Mohre End Of Service Gratuity Calculator

MOHRE Gratuity Formula:

\[ Gratuity = Basic Salary \times \left( \frac{21}{30} \times Years\ of\ Service_{\leq5} + \frac{30}{30} \times Years\ of\ Service_{>5} \right) \]

Gratuity (AED):

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1. What is MOHRE End of Service Gratuity?

The MOHRE (Ministry of Human Resources and Emiratisation) End of Service Gratuity is a legal entitlement for employees in the UAE private sector upon termination of employment. It is calculated based on the employee's basic salary and years of service according to UAE labor law.

2. How Does the Calculator Work?

The calculator uses the MOHRE gratuity formula:

\[ Gratuity = Basic Salary \times \left( \frac{21}{30} \times Years\ of\ Service_{\leq5} + \frac{30}{30} \times Years\ of\ Service_{>5} \right) \]

Where:

\( Basic Salary \) — Monthly basic salary in AED
\( Years\ of\ Service_{\leq5} \) — Years of service up to 5 years
\( Years\ of\ Service_{>5} \) — Years of service beyond 5 years
\( \frac{21}{30} \) — Daily factor for first 5 years of service
\( \frac{30}{30} \) — Daily factor for service beyond 5 years

Explanation: The formula calculates gratuity based on 21 days' basic salary for each year of the first 5 years, and 30 days' basic salary for each additional year beyond 5 years.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with UAE labor law and proper financial planning for end-of-service benefits.

4. Using the Calculator

Tips: Enter monthly basic salary in AED and total years of service. The calculator will automatically apply the correct daily factors based on your years of service duration.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between basic salary and total salary?
A: Basic salary is the fixed component of your salary, excluding allowances and bonuses. Only basic salary is used for gratuity calculation under MOHRE rules.

Q2: How are partial years calculated?
A: Partial years are calculated proportionally. For example, 3 years and 6 months would be calculated as 3.5 years in the formula.

Q3: Is gratuity payable for service less than 1 year?
A: No, employees are not entitled to gratuity if they have completed less than 1 year of continuous service.

Q4: What happens if employment is terminated for cause?
A: Gratuity entitlement may be reduced or forfeited depending on the circumstances of termination as per UAE labor law.

Q5: Are there different rules for limited vs unlimited contracts?
A: Yes, gratuity calculations may vary slightly between limited and unlimited contracts, particularly regarding early termination.