1. What is Dubai Trade End of Service Benefits?

The Dubai Trade end of service benefits, or gratuity, is a lump sum payment made to employees upon termination of employment in recognition of their service. It is calculated based on the employee's final salary and length of service.

2. How Gratuity is Calculated

The calculator uses the following formula:

Where:

• \( Salary \) — Basic salary in AED per month
• \( Service Years \) — Total years of service
• 21 — Days multiplier for first 5 years
• 30 — Days multiplier after 5 years

Explanation: The calculation uses different rates for the first 5 years (21 days per year) and subsequent years (30 days per year) of service.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their rightful end-of-service benefits as per UAE labor law. It helps both employers and employees plan financially.

4. Using the Calculator

Tips: Enter your basic monthly salary in AED and total years of service (can include partial years as decimals). The calculator will compute your gratuity entitlement.

5. Frequently Asked Questions (FAQ)

Q1: What salary component is used for gratuity calculation?
A: The calculation is based on basic salary only, excluding allowances and bonuses.

Q2: How are partial years of service calculated?
A: Partial years are calculated proportionally (e.g., 6 months = 0.5 years).

Q3: Is there a minimum service period for gratuity?
A: Yes, employees must complete at least 1 year of service to be eligible.

Q4: What happens if employment is terminated before 1 year?
A: No gratuity is payable for service less than 1 year.

Q5: Are there different rules for different employment types?
A: Yes, there are variations for limited vs unlimited contracts and termination reasons.