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Use the free online UAE gratuity calculator to know your gratuity/end-of-service pay in UAE
To begin with, gratuity in UAE is an end-of-service benefit that a working employee working receives after completing a minimum term of one (1) year in employment. Additionally, it is a one-time monetary benefit that the employee receives as a token of appreciation for the services in the organization. Moreover, one could use this amount of Gratuity in the UAE (United Arab Emirates.) As a result, the gratuity in UAE usually depends on a number of factors, as mentioned below:
Factors that influence gratuity in UAE are mentioned below for evaluation;
Firstly, in the UAE, there are two types of employment contracts – limited contract and unlimited contract. Then depending on the type of contract, the rules for calculating the gratuity in UAE are different.
Secondly, the latest basic wage an employee received is only consideration used to determine the gratuity in the United Arab Emirates. Furthermore, the calculation of gratuities in UAE does not take into account any additional bonuses or allowances, such as housing, transportation, overtime, etc.
Specifically, an employee is only eligible for a gratuity in UAE after completing a minimum of one year of work.
Please note that the this calculator assumes that there is a continuous service between the period of the first and last working day. In other words, the one-year employment period must not include the time period when an employee was absent from work without pay during his/her period of service.
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A UAE Gratuity Calculator is a specialized tool designed to help employees in the United Arab Emirates calculate their end-of-service benefits, also known as gratuity. Gratuity is a mandatory payment by law that employers in the UAE must provide to employees upon the termination of their employment, provided the employee has completed a minimum period of service.Â
The Gratuity Calculator UAE simplifies this complex calculation by considering factors such as the employee’s basic salary, length of service, and the nature of the termination.
To start with UAE gratuity calculator, it is a financial tool that helps employees in the UAE to get an estimation of the gratuity in UAE they will receive when they quit their job. Moreover, it is a beneficial tool to ascertain the gratuity amount if you are planning to leave the organization.Â
Also the UAE Gratuity Calculator is simple to use and functions on the standard UAE gratuity calculation method. As per the UAE labor laws, the UAE gratuity calculator is based on the type of employment, i.e., limited contract and unlimited contract. In the last we can see how to calculate the gratuity amount UAE based on the types of employment contracts.
The UAE Gratuity Calculator is essential for both employees and employers in the UAE. It ensures transparency and fairness in the computation of end-of-service benefits, which is crucial for maintaining trust between employers and employees.Â
With a Gratuity Calculator UAE, employees can accurately determine what they are entitled to upon leaving their job, reducing the chances of disputes over gratuity amounts.
In a limited employment contract in UAE, an employee agrees to stay with the company for a certain number of years and set a date. In case the employee resigns before the agreed time period, they can get a labor ban imposed on them, lose their labor rights, or even be liable to pay compensation to their employer.Â
Let us take an example to understand this a little better;
 Let’s assume that an employee’s basic salary is AED 15,000.
So, their per day wage will be = 15,000/30 = AED 500
Now, to calculate the gratuity in UAE of the employee, we need to multiply the per day wage by either 21 or 30 ( based on the duration of their service in the company), 500*21 = 10,500. So, the 21 days of salary would be AED 10,500. This amount will be received by the employee for each service year.
Please note that the total gratuity in UAE for employees working for 5 years or more should not exceed more than the total salary amount of two years.
In the unlimited employment contract in UAE, there is no specific period of years where the employee has to work for the organization. Generally, in this type of contract, an employee has to serve a 1 to 3 month notice period before leaving the organization. As a result, the UAE gratuity calculation, in this case, will be on the basis of the duration of service.
Calculation on the basis of the duration of service;
Here is an example to understand it better:
Let’s assume that an employee’s basic salary is AED 15,000
So, the employee’s per day wage will be = 15,000/30 = AED 500
The 21 days of salary becomes = 21*500 = AED 10,500
In addition, depending on the years of service, one-third or two-thirds of the 21 days of salary (10,500) will be UAE gratuity pay for the employee in an unlimited contract. In the case of employees with more than 5 or more years of service, the 21 days of salary will be calculated for the first five years and additional 30 days of salary for each month after 5 years of service.
Follow these steps to calculate gratuity in UAE online using the Zimyo UAE Gratuity Calculator:
In summary, the UAE Gratuity Calculator is an indispensable tool for anyone working or hiring in the UAE. It not only simplifies the process of calculating end-of-service benefits but also ensures that both parties are compliant with UAE labor laws.Â
By using a Gratuity Calculator UAE, employees can better plan their finances, and employers can avoid potential disputes. Whether you are an employee seeking clarity on your end-of-service benefits or an employer aiming for compliance and transparency, the UAE Gratuity Calculator is a valuable resource.
If an employee has spent more than 1 year but less than 5 years, he is entitled to full gratuity in UAE based on 21 days payout.Â
UAE Gratuity is calculated based on 21 days wage for each year of the first five years of their service, and 30 days wage for every additional year.
Gratuityin UAE paid to an employee is based on 21 day wages if he spent a time period of less than 5 years and 30 days if he spent 5 or more years.
The end of service benefits or gratuity in UAE is calculated on the basis of last salary drawn by the employee from the organization. The salary will not include allowances or perks paid.
