UAE Gratuity Calculator (Limited Contract)
Enter the following information to calculate your Gratuity.
Gratuity Calculator
As per UAE Labour Law, employees working in UAE are entitled to be paid by employer gratuity pay at the end of employment provided one year of service has been completed. No gratuity will be paid if employee resigns or gets terminated before one year of employment.
Important factors for calculating gratuity
- Last basic salary The last basic salary is to be used as a basis for calculating gratuity but any other bonus and allowances such as housing, conveyance, overtime, children's education, etc. are not to be included in the gratuity Calculations.
- Duration of employment At least one year of employment should have been completed to be entitled to gratuity.
Please also note Gratuity computation should be based on continuous employment. In other words, if the employee has been absent from work without pay during his/her period of service, that period should not be considered in calculating gratuity. However, please note that the above gratuity calculator assumes that there is continuous service between the first and last working day. Therefore, in cases where employment is not continuous, the calculations done by the gratuity calculator will need to be adjusted accordingly.
How the Gratuity calculator works
For an employee who has a limited contract, then the following rule shall apply for calculating gratuity:- Period of employment less than 1 year, the employee is not entitled to any gratuity.
- Period of employment between 1 year to 5 years, the employee is entitled to gratuity based on 21 days’ salary for each year of work.
- Period of service of more than 5 years, the employee is entitled to a gratuity of 30 days’ salary for each year of work after 5 years plus 21 days’ basic salary for each year for the first 5 years.
- Total gratuity should not exceed two-year of the basic salary.
- The above gratuity calculator assumes that the employee has completed his limited-term employment contract.
