1. What is UAE End of Service Gratuity?

The UAE End of Service Gratuity is a legal entitlement for employees who complete one or more years of continuous service. It is calculated based on the employee's basic salary and years of service according to UAE Labor Law.

2. How Does the Calculator Work?

The calculator uses the UAE gratuity formula:

Where:

• \( Basic \) — Basic monthly salary in AED
• \( Years_{\leq5} \) — Years of service up to 5 years
• \( Years_{>5} \) — Years of service beyond 5 years

Explanation: For the first 5 years of service, employees receive 21 days' basic salary per year. For service beyond 5 years, employees receive 30 days' basic salary per year.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their legal entitlements and helps employers comply with UAE labor regulations. It provides financial security for employees ending their employment.

4. Using the Calculator

Tips: Enter basic monthly salary in AED and total years of service. The calculator automatically applies the correct formula based on service duration.

5. Frequently Asked Questions (FAQ)

Q1: Is gratuity payable for service less than 1 year?
A: No, employees must complete at least one year of continuous service to be eligible for gratuity.

Q2: How is gratuity calculated for partial years?
A: For partial years, gratuity is calculated proportionally based on the number of days worked.

Q3: What happens if employment is terminated before completion of service?
A: Different rules apply for termination scenarios - consult UAE Labor Law for specific cases.

Q4: Is gratuity calculated on basic salary or total salary?
A: Gratuity is calculated on basic salary only, excluding allowances and bonuses.

Q5: Are there different rules for different types of employment contracts?
A: Yes, limited and unlimited contracts have different gratuity calculation rules under UAE law.