1. What is End of Service Benefits?

End of Service Benefits in the UAE refer to the financial compensation employees receive upon termination of employment, including gratuity, accrued leave pay, and other entitlements as per UAE Labor Law.

2. How Does the Calculator Work?

The calculator uses the UAE Labor Law formula:

Where:

• \( Gratuity \) — End of service gratuity based on years of service and contract type
• \( Leave Pay \) — Payment for unused annual leave days
• \( Other \) — Additional benefits and entitlements

Explanation: The calculation considers contract type, termination reason, years of service, and basic salary to determine accurate gratuity amounts as per UAE regulations.

3. Importance of End of Service Calculation

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

4. Using the Calculator

Tips: Enter basic salary in AED, years of service, select contract type and termination reason, input accrued leave days, and include any other benefits. All values must be valid.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between limited and unlimited contracts?
A: Limited contracts have a fixed end date, while unlimited contracts continue until terminated by either party with notice.

Q2: How is gratuity calculated for limited contracts?
A: 21 days' basic salary for each year of first 5 years, 30 days' basic salary for each subsequent year.

Q3: What happens if I resign before completing 1 year?
A: No gratuity is payable if service is less than 1 year, except for accrued leave pay.

Q4: Are there any exceptions to gratuity calculation?
A: Yes, termination for gross misconduct may result in forfeiture of gratuity rights.

Q5: Is the calculator applicable to all UAE companies?
A: This calculator follows standard UAE Labor Law provisions, but free zones may have different regulations.