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 standard UAE gratuity formula:

Where:

• \( Basic Salary \) — Employee's basic salary in AED
• \( Years \) — Total years of continuous service
• \( \frac{21}{30} \) — Standard gratuity calculation factor

Explanation: This formula applies to employees who have completed one or more years of service. The calculation is based on 21 days' basic salary for each year of service.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with UAE labor laws and proper financial planning for end-of-service benefits.

4. Using the Calculator

Tips: Enter basic salary in AED (excluding allowances), years of service in decimal format (e.g., 2.5 years). All values must be valid (salary > 0, years > 0).

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for end of service gratuity?
A: Employees who complete one or more years of continuous service are eligible for gratuity payment upon termination of employment.

Q2: What is included in basic salary for gratuity calculation?
A: Basic salary excludes housing allowance, transportation allowance, and other benefits. Only the basic salary component is used for calculation.

Q3: How is partial year service calculated?
A: For service periods less than one year, gratuity is calculated proportionally based on the actual months served.

Q4: Are there different calculation methods for different service periods?
A: Yes, different formulas apply for service less than 1 year, 1-5 years, and more than 5 years of service.

Q5: When is gratuity payable?
A: Gratuity is payable upon termination of employment contract, whether by resignation, termination, or contract completion.