Home
Back
MOHRE Gratuity Formula:
| From: | To: |
MOHRE (Ministry of Human Resources and Emiratisation) gratuity is the end-of-service benefit payable to employees in the UAE private sector upon termination of employment. It is calculated based on the employee's basic salary and years of service.
The calculator uses the MOHRE gratuity formula:
Where:
Explanation: This formula calculates the end-of-service gratuity according to UAE labor law for employees who have completed one or more years of continuous service.
Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with UAE labor law and proper financial planning for end-of-service benefits.
Tips: Enter basic salary in AED (excluding allowances and bonuses) and total years of service. Both values must be positive numbers.
Q1: Who is eligible for MOHRE gratuity?
A: Employees who have completed one or more years of continuous service with the same employer are eligible for end-of-service gratuity.
Q2: What is included in basic salary for gratuity calculation?
A: Only the basic salary component is used for gratuity calculation. Housing, transportation, and other allowances are excluded.
Q3: Are there different calculation methods for different service periods?
A: Yes, for service less than 1 year, no gratuity is payable. For 1-5 years, 21 days per year. For more than 5 years, 30 days per year for additional service.
Q4: What happens if employment is terminated before one year?
A: No gratuity is payable if employment is terminated before completing one year of continuous service.
Q5: Is gratuity calculation different for limited and unlimited contracts?
A: The basic calculation method is similar, but specific conditions may vary based on contract type and termination circumstances.