
CONTRACT TYPES

Common contract arrangements in UAE hospitality

Every UAE employment contract is fixed term since February 2022 (Article 68), and hospitality contracts are often renewed. Packages usually split pay into basic salary and allowances, and the split decides your gratuity. Smaller venues may state only one total figure, so check how your contract names basic salary.

COMMON STRUCTURE

Hotel group employee

Basic salary plus housing and transport allowances. Accommodation may be provided instead of a housing allowance. A service charge may be paid separately as a top up.

IMPORTANT NOTE

All-inclusive contracts

Some hospitality contracts list one total "gross salary" figure. Ask HR in writing which part is basic salary, because that part decides your gratuity amount.

Calculate your exact gratuity

Use the full calculator for date-based precision, unpaid leave deductions, and a year-by-year accrual chart.

Open Full Gratuity Calculator โ†’