1. What Is UAE End-Of-Service Gratuity?

End-of-service gratuity is a financial benefit provided to employees in Abu Dhabi and across the UAE upon termination of employment. It serves as a reward for the employee's service and is calculated based on the final basic salary and length of service.

2. How Does The Calculator Work?

The calculator uses the standard gratuity formula:

Where:

• \( Basic\ Salary \) — Employee's final basic salary in AED
• \( Service\ Days \) — Total number of days worked
• \( 30 \) — Standard divisor representing days in a month

Explanation: This formula calculates the daily rate by dividing the basic salary by 30, then multiplies by the total service days to determine the final gratuity amount.

3. Importance Of Gratuity Calculation

Details: Accurate gratuity calculation is essential for both employers and employees to ensure fair compensation upon employment termination, compliance with UAE labor laws, and proper financial planning.

4. Using The Calculator

Tips: Enter the basic salary in AED and the total service days. Ensure both values are positive numbers (salary > 0, service days between 1-36500).

5. Frequently Asked Questions (FAQ)

Q1: Who Is Eligible For End-Of-Service Gratuity?
A: Employees who have completed at least one year of continuous service are generally eligible for end-of-service gratuity under UAE labor law.

Q2: How Is Service Period Calculated?
A: Service period is calculated from the employment start date to the termination date, including all completed days of service.

Q3: What Is Included In Basic Salary?
A: Basic salary typically excludes allowances such as housing, transportation, and other benefits. Only the fundamental salary component is used for gratuity calculation.

Q4: Are There Different Calculation Methods?
A: Yes, gratuity calculation may vary based on employment duration (less than 5 years vs. more than 5 years) and the reason for termination (resignation vs. termination).

Q5: When Should Gratuity Be Paid?
A: Employers are required to pay end-of-service benefits within 14 days from the employment termination date according to UAE labor regulations.