Dubai End-of-Service Gratuity Formula:
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Dubai 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.
The calculator uses the standard Dubai gratuity formula:
Where:
Explanation: This formula calculates the end-of-service benefit for employees who have completed at least one year of service under UAE labor law.
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 and years of service. Both values must be positive numbers. The calculator will compute the gratuity amount according to standard Dubai calculation methods.
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 calculation different for different employment periods?
A: Yes, calculation methods may vary for service periods less than 1 year, 1-5 years, and more than 5 years of service.
Q3: What is included in basic salary for gratuity calculation?
A: Basic salary typically excludes allowances, bonuses, and other benefits unless specified in the employment contract.
Q4: Are there any exceptions to gratuity payment?
A: Gratuity may be forfeited in cases of dismissal for gross misconduct as defined by UAE labor law.
Q5: Can gratuity be calculated for partial years?
A: Yes, partial years of service are calculated proportionally based on completed months of service.