Gratuity Calculator UAE 2024: Online Gratuity Calculator

Gratuity Calculator Dubai, UAE

At the end of their employment, UAE workers receive a multitude of rewards. One of the main perks is the gratuity. It is the amount owed to your employer upon leaving your position or when your employment term expires. Sometimes workers aren’t aware of this advantage. They are unaware of the UAE’s gratuity policies, how to calculate one, and the variables that may affect it.

Our Gratuity Calculator UAE can assist you in understanding your rights and precisely calculating your gratuity in accordance with UAE regulations if you’re one of those people who needs clarification. Our goal is to help you make well-informed decisions about your end-of-service benefits.

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How to Calculate Gratuity in UAE using “Gratuity Calculator UAE”?

Here is a straightforward step-by-step guide for calculating your gratuity:

Begin by choosing your contract type: limited or unlimited.
Select the circumstances for the end of service as either termination or resignation.
Next, please input your base salary
Press calculate and get your gratuity computation in no time.
Using our gratuity calculator in Dubai, you can easily compute your gratuity without the need for any formulas or complex calculations. It will effectively accomplish the task for you.

This end-of-service calculator in the UAE is advantageous primarily for those whose employment duration exceeds one year and who have experienced a lawful termination accompanied by a commendable work history.

Crucial Factors for Gratuity Calculation in UAE

Calculating gratuity with our gratuity calculator is straightforward. But before calculating your gratuity, you must understand some basic rulings. Several elements influence your gratuity calculations:

Eligibility Criteria:

Your gratuity is according to your working tenure.
You are not eligible for gratuity if your working tenure is less than a year

Contract type

Your contract type also impacts your gratuity calculations.

Contract Type with Restrictions

If your employment duration is between 1 and 5 years, you will receive a gratuity equivalent to 21 days’ salary for each year worked.
If your service period exceeds 5 years, you will receive a gratuity equivalent to 21 days of salary for the initial 5 years and 30 days of salary for each subsequent year beyond the 5th year.
Your total gratuity should not exceed your basic pay for a duration of 2 years.
Upon the completion of your working tenure, you will qualify for your gratuity.

Unlimited Contract Type

For an unlimited contract type, the calculation of your gratuity is determined by the duration of your service and the conditions surrounding your end of service.

In case of termination:

If your working period is between 1 and 5 years, you will get a salary of 21 days as a gratuity for each year.
If your service period exceeds 5 years, you will receive a gratuity equivalent to 21 days of salary for the initial 5 years and 30 days of salary for each additional year beyond the 5th year.
Your total gratuity should not exceed your basic pay over a period of 2 years.

In case of resignation:

If your working period ranges from 1 to 3 years, you will receive one-third of your 21 days’ salary as gratuity for each year worked.
If your working period is between 3 and 5 years, you will receive two-thirds of 21 days’ salary as gratuity for each year.
If your service period exceeds 5 years, you will receive a gratuity of 21 days’ salary for the initial 5 years, followed by 30 days’ salary for each subsequent year beyond the 5th year.
Your total gratuity should not exceed your basic pay over a period of 2 years.

UAE gratuity calculation formula

Our gratuity calculator in Dubai is designed to help you estimate your gratuity amount effectively. If you’re interested in a thorough understanding of how to manually calculate gratuity, here are the guidelines and formulas to follow.

How To Calculate Gratuity In UAE For Limited Contract

To estimate your gratuity after finishing your service period on a limited contract, you can use this formula.

Divide your basic salary by 30 to get your per-day salary.

Basic Salary/30 = per-day salary
For instance, if your basic salary is 9,000 Dirhams,
9,000/30= Dh 300

Now, multiply your per-day salary by 21 to get your 21 days` salary. It is your per-year gratuity.

Per day salary * 21= = per year Gratuity
300*21= Dh 6,300

If your service tenure is between 1 and 5 years, multiply your 21 days` salary by the number of years.

Per year gratuity * Service years = Gratuity
For 3 year contract,
6300*3= Dh 18,900

If your service tenure is more than 5 years, then multiply your basic monthly salary for the 5th year onwards.

For instance, if your service tenure is 7 years,
9000*2= Dh 18,000.
It will be your gratuity for the 6th and 7th year.

Your total gratuity will be the sum of the gratuity of the first 5 years and the gratuity of the 5th year onwards.

Gratuity of first 5 years + Gratuity of 5th year onwards = Total Gratuity
18,900 + 18,000= Dh 36,900

How To Calculate Gratuity In UAE For Unlimited Contract

Your gratuity calculations will stay consistent in the event of termination under an unlimited contract type. However, if you have resigned from your position, incorporate these steps into the gratuity calculation.

Divide your basic salary by 30 to get your per-day salary.

For Dh 9,000 basic salary,
9,000/30= Dh 300

Now, multiply your per day salary by 21 to get your 21 days` salary.

300*21= Dh 6,300

If your service tenure is between 1 to 3 years, calculate one-third of 21 days` salary

6300* 1/3 = Dh 2100
It is your per-year gratuity.

Now multiply this amount by your number of service years.

For instance, for 2 years
2100*2 = Dh 4200
It will be your gratuity amount.

If your service tenure is between 3 to 5 years, calculate two-thirds of 21 days` salary

6300* 2/3 = Dh 4,200
It is your per-year gratuity.

Now multiply this amount by your number of service years.

For instance, for 4 years:
4200*4 = Dh 16,800
It will be your gratuity amount.

If you resign after more than 5 years of service, your gratuity calculation will be the same as for a limited contract-type employee.