1. What is UAE Gratuity Calculation?

The UAE Gratuity calculation determines the end-of-service benefit that employees are entitled to receive upon completion of their employment. The amount depends on salary, length of service, and the applicable days rate (21 or 30 days per year of service).

2. How Does the Calculator Work?

The calculator uses the UAE Gratuity formula:

Where:

• \( Salary \) — Basic salary in AED
• \( Days\ Rate \) — 21 or 30 days per year of service
• \( Service \) — Length of service in years

Explanation: The formula calculates the total gratuity amount based on the employee's basic salary multiplied by the applicable days rate and years of service.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation is crucial for both employers and employees to ensure proper end-of-service benefits are paid according to UAE labor law.

4. Using the Calculator

Tips: Enter basic salary in AED, select the appropriate days rate (21 or 30), and enter years of service (can include fractions like 1.5 for 1 year 6 months). All values must be valid (salary > 0, service > 0).

5. Frequently Asked Questions (FAQ)

Q1: When is 21 days vs 30 days rate used?
A: 21 days is typically for employees with less than 5 years of service, while 30 days is for those with 5+ years of service.

Q2: Is gratuity based on basic salary or total salary?
A: Gratuity is calculated based on basic salary only, excluding allowances and bonuses.

Q3: What's the maximum gratuity amount?
A: The maximum is 2 years' salary (24 months) regardless of service length.

Q4: Are part-time years counted?
A: Only full-time service years are counted for gratuity calculation.

Q5: What if service is less than 1 year?
A: Employees are entitled to gratuity if they complete at least 1 year of service.