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:
Limited or Fixed Term
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.