1. What is UAE End of Service Benefit?

The UAE End of Service Benefit is a legal entitlement for employees who complete one or more years of continuous service. It includes gratuity payment and compensation for unused annual leave days as per UAE Labor Law.

2. How Does the Calculator Work?

The calculator uses the UAE Labor Law formula:

Where:

• Gratuity — Calculated based on years of service and basic salary
• Unused Leave Pay — Daily wage multiplied by unused leave days
• Daily Wage — Basic salary divided by 30 days

Gratuity Calculation Rules:

• Less than 1 year: No gratuity
• 1-5 years: 21 days basic salary per year
• 5+ years: 30 days basic salary per year
• Voluntary resignation before 5 years: Reduced gratuity

3. Importance of End of Service Calculation

Details: Accurate end of service calculation ensures employees receive their legal entitlements and helps employers comply with UAE labor regulations, avoiding legal disputes and penalties.

4. Using the Calculator

Tips: Enter basic salary in AED, years of service (can include decimals for months), unused leave days, and select termination type. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in basic salary for gratuity calculation?
A: Basic salary excludes allowances, commissions, and bonuses. Only the fixed basic salary component is used for gratuity calculation.

Q2: How is daily wage calculated?
A: Daily wage = Basic salary ÷ 30 days (as per UAE Labor Law standard).

Q3: What happens if service is less than one year?
A: No gratuity is payable, but unused leave pay must still be compensated.

Q4: Are there differences between voluntary resignation and termination?
A: Yes, voluntary resignation before completing 5 years results in reduced gratuity entitlement.

Q5: Is this calculator applicable to all employment sectors in UAE?
A: This follows standard UAE Labor Law. Free zones and specific sectors may have variations - consult your employment contract.