UAE End of Service Gratuity Calculator
Instantly estimate your gratuity based on UAE Labor Law (Article 51). 100% free, runs in your browser, no data saved.
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How to Calculate End of Service Gratuity in the UAE (2024 Guide)
Understanding your UAE end of service benefits (EOSB) is crucial for every employee and HR professional. Under UAE Labor Law Article 51, gratuity is calculated based on your basic salary and years of service.
Key Rules for Gratuity Calculation:
- Less than 1 year: No gratuity is payable if you resign. If terminated by the employer, you receive 21 days basic pay per year.
- 1 to 3 years: Resigning employees are entitled to 1/3 of the gratuity.
- 3 to 5 years: Resigning employees are entitled to 2/3 of the gratuity.
- More than 5 years: Full gratuity is payable (21 days basic salary for the first 5 years, and 30 days for each subsequent year).
Frequently Asked Questions
Is gratuity calculated on basic salary or total salary?
Gratuity is strictly calculated on the basic salary only, excluding housing, transport, and other allowances.