1. What is UAE End of Service Gratuity?

UAE End of Service Gratuity is a legal entitlement for employees who complete one or more years of continuous service with an employer in the United Arab Emirates. It serves as a form of severance pay upon termination of employment.

2. How Does the Calculator Work?

The calculator uses the standard UAE gratuity formula:

Where:

• \( Basic Salary \) — Employee's basic salary in AED
• \( Years of Service \) — Total years worked for the employer
• \( \frac{21}{30} \) — Standard gratuity calculation factor

Explanation: This formula calculates the end-of-service benefit based on the employee's basic salary and total years of service, following UAE labor law provisions.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with UAE labor laws and proper financial planning for employment termination.

4. Using the Calculator

Tips: Enter basic salary in AED (excluding allowances and bonuses) and total years of service. All values must be valid (salary > 0, years > 0).

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for end-of-service gratuity?
A: Employees who complete one or more years of continuous service are eligible for gratuity payment upon termination of employment.

Q2: Is the calculation different for different service periods?
A: Yes, the calculation varies based on total years of service and the circumstances of employment termination (resignation vs. termination).

Q3: What is included in basic salary for gratuity calculation?
A: Basic salary typically excludes housing allowance, transportation allowance, and other benefits unless specified in the employment contract.

Q4: Are there different calculation methods for different service durations?
A: Yes, different calculation methods apply for service periods under 5 years and over 5 years, with varying gratuity rates.

Q5: When is gratuity payable?
A: Gratuity is payable upon termination of employment contract, regardless of whether the employee resigns or is terminated by the employer.