End Of Benefits Calculator In Uae

UAE Gratuity Formula:

\[ Gratuity = (Salary / 30) \times 21 \times \text{Service Years (first 5)} + (Salary / 30) \times 30 \times \text{Service Years (after 5)} \]

Gratuity Amount:

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1. What is UAE End of Service Benefits?

The UAE End of Service Benefits (Gratuity) is a lump sum payment made by employers to employees who complete at least one year of service. It's calculated based on the employee's basic salary and duration of employment.

2. How Gratuity is Calculated?

The calculator uses the UAE gratuity formula:

\[ Gratuity = (Salary / 30) \times 21 \times \text{Service Years (first 5)} + (Salary / 30) \times 30 \times \text{Service Years (after 5)} \]

Where:

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

Explanation: The calculation differs for the first 5 years (21 days per year) and subsequent years (30 days per year).

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their rightful end-of-service benefits as per UAE labor law.

4. Using the Calculator

Tips: Enter your basic monthly salary in AED and total years of service (can include fractions like 3.5 years). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is gratuity calculated on basic salary or total salary?
A: Gratuity is calculated on the basic salary excluding allowances, bonuses, or commissions.

Q2: What if employment is less than 1 year?
A: No gratuity is payable if employment is less than 1 year.

Q3: How is partial year calculated?
A: Partial years are calculated proportionally (e.g., 3.5 years counts as 3 full years plus 6 months).

Q4: Are there different rules for different employment types?
A: Yes, limited contract employees have slightly different calculations. This calculator covers unlimited contracts.

Q5: What about employees terminated for cause?
A: Employees terminated for gross misconduct may forfeit gratuity rights.