Guide to End-of-Service Benefits
Navigating the transition between jobs requires a clear understanding of your financial rights. In the United Arab Emirates, the UAE Gratuity Calculator is an essential tool for any professional looking to estimate their final settlement. Gratuity is a statutory requirement for employees who have completed at least one year of continuous service.
How Benefits are Determined
According to the UAE Labor Law, your end-of-service entitlement is strictly linked to your tenure and your last drawn basic salary. It is important to note that allowances such as housing, transportation, or utilities are typically excluded from this calculation.
- Years 1 through 5: Calculated at 21 days of basic salary per year.
- Year 6 and Beyond: Calculated at 30 days of basic salary per year.
- Continuous Service: Unpaid leaves are deducted from the total period.
If you have a basic salary of AED 10,000 and served for 6 years:
• Daily Rate: AED 333.33
• First 5 Years: AED 34,999.65
• 6th Year: AED 9,999.90
• Estimated Total: AED 44,999.55
Finally, remember that the total gratuity payment cannot exceed the equivalent of two years’ basic salary. Employers are legally permitted to deduct any outstanding debts from the final amount.
UAE Gratuity Calculator
Enter your details to estimate your payout.
