UAE is a federation of seven emirates making it one of the biggest states in the Gulf. Federal judiciary makes the laws which are a mix of Sharia and Civil laws and applicable to all emirates. The employment laws and policies are strictly followed ensuring concentrated assistance to the workforce community.

Finding a job in UAE is not everyone’s cup of tea. Lucky ones get a chance of being employed within the premises of UAE as it comes up with multiple amenities. UAE takes care of people who work hard to earn a living, either local or international bodies. Gratuity is one of the facilities employees get in the UAE.

What does Gratuity mean?

Gratuity refers to the end of service benefit (EOSB) which is offered to employees leaving a firm by the end of their tenure. International people working in the UAE are not subjected to get a pension when they leave any organization. Therefore, gratuity is paid as a thank you note to support them financially. 

Every organization must pay off the gratuity cheque foreign employees so that they can take a deep breath to plan for other sources of income. It is not favored at all but employees who have worked hard for the growth of any firm deserve getting a fine sum of money to keep their expanse chart free of debt

End of service calculator UAE is helpful for employees and employer to evaluate the total sum. Most of the corporate organizations hand over this task to their account department. Employees need to keep a track of their gratuity amount so that they claim any inaccuracies in future 

Factors Affecting Gratuity Calculations 

Ministry of Labour is responsible for devising the UAE Labour Law which takes account of on-job and end-of-service amenities to employed individuals. One should read the respective laws to proceed with gratuity calculator UAE as policies impact how much gratuity amount an employee will be getting.

Gratuity is not calculated in a blink of an eye but it involves serialized phases. If calculations are skipped or falsely done at any step, it will lead the employer or employee to suffer. Multiple factors affect the gratuity calculations for employees working in UAE like:

  • Employment contract type 
  • The reason behind leaving the job
  • The service period of an employee
  • Recently paid wage or basic salary

Either you are using a gratuity calculator or following a manual process to calculate the amount, keep all of the aforementioned points in mind. UAE laws do not allow any organization to seize the gratuity amount as it is the right of an employee. If a firm does not abide by it, strict legal actions are taken against them

How Much Gratuity Employees get in UAE?

The amount an employee owes as gratuity mostly depends upon the nature of their employment contract. How many years an employee has served the organization and the reason behind the end of their service are the additional elements to be discussed. Employment contract types and gratuity calculations are done as: 

  • Gratuity Calculator for Unlimited Contracts

Unlimited contract is an agreement that does not incorporate any fixed time and date as an employment period of any individual. Employees can serve the organization as long as they want. However, they have to provide a notice period of 1-3 months before leaving the firm.

Gratuity calculator Dubai for employees under unlimited contract could be evaluated as:

  • Evaluate per day salary of an employee
    • Multiple ⅓ parts of salary with 21 if the employee is working for more than 1 year

OR

  • Multiple ⅔ parts of salary with 21 if service years are greater than 3and less than 5

OR

  • Multiply per day wage with 30 for employees who have worked more than 5 years
    • It will be the annual gratuity 
    • Multiply the years of service with annual gratuity (Maximum 2 years)
    • The resultant amount shows the gratuity for unlimited contracts.
  • Gratuity Calculator for Limited Contracts

Employees who sign the contract of serving any organization for a certain period are considered to be working under limited contract. If an employee resigns before the completion of the said time period, it is most probable that he will not get gratuity or other facilities offered by the company

Gratuity calculator Dubai for limited contracts works as:

  • Evaluate per day salary of an employee
    • Multiple the employee wage with 21 if he has served the firm more than 1 year

OR

  • Multiply per day wage with 30 for employees who have worked more than 5 years
    • The resultant will show the annual gratuity 
    • Multiply the years of service with annual gratuity 
    • Resulting figures show the gratuity an employee will be getting from the company

Is Notice Period included in Gratuity computation?

The notice period, from an employee in case he is resigning, should be added in the years of service as well. However, employees must be careful while working with the company within the notice period. They must attend office regularly otherwise it would affect the years of service thus leading to major issues.

If the employer claims that an employer is not working properly under the notice period whereas his service years are not completed as per gratuity terms, thus the company will have the authority to cancel his gratuity on legal grounds. Employees who served an organization less than a year cannot get gratuity.

Employees should abide by the UAE principles to get the gratuity as per the evaluations they had made with the Gratuity calculator. End of service calculator UAE will only give an estimate of how much money an employee will be getting. It is the responsibility of the employee to work as per the rules and regulations to avoid any issues in the future