1. What is End of Service Gratuity?

End of Service Gratuity is a legal entitlement for employees in Dubai 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 Dubai 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 gratuity amount based on 21 days' basic salary for each year of service, which is the standard calculation for employees who have completed one or more years of service.

3. Importance of Gratuity Calculation

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.

4. Using the Calculator

Tips: Enter your basic monthly salary in AED and total years of service. The calculator will compute your end of service gratuity entitlement according to Dubai labor regulations.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for end of service gratuity?
A: Employees who have completed one or more years of continuous service are eligible for gratuity under UAE labor law.

Q2: Is the calculation different for different service periods?
A: Yes, the calculation varies for service periods under 5 years and over 5 years, with this calculator using the standard formula for general cases.

Q3: What if I worked for less than one year?
A: Employees who work for less than one year are not entitled to gratuity under UAE labor law.

Q4: Are there any deductions from gratuity?
A: Gratuity may be subject to deductions for outstanding loans or advances taken from the employer.

Q5: When is gratuity payable?
A: Gratuity is payable upon termination of employment, regardless of whether the termination is by employer or employee.