1. What is UAE End of Service Gratuity?

The 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 years of service according to UAE labor law.

2. How Does the Calculator Work?

The calculator uses the standard UAE gratuity formula:

Where:

• \( Basic \) — Basic monthly salary in AED
• \( \frac{21}{30} \) — Standard gratuity rate (21 days per 30 days of service)
• \( Years \) — Total years of service

Explanation: This formula calculates the end of service benefit based on 21 days' basic salary for each year of service.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their legal entitlements and helps employers comply with UAE labor laws. It is essential for financial planning and employment contract management.

4. Using the Calculator

Tips: Enter basic monthly salary in AED and years of service. The calculator will compute the total gratuity amount payable at the end of employment.

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 under UAE labor law.

Q2: Is the gratuity calculation different for different service periods?
A: Yes, the calculation varies for service periods 1-5 years and over 5 years, with different rates applied.

Q3: What if employment is terminated before one year?
A: Employees terminated before completing one year of service are not entitled to gratuity under standard UAE labor law.

Q4: Is basic salary the only component considered?
A: Yes, gratuity is calculated based on basic salary only, excluding allowances and other benefits.

Q5: Can employers offer more than the legal minimum?
A: Employers can offer more generous gratuity terms through employment contracts, but cannot offer less than the legal minimum.