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, providing financial compensation upon termination of employment.

2. How Does the Calculator Work?

The calculator uses the standard UAE gratuity formula:

Where:

• \( Basic Salary \) — Monthly basic salary in AED
• \( \frac{21}{30} \) — Standard gratuity rate (21 days per 30 days of service)
• \( Years of Service \) — Total years worked for the employer

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

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their legal entitlements and helps employers comply with UAE labor law requirements for end of service benefits.

4. Using the Calculator

Tips: Enter your monthly basic salary in AED and total years of service. Ensure both values are positive numbers for accurate calculation.

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: What happens if service is less than one year?
A: No gratuity is payable for service less than one year under UAE labor law.

Q3: Is the calculation different for different service periods?
A: For the first 5 years, 21 days basic salary per year; after 5 years, 30 days basic salary per year for subsequent years.

Q4: What salary component is used for calculation?
A: Only basic salary is used for gratuity calculation, excluding allowances, bonuses, and other benefits.

Q5: Are there any exceptions to this calculation?
A: Different rules may apply for termination due to gross misconduct or if the employee resigns before completing specific service periods.