Gratuity Calculator UAE Online

Calculate in Gratuity Calculator UAE
Gratuity Calculator | UAE

UAE Gratuity Calculator

Did You Know?

Gratuity in the UAE is calculated based on your last drawn salary and the number of years you’ve worked with your employer. Make sure you know your rights!

Gratuity Calculator UAE 2024: If you are an employee, you have the privilege to know your financial liberties. It especially calculates the end-of-service concessions. Gratuity is an important part of these benefits in the UAE, Dubai, Abu Dhabi, and Sharjah. It is mandatory to know how to calculate it hassle-free and may make a huge difference.

This article is designed to help you use the UAE gratuity calculator to ensure that your gratuity benefits are exactly what you are entitled to based on UAE labor laws.

What is Gratuity in the UAE?

Gratuity is an end-of-service benefit that an employee acquires after completing the term of the work. It is a one-time monetary when an employee finishes their work contract and they get as an appreciation token of the service mandate by the country’s labor laws.

The gratuity calculator is a tool for understanding and calculating expected gratuity amounts, but is not a legal tool and may contain errors due to factors like compensation, employment conditions, or incomplete information. It’s not liable for errors.

The UAE Gratuity Calculator is an online tool that streamlines the process of calculating your end-of-service gratuity. It is designated for the assistance of employees in assigning the due they are entitled to upon termination of their employment contract, whether through resignation or dismissal.

The calculator requires the following inputs:

  • Basic Salary (AED): This is the final salary before any deductions or allowances.
  • Start Date: Date of commencement of your employment.
  • End Date: The date when your employment is finished.

After entering these details once, the calculator will provide an estimate of your gratuity based on the number of years you have worked with the employer and the basic salary amount.

Steps to Calculate Your Gratuity:

  • Enter Your Basic Salary: Enter your last drawn basic salary in the specified field. Basic salary is the amount before any allowances or deductions.
  • Select Your Start Date: Utilize the date picker to select when you started working with your employer. This date is important as it determines the duration of your service.
  • Select Your End Date: Similarly, select the date your employment ended. The difference between the start and end dates will be used to calculate the number of years, months, and days you worked.
  • Click on ‘Calculate Gratuity’: After entering all the required information, click the button to calculate your bonus. The result will be displayed instantly, showing the amount you are entitled to based on UAE labor laws.

Understanding the Gratuity Calculation:

In the UAE, the calculation of gratuity is based on the following guidelines:

  • First 5 Years of Service: For the first five years of service, the employee will receive 21 days of basic pay for each year of service.
  • More Than 5 Years of Service: For any years of service beyond the first five, gratuity is calculated at 30 days of basic pay for each additional year.
  • Total Gratuity Cap: The total gratuity should not be equal to two years’ basic salary.

Gratuity Calculation Formula in UAE

Example of Gratuity Calculation:

Let’s consider an example:

  • Basic Salary: AED 10,000
  • Service Duration: 7 years

For the first 5 years:

  • Gratuity = 21 days x 5 years x AED 10,000 / 30 days = AED 35,000

For the next 2 years:

  • Gratuity = 30 days x 2 years x AED 10,000 / 30 days = AED 20,000

Total Gratuity: AED 35,000 + AED 20,000 = AED 55,000

This amount refers to the gratuity payable to the employee for their service period.

Why Use the UAE Gratuity Calculator?

Using the UAE Gratuity Calculator is essential for several reasons:

  • Accuracy: The calculator ensures that you get an accurate estimate of your gratuity based on current UAE labor laws.
  • Ease of Use: With a simple interface, it’s easy to use even if you’re not familiar with gratuity calculations.
  • Time-Saving: The calculator provides instant results, saving you time from manual calculations.

Key Considerations When Using the Calculator:

  • Employment Contract: Make sure your contract complies with UAE labor laws, as different contract types may affect the gratuity calculation.
  • Notice Periods: Factor in any notice periods if you are resigning or being terminated, as they may affect the calculation.

Conclusion

As my recommendation, it is a valuable tool for any employee glancing to perceive their end-of-service benefits. If you want to get your gratuity you should enter your details and get the gratuity estimate you are entitled to, allowing you to better plan your finances as you move from one job to another. For the employee, the Gratuity Calculator enables better financial planning and staying on top of gratuity entitlements, especially during job changes.