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Abu Dhabi Gratuity Formula:
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The Abu Dhabi end-of-service gratuity is a legal entitlement for employees upon termination of employment in Abu Dhabi, UAE. It represents a financial benefit calculated based on the employee's basic salary and years of service.
The calculator uses the Abu Dhabi gratuity formula:
Where:
Explanation: The formula calculates the end-of-service benefit by multiplying the basic salary by the service years adjusted by the statutory factor of 21/30.
Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with UAE labor law and proper financial planning for employment termination.
Tips: Enter basic salary in AED per month and total years of service. All values must be valid (salary > 0, years > 0).
Q1: Who is eligible for end-of-service gratuity in Abu Dhabi?
A: All employees who complete one or more years of continuous service are eligible for end-of-service gratuity under UAE labor law.
Q2: How is the gratuity factor determined?
A: The 21/30 factor is derived from UAE labor law provisions for calculating gratuity based on 21 days' pay for each year of service.
Q3: What is included in basic salary for gratuity calculation?
A: Basic salary typically excludes allowances, bonuses, and other benefits. Only the fixed basic salary component is used for calculation.
Q4: Are there different calculation methods for different service periods?
A: Yes, the calculation may vary for service periods less than 1 year, 1-5 years, and more than 5 years according to UAE labor law.
Q5: Is this calculator applicable to all UAE emirates?
A: While similar, gratuity calculations may have slight variations between different emirates. This calculator follows Abu Dhabi specific regulations.