The UAE Labour Law provides that all employees who have worked for at least one year are entitled to an end of service gratuity upon termination of their employment. The amount of gratuity is calculated based on the employee’s basic salary and the number of years they have worked for the employer.

End of Service Calculator – UAE

The calculation of gratuity is as follows:

  • For the first five years of service, the gratuity is calculated at a rate of 21 days’ basic salary for each year of service.
  • For any additional years of service, the gratuity is calculated at a rate of 30 days’ basic salary for each year of service.

The basic salary is the employee’s regular wage, excluding any overtime pay, bonuses, or allowances. Unpaid leave days are not counted as part of the service period.

The gratuity is payable in full upon termination of employment, except in the following cases:

  • If the employee is terminated for misconduct, they may be entitled to a reduced gratuity or no gratuity at all.
  • If the employee resigns, they may be entitled to a prorated gratuity, depending on the length of their service.

The employer is responsible for paying the gratuity to the employee. If the employer fails to pay the gratuity, the employee may file a complaint with the Ministry of Human Resources and Emiratisation.

Here are some tips for calculating your end of service gratuity:

  • Keep a record of your salary slips and employment contracts. This will help you to determine your basic salary and the number of years you have worked for your employer.
  • If you are unsure of how to calculate your gratuity, you can use an online gratuity calculator. There are many gratuity calculators available online, and most of them are free to use.
  • If you have any questions about your gratuity, you should speak to your employer or a lawyer.

Here are some additional things to keep in mind about end of service gratuity in the UAE:

  • The UAE Labour Law also provides for other benefits that may be payable to employees upon termination of employment, such as notice pay and severance pay.
  • The amount of gratuity that an employee is entitled to may be affected by any collective bargaining agreements that apply to their employment.
  • The UAE Labour Law is subject to change, so it is important to check with the latest updates before making any decisions about your employment.