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UAE Dubai End-of-Service Gratuity:
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The UAE Dubai 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 last salary and years of service, providing financial compensation upon termination of employment.
The calculator uses the standard UAE Dubai gratuity formula:
Where:
Explanation: This formula calculates the end-of-service benefit based on 21 days' salary for each year of service, converted to monthly equivalent.
Details: Accurate gratuity calculation ensures employees receive their rightful end-of-service benefits according to UAE labor law. It helps both employers and employees understand financial obligations and entitlements upon employment termination.
Tips: Enter your last monthly salary in AED and total years of service. Partial years should be entered as decimals (e.g., 3.5 years). All values must be valid positive numbers.
Q1: Who is eligible for end-of-service gratuity?
A: Employees who complete one or more years of continuous service are eligible for gratuity payments upon termination of employment.
Q2: Are there different calculation methods for different service periods?
A: Yes, for service less than 5 years, gratuity is 21 days per year. For 5+ years, it's 30 days per year for additional years.
Q3: What is included in the "last salary" calculation?
A: Last salary typically includes basic salary and any regular allowances, but excludes bonuses, overtime, and other variable payments.
Q4: How are partial years calculated?
A: Partial years are calculated proportionally. For example, 6 months service would count as 0.5 years in the calculation.
Q5: Is gratuity taxable in the UAE?
A: No, end-of-service gratuity is tax-free in the United Arab Emirates according to local labor laws.