Gratuity In UAE
Gratuity is the end of the service benefit that an employee would get from the organisation he/ she was working in. Generally one becomes eligible to receive Gratuity only after the completion of 1 year year of service. Any employee who leaves the company before the completion of one year service will not receive any gratuity. There is a particular way to calculate the Gratuity which is based on the number of years and type of Gratuity. Thus, an employee working in UAE must know How To Calculate Gratuity In UAE. Knowing How To Calculate Gratuity In UAE is not just important to calculate the Gratuity but also to ensure that the person has received his entitled Gratuity which they would be able to know only if they know How To Calculate Gratuity In UAE.
Requirements For How To Calculate Gratuity In UAE
As stated earlier, to be able to go ahead with the process for How To Calculate Gratuity In UAE, one must know the type of Contract he/ she has and number of years served. Given below are some of the points in each of the criterias
Type Of Contract
This is when the employee joins the organisation with a contract that states that this employee has to work for a particular number of years or months or days.
If the employee resigns before fulfilling the terms of the contract the employee is not eligible for any end of service benefit including Gratuity
This is when there is no contract when joining the organisation
In such cases the employee is eligible for Gratuity on resigning
Provided that the employee gives a month or three notice before resigning.
Years Of Service
|Years Of Service||Gratuity Calculation|
|Less Than 1 year||No Gratuity|
|1 to 5 Years||Gratuity based on 21 days salary|
|More than 5 Years||Gratuity based on 30 days salary|
How To Calculate Gratuity In UAE?
The process for How To Calculate Gratuity In UAE is quite simple and does not require much effort on part of the employee. All they need to do is calculate their daily wage and multiply it by 21 if their service is less than 5 years or 30 if it is more than 5 years. Given below is an example for How To Calculate Gratuity In UAE to make things even more simpler for you
For instance the salary of ABC is AED 12000
Now let us find out the per day salary: 12000 / 30 = 400
If your years of service is less than 5 years here is How To Calculate Gratuity In UAE for this salary
400 * 21 = 8400
If you have served the organisation from anywhere between 1 to 3 years you will get 1/3rd of the 21 days salary which is
8400 * ⅓ = 2800
The Gratuity earned by the employee would 2800 for each completed year
If you have served the organisation from anywhere between 2 to 5 years you will get 2/3rd of the 21 days salary which is
8400 * ⅔ = 5400
The Gratuity earned by the employee would 5400 for each completed year
If your years of service is more than 5 years here is How To Calculate Gratuity In UAE for this salary
400 * 30 = 12000
And for those who have served more than 5 years they will get the full gratuity for each year they serve
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