Gratuity Calculator for UAE

For Typing and visa related queries you may contact the following typing center


Business Consulancy | Business setup | Document Followup | PRO Service | Typing Service

For more details : www.synergytyping.com

Call +971506601090

Frequently Asked Questions

Frequently Asked Questions about gratuity and end of service calulations and law's

  • An employee who has spent one year or more in continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service and the gratuity shall be calculated as follows:


    • If an employee has served for less than 1 year, he is not entitled to any gratuity pay.
    • If an employee has served for more than 1 year but less than 5 years, he is entitled to full gratuity pay based on 21 days' salary for each year of work.
    • If an employee has served more than 5 years, he is entitled to full gratuity of 30 days' salary for each year of work following the first five years.
    • In all cases, the total gratuity shall not exceed the wage of two years.
  • Under unlimited Contract 

    In the event where the employer terminates an unlimited contract, calculation will be as follows:

    • If an employee has served for less than 1 year, he is not entitled to any gratuity pay.
    • If an employee has served more than 1 year but less than 5 years, he is entitled to 21 calendar days' basic salary for each year of the first five years of work.
    • If an employee has served more than 5 years, he is entitled to 30 calendar days' basic salary for each additional year, provided the entire compensation does not exceed two years' pay.

    In the event where the employee under an unlimited contract resigns, calculation will be as follows:

    • If an employee resigns before completing 1 year of service, he is not entitled to any gratuity pay.
    • If an employee has served between 1 and 3 years, he is entitled to one third (1/3) of 21 days' basic salary as gratuity pay.
    • If an employee has served between 3 and 5 years, he is entitled to two-thirds (2/3) of 21 days' basic salary as gratuity pay.
    • If an employee has served more than 5 years, he is entitled to full 21 days' basic salary as gratuity pay. 
  • The basis amount used to calculate is the employee’s last drawn basic salary. Any amounts due to the employer may be deducted from the gratuity pay by the employer.

  • The criteria of calculating the gratuity accrued to an employee is based on a set number of days for each year of service.

    Accrual: gratuity accrues at the following rate.

    • 21 days per year for the first five years
    • 30 days per year from sixth year onwards.
  • The provision of gratuity pay in the UAE is only applicable to expatriate workers. Workers who are UAE nationals are precluded from these provisions. This is because UAE Nationals are eligible for mandatory National pension plans. Expatriate workers do not qualify for UAE pension.

  • The amount of gratuity payable to an employee during final settlement cannot exceed the employee’s current total two-year salary.

Other Links

Follow the links here for additional information and tools.

MOHRE

Ministry of Human Resources & Emiratisation

U.AE

The United Arab Emirates Government portal

MINISTRY OF INTERIOR

Ministry of interiors

Emirates ID / Visa

Federal Authority For Identity, Citizenship, Customs & Port Security

UAE PASS

Your secure national digital identity in the UAE

EMIRATES POST

Emirates Post



Download Offline Gratuity calculator


Download from play store

Playstore