Knowing how to calculate your gratuity correctly is key to avoiding any confusion or misunderstanding. The Gratuity Calculator Dubai is a useful tool to help you calculate what you should get based on your years of service and salary.
Gratuity Calculator Dubai 2025
Disclaimer: This gratuity calculator is for UAE employees only to get an approximate estimation of their gratuity. It has no legal validity and is based on the most common employment scenarios under UAE Labor Law. Please note that this calculator only calculates the gratuity for the basic salary corresponding to the respective years of service. It does not include other end of service benefits or any other benefits like unused leave pay, air tickets, notice compensation and others. For a comprehensive calculation of all end of service benefits tailored to your case, it is recommended to consult a professional.
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Gratuity Calculator Dubai: A Full Guide
What is Gratuity
Gratuity is a tip, a voluntary payment made by a customer to an employee for good service. While common in many industries it’s not mandatory. In some countries gratuity is included as a service charge and in others it’s up to the customer’s discretion.
Gratuity in the UAE
In the UAE gratuity means something different. It’s a legal entitlement for the employee, paid as a lump sum upon termination of their employment contract. This is calculated based on the employee’s length of service and final salary as per the UAE Labour Law.
Who is entitled to Gratuity in the UAE?
Eligibility for gratuity in the UAE is based on:
- Employment Contract: Employees on limited and unlimited contracts are entitled to gratuity.
- Length of Service: Employee must have completed one year of service.
- Termination Conditions: Gratuity amount may vary if employee resigns or is terminated.
Types of Employment Contracts in the UAE
- Limited Contracts: These contracts specify a fixed employment duration. Upon completion, the employee is entitled to gratuity.
- Unlimited Contracts: These contracts have no fixed end date. Gratuity is calculated based on the employee’s length of service and final salary at the time of termination or resignation.
Calculating Gratuity in Dubai
The calculation of gratuity in the UAE depends on the employee’s length of service:
- 1 to 3 Years: 1/3 of the employee’s basic salary for each year of service.
- 3 to 5 Years: 2/3 of the employee’s basic salary for each year of service.
- Over 5 Years: Full basic salary for each year of service.
Important Considerations:
- Unpaid Leave: Days of unpaid leave are not included in the total service time for gratuity calculation.
- Termination: In case of termination, specific rules apply based on the reason for termination and the employee’s length of service.
Using a Gratuity Calculator
A gratuity calculator can simplify the process of determining the gratuity amount. By inputting the necessary information, such as basic salary and length of service, employees and employers can quickly and accurately calculate the gratuity payment.
Key Points to Remember:
- Gratuity is a legal right for employees in the UAE.
- Understanding the calculation method is crucial for both employees and employers.
- Utilizing a gratuity calculator can ensure accurate and efficient calculation.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. It’s essential to refer to the official UAE Labor Law and seek professional advice for specific situations.
