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UAE End of Service Gratuity Formula:
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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 length of service according to UAE labor law.
The calculator uses the standard UAE gratuity formula:
Where:
Explanation: This formula calculates the end-of-service benefit for employees who have completed at least one year of continuous service under UAE labor law.
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.
Tips: Enter basic salary in AED and total service years in years. Both values must be positive numbers. The calculator will compute the gratuity amount according to standard UAE labor law provisions.
Q1: Who is eligible for end-of-service gratuity?
A: Employees who complete one or more years of continuous service are eligible for gratuity under UAE labor law.
Q2: Is the gratuity calculation the same for all service periods?
A: The calculation may vary based on the length of service and the reason for termination (resignation vs. termination).
Q3: What is included in basic salary for gratuity calculation?
A: Basic salary typically excludes allowances, bonuses, and other benefits unless specified in the employment contract.
Q4: Are there different calculation methods for different service periods?
A: Yes, different calculation methods apply for service periods under 5 years and over 5 years according to UAE labor law.
Q5: When is gratuity payable?
A: Gratuity is payable upon termination of employment, regardless of whether the employee resigns or is terminated by the employer.