GRATUITY CALCULATIONS FOR UAE | End-Of-Service Benefit

As per the UAE Labour law, all employees who have finished a full term of their employment contract are entitled to receive Gratuity or end-of-service benefit.

The total gratuity payable depends on the following factors:

  • Type of Contract
  • Total number of years served in the organization
  • Total number of years served in the organization
  • Reason for termination of contract
  • Basic salary

Type of Contracts

There are two type of contracts in the UAE:

  1. Limited or Fixed Term
  2. Unlimited Contract

Limited or Fixed Contract

This means the employee agrees to stay with the company for the set date and number of years. Resigning before the end of this period can result in a labour ban, loss of labour rights or payment of compensation to the employer.

Unlimited Contract:

There is no limit on the period for which the employee has to serve the organization. There is just a requirement of one to three months of notice period.

Limited Contract – Gratuity Pay Calculator (UAE)

Duration of Service

Less Than On Year Of Service

If you leave work before you complete one year of service, you are not entitled to any gratuity pay or final settlement.

1 To 5 Years Of Service

The employee will receive full gratuity based on 21 days of service period.

5 Or More Years Of Service

Employees are entitled with full gratuity pay based on 30 days salary for every year of work.

Unlimited Contract – Gratuity Pay Calculator (UAE)

Duration of Service

Less Than On Year Of Service

If you leave work before you complete one year of service, you are not entitled to any gratuity pay or final settlement.

1 To 3 Years Of Service

The employee is entitled to one third (1/3) of the 21 days of gratuity pay.

3 To 5 Years Of Service

The employee is entitled to two third (2/3) of the 21 days of gratuity pay.

5 Or More Years Of Service

Employee is entitled to full 21 days gratuity pay.