[WP-Coder title=”Cal UAE 1″]
Calculating gratuity in the UAE depends on several factors, including the type of contract you have and the length of your service period. Here’s a general guide on how to calculate gratuity in UAE:
To calculate your gratuity pay, simply multiply your basic salary by the appropriate factor based on the number of years you’ve completed. For example, if you’ve completed three years on an unlimited contract with a basic salary of AED 5,000 per month, your gratuity pay would be calculated as follows: (21 days x AED 5,000) + (30 days x AED 5,000) + (30 days x AED 5,000) = AED 45,750
It’s important to note that there may be additional benefits that contribute to your gratuity calculation, such as housing allowances or transportation allowances. Make sure to include all such benefits in your calculation.
How to Calculate Gratuity in UAE 2022
First, let’s understand exactly what gratuity is. in simple words, gratuity is the amount which will receive after completing or serving the company for a certain period of time in return for service employer will have to give some amount (to calculate the amount we will see the formula below paragraph).
what is gratuity calculation in UAE?
If you want to calculate gratuity manually then you can find the amount by simply entering your basic salary and the number of years of service.
But this Online Gratuity Calculator Tool does it for you easily. this calculator is easy to use and also you can find an estimate of how much gratuity you can get when you retire.
How Gratuity Calculator Works
- Select the “Select Contract Type”
- Then Select the Location of your employment
- Circumstances if applicable
- Basic Salary
- For how long have you worked in the company?
How to Calculate your Gratuity in UAE (Gratuity Calculator)
Which are the types of contracts?
There are two types of contracts in the UAE (Dubai, Sharjah, and Abu Dhabi) limited and unlimited contracts.
let’s see what the difference between limited and unlimited contracts
you can also visit the official website for more information.
How to calculate gratuity in UAE for unlimited contract
In unlimited contracts, there is no need to stay or serve specific years and number of days. the employee has not bound to any contact like limited contact. but remember one to three months notice period is required for the same.
The formula for Unlimited Contract
- 1 to 3 years of service
Gratuity = (Basic salary x 7 days x service years)/30 - 3 to 5 years of service
Gratuity = (Basic salary x 14 days x service years)/30 - 5 or more years of service
Gratuity = (Basic salary x 21 days x service years)/30
How to calculate gratuity in UAE for a limited contract
In limited contracts employees need to stay or serve specific years and number of days.
The formula for Limited Contract
- 1 to 5 years of service
Gratuity = (Basic salary x 21 days x service years)/30 - 5 or more years of service
Gratuity = (Basic salary x 30 days x service years)/30
New gratuity law in UAE 2022 calculator
As per the new gratuity law, you have to read this article
"Please note that these calculations and information is just for reference purposes for more accurate and updated information, visit the UAE Ministry of Human Resources and Emiratisation (MOHRE)."
Gratuity Laws in Dubai
