Definitive Guide to Gratuity Calculation!

Detailed Guide to Gratuity Calculation.

If you live and work in UAE or are doing business in UAE, you must make yourselves familiar with the Labour Laws that are present here. The UAE Labour Law provides you with your rights and protection through Ministry of Labour. Every company under the purview of Ministry of Labour is subject to UAE Labour Law. Even free zone entities refer to UAE Labour Law in their rules and regulations. Gratuity Calculation can be a daunting task if you are trying to calculate an employee’s gratuity considering the various parameters UAE Labour Law has to it. There can be many possible conditions to calculate gratuity. In this article I will provide you a most comprehensive and easy way to understand and calculate gratuity. By the end of reading this article, you’d have understood various scenarios and possibilities of calculating gratuity.

eosb-calculatot

One of the most important topics under UAE Labour Law is Gratuity Calculation or End of Service Benefits/Remuneration – EOSB. While End of Service Benefits is a broader term, in this article I will use Gratuity as a term which entitles every employee with a rightful amount at the end of their employment with a company. When you resign or are terminated, you are eligible for Gratuity as per UAE Labour Law. This guide will provide you step by step guidance to calculate gratuity in case of:

  • Resignation;
    • Unlimited Contract.
    • Limited Contract.
  • Termination;
    • Unlimited Contract
    • Limited Contract.

Further there are many situations under this that are possible like term of employment. At the end of this short tutorial, you will learn how to calculate gratuity under various circumstances.

You can learn more about Unlimited Contract or Limited Contract.

Basis of Gratuity Calculation

Gratuity is calculated based on the latest drawn Basic Wage. UAE labour Law also lists basic rule for Gratuity Calculation. As per the Article 132 of UAE Labour Law, it is mentioned that:

The employee who has completed one year or more in the continuous service, is entitled to the end of service remuneration at the end of his service. Days of absence from work without pay are not included in computing the period of service, and the remuneration is to be calculated as follows:

gratuity-calculation-basis-emirates-diary

Here is a simple illustration of various possibilities:

Resignation - Unlimited Contract 
Service Less than 1 yearEOSB Not Applicable
Service between 1 year to 3 yearsEOSB at 1/3rd of 21 days Basic Salary X number of years
Service between 3 years to 5 yearsEOSB at 2/3rd of 21 days Basic Salary X number of years
Service of more than 5 yearsEOSB at 21 days basic salary for first 5 years + EOSB at 30 days basic salary for rest of the years

Termination - Unlimited Contract 
Service Less than 1 yearEOSB Not Applicable
Service between 1 year to 3 yearsEOSB at 21 days Basic Salary X number of years
Service between 3 years to 5 yearsEOSB at 21 days Basic Salary X number of years
Service of more than 5 yearsEOSB at 21 days basic salary for first 5 years + EOSB at 30 days basic salary for rest of the years

Resignation - Limited Contract 
Service Less than 1 yearEOSB Not Applicable
Service between 1 year to 5 yearsEOSB at 21 days Basic Salary X number of years
Service of more than 5 yearsEOSB at 21 days basic salary for first 5 years + EOSB at 30 days basic salary for rest of the years

Termination - Limited Contract 
Service Less than 1 yearEOSB Not Applicable
Service more than 1 yearEOSB at 21 days Basic Salary X number of years

1. Gratuity Calculation – Unlimited Contract

1.1 Resignation with Less than a year of Service

Gratuity is applicable only when an employee completes One Year of continuous service with a company. This is mentioned in the Section 2 – End of Service Remuneration of the UAE Labour Law Article 132.

gratuity-calculation-basic-salary

1.2 Resignation with service of more than 1 year but less than 3 years

If an employee on Unlimited contract who has resigned with a service of more than 1 year and less than 3 years, he/she is eligible for 1/3rd of 21 day’s basic salary for every year of service.

Illustration of the above:

  • Basic salary = AED 10,000 per month
  • Joining date = 01-01-2010
  • End date = 31-03-2011
  • Total number of days worked = 455 days
  • Total number of years worked = 1.25 years
  • 21 days’ Basic salary = AED 6904.1
  • Wages per day = AED 10,000*12/365= 328.76
  • Amount of wages for number of years: 21*328.76*1.25 = 8,606.49
  • Gratuity Amount: 1/3*8606.49 = 2,868.83

1.3 Resignation with service of more than 3 years but less than 5 years

If an employee under unlimited contract has resigned with a total service of more than 3 years and less than 5 years, he/she will be eligible for a gratuity amount of 2/3rd of the 21 day’s basic salary for every year worked.

Illustration of the above scenario:

  • Basic salary = AED 10,000 per month
  • Joining date = 01-01-2008
  • End date = 31-03-2011
  • Total number of days worked = 1,186 days
  • Total number of years worked = 3.25 years
  • 21 days’ Basic salary = AED 6904.1
  • Wages per day = AED 10,000*12/365= 328.76
  • Amount: 21*328.76*3.25 = 22,433
  • Gratuity Amount: 2/3*22,433 = 14,955.75

1.4 Resignation with service of more than 5 years

If an employee under unlimited contract has resigned with a total service of more than 5 years, for the first 5 years he/she is eligible for 21 day’s basic salary for every year worked and 30 day’s basic salary for every number years worked after that.

Illustration:

    • Basic salary = AED 10,000 per month
    • Joining date = 01-01-2005
    • End date = 31-03-2011
    • Total number  of days worked (31-03-2011-01-01-2005+1)= 2281 days
    • Total number of years he worked=1916/365= 6.25
    • 21 days’ Basic salary = 328.76*21= AED 6,904.1
    • 30 days’ basic salary=328.76*30= AED 9,863.01
    • Wages per day = AED 10,000*12/365= 328.76
    • Total gratuity=21*328.76*5=34,520.55+(2,218/365-5)*30*328.76=2,459.00=46,842

1.5 Termination with service of less than 1 year

If you are terminated before the completion of One year of service, you are not eligible for Gratuity. This is the basic rule of Gratuity Calculation.

1.6 Termination with service of more than 1 year and less than 3 years

If you have been terminated from your employment, with a service between 1 and 3 years, you are eligible for 21 day’s basic salary for each year worked.

Illustration:

  • Joining date 1-1-2010
  • End date 31-03-2012
  • Basic Salary 5,000/- per month
  • Basic Salary per day =Basic Salary X 12/365=164.38
  • Total no of days worked=Joining Date-End Date=821
  • Total no of years worked=Total no of days worked/365=2.25
  • 21 days’ Basic Salary=Basic Salary per day X 21 days=3452.05
  • Gratuity Amount=Total no of years worked*21 days’ Basic Salary=7,764.76

1.7 Termination with service of more than 3 years and less than 5 years

If you have been terminated with a total service of between 3 and 5 years, you are eligible for 21 day’s basic salary for each year of service.

Illustration:

  • Joining date 1-1-2010
  • End date 31-03-2014
  • Basic Salary 5,000/- per month
  • Basic Salary per day =Basic Salary X 12/365=164.38
  • Total no of days worked=Joining Date-End Date=1551
  • Total no of years worked=Total no of days worked/365=4.25
  • 21 days’ Basic Salary=Basic Salary per day X 21 days=3452.05
  • Gratuity Amount=Total no of years worked*21 days’ Basic Salary=14,668.87

1.8 Termination with service of more than 5 years

If you have been terminated or fired from your employment under unlimited contract with more than 5 years’ of service, you shall be eligible for 21 day’s basic salary for the first five years and 30 day’s basic salary for each year of service after five years.

Illustration:

  • Joining date 1-1-2008
  • End date 31-03-2014
  • Basic Salary 5,000/- per month
  • Basic Salary per day =Basic Salary X 12/365= 164.38
  • Total no of days worked=Joining Date-End Date= 2282
  • Total no of years worked=Total no of days worked/365=6.25
  • 21 days’ Basic Salary=Basic Salary per day X 21 days= 3452.05
  • 30 days’ Basic Salary=Basic Salary per day X 30 days= 4,931.51
  • Gratuity Amount=up to 5 years=21 days salary+30 days salary after 5 years
  • Total amount of Gratuity=23,434.79

Other benefits in case of termination:

  • Payments equivalent to accrued but un-utilised leave or any part thereof;
  • Payments for overtime or any wage due and not yet paid;
  • A notice period or payment due in lieu of the notice period which is mentioned in the employment agreement;
  • Repatriation expenses to the employee’s country of domicile as per the Labour Law or as stipulated in the employment agreement;
  • The compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause (generally to a maximum of three months).

Please also note that company has rights to deduct any advances, loans you have taken from the final gratuity amount.

2. Gratuity Calculation – Limited Contract

Under limited contract, if you have terminated the contract, meaning if you as employee resign within 5 years of service, you will not be eligible for gratuity. If you have a limited contract, Gratuity is slightly different in the labor law. The factor of 1/3rd or 2/3rd does not apply under limited contract. Everything else remains the same. Below I will try and explain it in various scenarios:

2.1 Resignation without completing your Limited Contract

If you have not completed your Limited Contract as mentioned in your Contract, you will not be eligible for Gratuity under Limited Contract. Meaning, if your limited contract is for a period of 2 years, and you have resigned from your job at 1 year and 2 months, you will not be eligible for any Gratuity. This is mentioned clearly in the UAE Labour Law Article 138. The only exception to this rule is that you resign under limited contract after completing 5 years of continuous service.

no-gratuity-if-you-resign-without-completing-limited-contract-uae-labor-law

2.2 Resignation after completing your Limited Contract with service of 1 to 5 years

If you have completed your limited contract and it is within 1 to 5 years, you are eligible for 21 day’s basic salary for each year of service.

Illustration:

  • Joining date: 1-1-2008
  • End date: 30-12-2012
  • Basic Salary: 5,000/- per month
  • Basic Salary per day = Basic Salary X 12/365=164.38
  • Total no of days worked=Joining Date-End Date=1826
  • Total no of years worked=Total no of days worked/365=5 years
  • 21 days’ Basic Salary=Basic Salary per day X 21 days=3452.05
  • Gratuity Amount=Total no of years worked*21 days’ Basic Salary=17,269.73

2.3 Resignation with service of more than 5 years of service

If you have completed more than 5 years of continuous service with your company and have resigned, then for the first 5 years you are eligible for 21 day’s basic salary and for service above 5 years, you are eligible for 30 day’s basic salary for every year of service.

Illustration:

  • Joining date: 1-1-2008
  • End date: 31-12-2013
  • Basic Salary: 5,000/- per month
  • Basic Salary per day =Basic Salary X 12/365=164.38
  • Total no of days worked=Joining Date-End Date=2192
  • Total no of years worked=Total no of days worked/365=6.01
  • 21 days’ Basic Salary=Basic Salary per day X 21 days=3452.05
  • 30 days’ Basic Salary=Basic Salary per day X 30 days(for above 5 years)=4931.4
  • Gratuity Amount=5*21 days’ Basic Salary + 1*30 days basic salary = 22,191.00

2.4 Termination with service of less than 1 year

If your length of service is less than 1 year and you have been terminated, then you are not eligible for any gratuity. However, you may be eligible for other benefits under limited contract.

2.5 Termination with service of more than 1 year

In case you are terminated from your services on Limited Contract with a service of more than 1 year up to 3 years, you are eligible for gratuity of 30 days for every year of service.

Illustration:

  • Joining date 1-1-2010
  • End date 31-03-2012
  • Basic Salary 5,000/- per month
  • Basic Salary per day =Basic Salary X 12/365=164.38
  • Total no of days worked=Joining Date-End Date=821
  • Total no of years worked=Total no of days worked/365=2.25
  • 30 21 days’ Basic Salary=Basic Salary per day X 30 21 days=3451.98
  • Gratuity Amount=Total no of years worked*30 21 days’ Basic Salary=7766.95

(There were errors in the calculation and have been corrected after feedback from readers. Thank you!)

What is the maximum Gratuity that you can get?

Under Article 132 of Labor Law, you can clearly read that the maximum gratuity amount can not exceed 2 years’ gross salary.

maximum gratuity amount uae

Do I get 3 month salary in case of termination?

Under Limited Contract, if you are terminated for any reason other than mentioned in Article 120, you are eligible for 3 month’s compensation or remuneration till the end of your remaining contract, whichever is shorter. This is covered in the Article 115 of the UAE Labour Law.

compensation-while-getting-fired-uae

When is gratuity not applicable?

Gratuity is not applicable in the following scenarios: (covered under Article 139)

when can employee not receive gratuity eosb

  1. If you are terminated or dismissed as per the provisions of Article 120 of UAE labour Law;
  2. If you leave work without serving notice period other than for factors under Article 121 under unlimited contract;
  3. If you leave or resign from limited contract before completion of 5 years.

Article 120 of UAE Labour Law

Read post on Article 120 – Termination Reasons

article 120 of uae labour law when can employer terminate employee

Article 121 of UAE Labour Law

Read Article on When you can Terminate Labour Contract as Employee

article 121 of uae labour law when can employee terminate labour contract

What should you do if your employer does not settle your lawful gratuity?

If you do not receive your gratuity or end of service remuneration, you could visit MOL or log on to their online portal to file a complaint of non-receipt of your gratuity.

As emphasised earlier, it makes all the sense for you to calculate and be satisfied with your gratuity calculation in case you are terminated or if you have resigned from your job. Many employers do take advantage of  their employees by falsifying the gratuity report.

Still having difficulty calculating your gratuity? Help is at hand. Please submit your request at the following link and I will calculate it for you. Link to Gratuity Calculator.

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.

143 Comments

  1. Mr. Deepak, I would like to share my situation in my company here in Abu Dhabi, it will be highly appreciated if you can comment on these:

    I am working as a procurement officer in a contracting company from March 26, 2016 until May 2018. I went on an annual vacation for one month, but I exceeded fifteen (15) days. Now as I returned to work our HR manager initiated a memorandum informing me that the excess of fifteen (15) days absent will be deducted from my gratuity.

    Is there any legal basis for such deduction on my gratuity as soon as my contract expires?
    Is the company legally allowed to do such deductions?

    Your opinion and comment would be of great help to me.

    Thank you very much in advance…

  2. I terminated from company on last month.
    I worked more than 5 years.( 8th feb:2012-sep16th 2017) also I have 37 days
    annual leave balance.
    wrote in termination letter you have one month service money get from company.
    here how calculate the gratuity 30 days or 21 days.
    please clear me my doubt .my basic 2200/-
    my gross salary monthly 5350/- including all allowance.

  3. Hello, I have a doubt, at a friends work, they terminated him like 3 months ago, the bank all the time is telling him that he cannot get the money of the termination because first he need to find some other work and then they are goin to liberate his money. Is that possible?

  4. hi deepak can have ur advice I am on notice period my company ask me to take my notice as my annual vacation so how would they pay me for notice and annual leave as well ??

  5. Hi Deepak, Can you please advise that I am Mechanical Engineer and same mentioned on my visa as well. I have just completed my limited contract of two years and same I signed for next two years also but just after 3 months of renewal which is limited contract, now I have got new opportunity so If I resign now then Can company put a ban? , Gratuity will be applicable in this situation and how much amount I need to pay to company and last question ” How many days ( 30 or 45 days ) I have to give in my notice period ? and How many days company will take to cancel my visa?
    Please advise me thanks

  6. Hi,
    From MOL contract article 5.6 and 119 mentioned as “wage” /”last wage”. Is it “wage” inlcuded basic & other allowances or basic only..
    In article 5.12 says, wage is calcuated for 21 and 30 days . Kindly let me know the latest labour law for calcaution considered based on “basic” or “wage”

  7. Hai i have a employee whose basic salary is 600 and he on a limited contract he just completed 4 years and 7 months of service and he sent a resigination letter stating he has an emergency so he needs to leave the country please let me know will he recive any gratuity and any leave salary or any other benifits

  8. Hi i would like to ask im on unlimited contract. I am now on my one year and six months. Suddenly our owner came and reduced my salary because of financial crisis. He said that all employees salary will be reduced. But i found out the next day that it was only me. And the new contract that ive signed was my old contract and the amount was just deleted by ballpen. He just printed a new last page of the contract for signature. Is that even valid? And his reason for deducting my salary? And i found out the company wasnt on any financial crisis because new staffs are coming. What should i do? Thanks. Please reply.

  9. Hi, I had been working in Hamriyah Free Zone company for last 5 year(Joining date 21st Aug 2012). I had completed my 1st visa(stamped on 3rd sept2012) for 3year on 3rd sept 2015 and continued working with 2nd visa in same company with next visa for 2 years from visa stamped dates-12th sept 2015 to 13th sept 2017. I had been asked in my company to work till 30th sept 2017 and then my visa will be cancelled on 2nd oct 2017. I had taken a total leaves of 150 days including my annual vacation till date. Can you please let me how much my gratuity amount will be as my current basic salary is AED 6000/-.

  10. Hi, I had joined my company in Hamriyah Free zone Sharjah, on 21 Aug 2012 and my Visa will be cancelled 1st October 2017. However my 1st visa for 3 years was stamped on 3rd Sept 2012 and 2nd visa for 2 years on 12 sept 2015. I had taken total leaves of 150 days including my annual leave, for which i was paid with my leave salary annually after completion of each year( total 4 leave salary paid till now). Can you please let me know how much my gratuity amount will be as per my current basic salary of AED 6000/- and other benefits.

  11. Hi, I have joined the company in Nov 2014. After 32 months I have resigned. Now I am in notice period. But so far the company never paid my sales commission as agreed . In this case , can I claim to get my commission along with end of service .

  12. Hi Deepak

    I had joined my company in Nov 2015. They are now closing it down . They already have put me on notice period. And are asking to join their parent company at a very lower salary than I was getting. Now is there I can do about it since I will be joining the parent company at lower position and salary or I will have stay without a job. What will you advice. It’s urgent

  13. Hi. In case of termination how will be leave salary be calculated provided the employee finished his vacation in June 2016 and he was terminated on 18/06/2017

  14. Hi,
    i joined in an organisation before 2 month with the unlimited contract. now the management decided to close the company and they have given the 1 month notice to all employees including me.
    what all the benefits should i get from the company ?

  15. Hi, almost been 6 years in the company from 2011 until now. First contract issued was Unlimited (3 years) from 2011-2014, then second contract issued was limited (3 years) from 2014-2017. Should the gratuity be computed separately as per contract? Please advise.

    • Gratuity will be calculated on the basis of latest contract.
      If it is beneficial to you, please request HR to calculate as per contract types separately.
      However, I do not see much difference.

      • Thanks Deepak for your answer, but if calculation is based on latest contract then I am eligible to received as per computation illustrated on “Resignation with service of more than 5 years of service”. However, my 2nd contract (limited contract) have higher basic salary than my first contract (unlimited contract). So I guessed it should be computed separately?

  16. i just want to know what is the basis for what they say “date joined the company” is it from the very first day he joined the company or when the passport got a visa stamp. My employer is insisting that annual leave shoud be base on the date the passport was stamp for visa.. Please help. Thanks

  17. Hi, what if i will resign before my contract finish, my employer will pay me for my annual ticket, for unlimited contract?

  18. Hi. I am having a problem.. i started working at May 31,2015, and i don want to renew my contract. Last March 2017, my boss told me i will end my contract the same date with my emirates id, so it is written here July 26,2017. So i informed my boss last June 26,2017 that i will not renew my contract. Then he told me i will stop working on August 20,2017. Is my boss correct or no? For me i want to stop working on July 26,2017 as i submitted the letter June 26,2017. Pls help.

  19. You must complain about this to MOL/MOHRE.
    gratuity is the right of every employee. Leave salary must be paid.
    Unless they prove that there has been fraud and MOL has confirmed this, they can not deduction salary.
    Article 120 may be applied if the company is correct.

  20. Hi Deepak, Currently I am on limited contract (2 years) and my contract will finish in next month. Company will renew the next contract as unlimited contract. Please tell me if I will leave the company in 2.5 Years (2 years on unlimited contract and 0.5 years on limited contract), tell how they will calculate the gratuity.

  21. Hello Sir, I have a question if you can please answer.
    i have been terminated by my company without any warning letter or notice period after 1 year and 8 months service (contract was 2 years unlimited), for the following reasons mentioned in termination letter
    1. Discriminatory behavior that drop in work place morale.
    2. for spilling over into the daily work environment that you are no longer working collaboratively with the team.
    3. for not taking care of your job responsibilities as per company policies

    with those reasons mentioned in termination letter, does my company have a right not to give me my end of service/ gratuity , one month notice period salary.

  22. Hello sir i have been working from2012/7/31 from til now in my company and got resing my basic salary is 800 aed how much is my grautiy and my rights please repley

  23. How about the annual leave balance to be paid? based on basic or based on full monthly salary?

    • How about did not take annual leave and the contract is nearly finish this July? How can I get basic or full monthly salary?
      What about the computation of gratuity of limited contract .

      thank you

    • Hi sir! I have been finish my 2 yrs contract i already sign the cancelation of my labour and resedince visa.but until now my boss not giving my gratuity, annual leave and my salary. what will i do? Pls.help me.

  24. Dear Sir,

    I work in uae started Feb. 24, 2015 End by Feb. 23, 2017. I send email Jan. 23, 2017 for non renewal of contract. Then they talk to me Jan. 29, 2017 to inform me that you will stay until end of January 2017 and you can leave because your reliever will come by feb. 1 but you will pay until end of the contract. Then when I see the final computation its only 1 year and 11 months. It is the right computation

      • Hi Deepak,
        I would appreciate if you could tell me what is article no. in labor law that says if employee is terminated after 1 year in unlimited contract, he is entitled for 21days/year till 5 years.
        I found article only for resignation in unlimited contract.
        Thanks in advance!

  25. Sir im working to yass mall boubouffe rstorant.. im join to this company in march 3. 2016 im already 1 year then my manager fooling us they said our restorant they will close soon then he pushing us to sign termination.. after a week we have a general meeting then he said our restorant they will not close.. then who will sign termination he said its goodbye for us.. our contract is 2years my i now if we ganna get our 3 months salary and free ticket and unwall leave.. couse they fire us and fooling us without reason?

  26. Sir I am working in NDC I joined company in 3 apral 1993 if my company terminate me my basic is3514ad my total salary is 6600ad how much many I gat form my company

  27. Hi there I fire from my company work 2 years full and third year not completed full
    Basis salary was 2000aed
    Shall i able to get gratuity and any salary

  28. Hi,
    i am an engineer and i joined consultancy company on 1st march 2015 and this coming 1st march 2017 i will be completing 2 years, my contract is limited contract of 2 years but in my labor card the contract date is different it starts from june 2015 and ends june 2017 but as i completed my two years from my joining date of 1st march 2015, i want to leave the job, if i leave will it be considered as breach of contract or it is safe as i completed 2 years. please tell me whether i will be eligible for gratuity or not and what will be my end of service benefits.

    your responses will be highly appreciated.

    thank you.

    Read more: http://emiratesdiary.com/gratuity-calculator#ixzz4U6l1qsZY
    Follow us: @deepakmachado on Twitter | emiratesdiaryuae on Facebook

  29. dear sir.
    m working on uae now 9 years 2 month I’m joinding 13/10/2007 until now going to visa finisht on 07/12/2016 an my basic salary 1000 dhs so how much I will get gratuity ?

  30. Hello sir, i been working as receptionist for 1 year and 10 months. I do resign already. On my gratuity my deduct losses of cash even this lost from my reliver? Is this allowed? And even pos machine loses they deduct from me. Its not written in my contract or in my offer later even my duties and responsibility.

  31. Dear Sir,
    If an employee under limited contract(2 yrs), resigns after 4 years(completes 2 contracts and now on 3rd contract), is he eligible for gratuity for 4 years in which he completed the service of contract period.

  32. My last working day was 30th sept, 2016 as of the notice period. As i am leaving for job to another country on 24th oct, 2016, i requested them to process it quickly but they are giving some excuses. How much time does it take for the company to give final settlement?Is there anything that i can do to get it fast. Please suggest.
    Thank You

    • They can do within a day but for major corporate entities they take time. There is no such given time limit for the same.But you should not sign any settlement while cancellation of visa until the EOSBs are released.

  33. Hello sir
    I am already more than 6 years in this company limited visa.Now I have 9 months to complete my final contract(total 7 year),do I have to pay if I resign without completing this 9 months.Company is asking for the compensation.

  34. dear Sir,
    I join to one company march 2010. joining time my basic Salary 2750.0 DHS . after 03 year changed my basic to 4000.0 DHS. after 5 year complete again my basic changed to 5000.0 DHS. So how to calculate my gratuity.
    thanks

  35. I am joined a company 29 sept 2015 and my probation finished on 29 jan 2016. i resigned on 15 sept 2016 and serving 30 days notice period now until oct 14. kindly advice me if am eligible for any gratuity.

  36. hello sir can you compute my gratuity, i join my company last november 28, 2014 and my contract finish on nov. 28, 2016. my basic salary is 800dhs. how much gratuity that i get? please email your computation for me thank you so much.

  37. i m working in a company 12/10/2014.
    now i m leaving..
    my basic is 1500.
    how my company will settle my all payments.

  38. hI, i am working uAE , I COMPLETED MY 5 YEARS , MY SALARY IS 7250/. BUT MY BASIC SALARY IN OLD CONTRACT 2000/- . COULD YOU PLEASE ADVISE GRATUITY BASED NEW SALRY OR OLD CONTRACT SALARY

  39. I am working in a company from May, 2007 as General Accountant, my basic salary is 5000 Dirham. Please calculate my gratuity. thank you for cooperation.

    • It will approx. 42500/- but accurate number of days are required for the exact calculation.

  40. Hi

    Is there any gratuity Limit, like maximum years we need to pay or amount?

    If an Employee work for 35 years in a company, how much year we need to pay or any maximum amount limit?

    • No, there is no such limit, EOSB is the right granted under the law. The Employer has to pay for 35 years based upon gratuity calculations.

  41. I am working in oil field since 20-04-2003, my basic salary is 5750, now our company lost the contract, so we have to leave, what would be the gratuity I will get as of today

  42. Hello sir , I have been working here since 2004 , I used to get the gratuity for 6 years with basis salary of AED 1000, but my service still continue & currently my basic salary AED 5,400, so if i resign – shall i claim for only remaining 6 years or i will get 12 years and deducting the received Amount – please explain

  43. Hi Sir,

    I have been working for 11 months in my company. But the company will close and they will end my contract as well. Am I still not be able to get my gratuity?

  44. Am remain with 17 month to end a contract,what is my end of service benefits after termination

  45. Hi my basic salary is 3990 how much I will get the graduaty my working day start at 17-07-2007 till date

  46. Dear sir,I am working in my company last 33 years.MY basic salary now is 4000 dhs.i Joined here 20th feb.1983.How much will get to me for my end of service

  47. Dear sir

    I am working in my company for last 33 years.my joining date is 20th feb.1983. How much will i get my end of services.

  48. Hello sir i have question i join my company october 29,2011 and i allready resignd june 21 2016 then my salry is 3000 so how much the total of my graduity.thank you sir

  49. dear sir,

    i worked in the company for 2 years and six months (feb 24, 2014 – sept 3, 2016). i used my first vacation last feb 1, 2015-mar 2, 2015 and the company pay my leave for 11 months then my second vacation was dec 16, 2015-jan 14, 2016 and they pay me for another 11 months so total of paid annual leave i received was 22 months. then i resigned and my last day will be on sept 3.
    will they pay me the remaining 8 months annual leave accumulated (2.5 days accumulated per month)
    i will appreciate so much your answer.

    thank you

  50. Respected sir
    My basic salary is 1200 but my company not agree to give me gratuaty what I do I already resign letter on 10 of July 2016

  51. Hi sir i am working with a company,after 1year the owner sold it to another person,now I have finished my contract with the new company am entitled to gratuity and end of service compensation.

  52. good morning. sir. i have finish contract with my company. my basic salary is 2500. my joining date 12-06-2012 to 15-07-2016. same date my visa expired. 4 years 1 month 14 days total. how much gratuity company will pay me? thank you

  53. Hello,

    I want to know where is the basis of joining date thru joining date from company? or Labour card ?

    for gratuity purpose.

    Thanks.
    mhai

    • Dear Sir,

      Please tell me how much do i need to pay gratuity for bellow mention person.
      Join Date=01/03/2005
      Ending date = 30/07/2016
      Basic Salary = 750.00

      I was try to follow your tips,but I could not reach proper answer.so please help me.

  54. Dear Sir,

    I need an advice from you my limited contract will end this 02/08/2016 i sent to them an email 19/July/2016 that i am leaving the company after my contract will finished.

    Hence i have received a call from my employer yesterday that i have to stay in the company until they didn’t collect all the files and documents.

    Can you please advice me.

  55. Hi, I’m working from Feb 2013 till date on unlimited contract. My company had given termination (but letter issued to reads as layoff). What will be my end of service benefits?

  56. I have joined in my company on 09 Aug 2010, and resigned on 24 July with notice period of 30 period, so i will be leaving from company by 3rd week of august.

    Since i put paper before completion of 6 years, however in that 30 days of notice period my 6 years will over on 10 august.

    So let me know gratuity will calculated basis 5 year or 6 years calculation?

  57. Hi,

    I’ve been employed in my freezone company under a limited contract for 1 year and 2 months now (my contract is for 3 years). I am thinking of resigning but I’m still confused as to what the consequences are. I have read that if I, the employee, terminate the contract I would be liable to pay half of 3 month’s salary. But previously there’s a case in our company that one of the employees resigned but he did not pay the employer, instead he is given compensation equivalent to his unused leave credits.
    I’ve been looking for specific cases online regarding terminating a limited contract under a freezone company but is unable to find one.
    Could you please help me out in clarifying this case of mine? Thanks in advance.

  58. Please sir,

    I am working in a company for 17 years now.4 months back I submitted my resign letter to my manager and she give a request letter to work three months also to get a right person for my place.so i agreed it and now 4 months will finish in 30 july.My company is ready to give me my gratuity as per my old labour contract which was 700 aed salary .my new labour contract salary is 2500 plus 500 for accommodation and I am getting 4200 salary recently for more than one year.So please help me to find out my actual gratuity and if the company refused what the next step I have to do.

    Best regards,
    Mohamed

  59. Sir i just want to ask regardinv on my final settlement and salary the month before i resigned,they only give it back my cancelled passport and cancellation,is it really required to show my new visa before they wil give that?what if i wil go back to my country or other plans….??

  60. hello,

    i resigned from my company unlimited contract i have work 3 yrs and 6 months they calculated already my Gratuity but they didn’t include repatriation ticket. my question is do i have a repatriation ticket?

  61. Dear Deepak,
    Good Day!!!

    I want to know about my office staff end of salary how.

    Date of joining – 15-05-2012
    Date of End – 18-06-2016
    Basic Salary – 1000 AED

    Ticket Charges…? How much we have to pay for him ( Basically we are paying 1500 aed after completing 2 years…

    I hope for your favorable response

    Thanks and Regards

  62. Hi Deepak,

    One question please: Are there 10 or 11 days of national holidays in UAE?

    I found these in the labor law:

    Article 74 –
    The worker shall be entitled to an official leave with full payment in the following occasions :
    a – New Year’s Day ( Hejir ) – One day .
    b – New Year’s Day ( Gregorian ) – One day .
    c – Eid al Fitr – Two days .
    d – Eid al Adha and Arafat Day – Three days .
    e – Prophet Mohammed Birthday Anniversary – One day .
    f – Isra and Mi’raj – One day .
    g – National Day – One day .

    These are 10 days but everybody is telling me that there is on more day for martyrs that fell lately. Is that correct?

    Thank you and best regards.

    Emporio.

  63. Dear Deepak,

    I have got a termination letter from my company, my contract is a limited contract and have 9 mnths in my company,

    I have been given one month notice mentioning as ”
    my performance level is low and is not to the company’s expected level”,

    Kindly help, im scared that my company will drag me in settlement and visa cancellation if i complaint in MOL,

    Kindly guide me

    • Dont be scared . Go to MOL and ask advise. In fact you are eligible for the following :

      What is the employee entitled to on the termination of his employment contract?

      On the termination of the employment contract, an employee is entitled to the following:

      A notice period, or any amount due in lieu of the notice period in the case of an unlimited contract.
      In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause.
      In the case of a limited contract, compensation equivalent to the period until the end of the contract, or three month’s wages, whichever is shorter.
      Payments equivalent to the balance of unutilised leave or any part thereof.
      Payments for overtime or any balance of wages due and not yet paid.
      End of service gratuity calculated on the duration of the employment.
      Repatriation expenses as per the Law or the employment contact, subject to the employee not being in violation or in breach of either the Law or the employment contract.

  64. Sir.
    I submitted in my resignation letter 25th may 2016 with my last day 30th June 2016 . Would like to know how long it takes the company to clear me out?

  65. Dear,

    Sir.
    I want to know about my end of salary how
    I should take my contract was two years o finished my contract then i did renewal my visa in same company so i want cancel my visa my tatal three years and six month is already finished now i am going to cancel my salary 1200.50 dirhum in my contract after one years they incresed my salry 400 dirhm now my current salary is 1600.50 dhs and my three years and six month finished in this compnay so dear sir i want know how much they should give me end of service

  66. Dear,

    Sir.
    I want to know about my end of salary how
    I should take my contract was two years o finished my contract then i did renewal my visa in same company so i want cancel my visa my tatal three years and six month is already finished now i am going to cancel my salary 1250 dirhum in my contract after one years they incresed my salry 400 dirhm now my current salary is 1650 dhs and my three years and six month finished in this compnay so dear sir i want know how much they should give me end of service

  67. how can i calculate the Leave salary in case of resignation , unlimited contract. one year leave already taken and after that for 5 months what will be the leave salary payment payable in case of resignation ? please help

  68. Dear Sir,
    I was working with my company for 12 years continue and my contract is unlimited and my basic salary is 900 aed only and my current salary is 8500 aed therefore if I resign how much do I get?
    I thanking you in advance

  69. Sir, I am working carpenter , iam working 10 years, my salary 3000 . but my contract old paper 1000 basic. Now not renewed my contract. How can finish my setillment. Please answer. Replay for mail.

  70. On what circumstances are gratuity not recieved…My father was a very hard working man at Boodai trading company…suddenly in the year 2000 he came back to india without recieving the Gratuity and went to the states…now in 2016 can he file for his gratuity with the company after 16 years…if not full atleast a certain amount can be his rights??under what circumstances does an employee doesnt recve its gratuity???

  71. I am working now in more than 5 year limited visa with 1,200 basic what do you think i can get gratuity in my company. and their not giving air ticket but as per in my contract first party will give ticket. but they dont want to give.

    • Dear,
      If you finished 5 years complete, you can get 21 days (from your basic salary) for each year (Eg:- 21* 5 years = 105 Days).
      1200 *12 / 365 = 4,142/- Dhs
      You can complaint against that company for air ticket
      No need to worry for anything (In UAE Labour Court) everything is easy.

  72. Deepak,

    I have work with my company for almost 5 years now. My contract will be finish by August of this year. Do i have to give notification to my employer that i will not renew my contract? Will it be considered termination of my contract or resignation on my part. My contract is Limited.

    Reagrds,

    Jhon

  73. Hi,
    I have done 4 years 8 month in my company & I want to resign my visa is unlimited & my basic salary is 2650 .
    Can you tell me how much I can get gratuati money.
    Thanx.

  74. Dear Sir/Madam
    I just want to know about the rights of ever I want to resign or cancellation… Do i have to pay anything to the company? Or any payment for cancellation? Just more clarification about this matter… Either I want to go back Philippines or looking another job… My reason to decide not to continue my work services… We don’t have comfortable accommodation,no day off, we working from 10am to 11pm. No breaktime…and my last reason is it is very difficult for me to do my duties properly by cutting all kids hair especially they are moving to much…to avoid misunderstandings and mistakes regarding my job services, better I must look another job related to my skills for an old not for the children salon… Please give me advice and help for we which Om new here I need equal rights to bd process.. Thank you if ever contact me 0529645207 Nril

  75. i’m working from 28/06/2005, i want to resign on 7/7/2016
    my total salary is 10,000 and my basic salary is 4350.

    how much will be my benefits.

  76. Hello.
    I am working in a contracting company as receptionist cum secretary. I start working August 4 2014 – April 7 2016. The company will close that’s why they terminate my contract. My basic salary is 2000aed. How much will get?
    Please advise..
    Thank you..

  77. hello sir i’ve been working for 1 year and 7 months in my company and i resign May i please know what is my rights ? and how much my graduity that they give to me
    will i get any pay or something.?thank you sir.

  78. hi sir i join my company september 24 2014,and i leave april 24 2016,how much my grauity? im unlimited contract ,thank you and have a nice day

  79. Dear sir,
    I am working in Facility Management company. My Basic salary is 1700, My joining date 07/06/2013. now am going to cancel my visa next month of may 2016 with unlimited visa, so i want to know about gratuity. how much should i receive? can you help me?

  80. Dear sir
    I’m Clerk and doing job on unlimited contract now I have got good job so I’m entitle for the gratuity I have passed here 7 years and 8 months plz let me know

    Reply

  81. hi sir i resign in my company i worked for 1year and 10 months abu dhabi visa my basic salary is 700 and my full salary is 1500 i just want to know exactly how much will i receive from my company i did not get my annual leave

  82. Dear Sir, if any employee works under sponser visa for 2 years with a basic salary for 2000 for 2 years for the company.

    later he changes the visa in company name and work for 4.2 years with a basic salary for 3000

    How we have to calculate his gratuity 2 years separate +4.2 years seperately?

    Kindly provide me the details

  83. Dear Deepak,

    if employee total working years is 3.4 yrs ( 18-11-2012 to 09-04-2016) and his basic salary AED 2,100.

    why wouldn’t calculate like >13<5 9 days now total days 72 and

    now total Gratuity amount 5,022.50 ?????

    kindly confirm whether the above statement right or wrong….

  84. Sir, I had joined my company on 16.08.2015 and was terminated on 28th February, 2016
    The company has given me a notice period from 01.03.2016 till 31.03.2016.

    What are my rights ?

    Can I get :
    1) Any Gratuity
    2) Annual Leaves

  85. I am in labour supply company for unlimited contract and worked for their client for 600 days(DOJ -July 10, 2016). Company informed me that the client had stopped the service w.e.f Feb 29, 2016 and terminated the service. In this view how the gratuity is calculated? Here, The company terminated the service because of their client. This was applicable all the employees who worked for their client.
    Company calculated that the allowed gratuity only for 12 days. Is this correct as per the UAE labour law?

  86. Dear sir
    I’m engineer and doing job on limited contract now I have got good job so I’m entitle for the graduity I have passed here 2 years and 8 months plz let me know

  87. hello sir I join the company on april1,2014 my visa will finish on April 28,2016.my basic wage is 1500 am I entitled for a gratuity if yes how much will I get.thanks

  88. Hi,
    End of ServiceBenefits
    what happens if an employer transfers its employee’s from one group company to another eg Employer Name remains the same but different branch present ie current visa with “say” DAFZA and employer will cancel and process new visa to “say” JAFZA

    Is their an agreement that the employee can sign that will protect his accumalated end of service benefits under DAFZA to continue under his new visa in JAFZA

    Thanks

  89. Dear Sir, I am working in a company in Abu Dhabi from july 2012, if i resign from here next month how many days of gratuity i will get. I don’t know wheather my visa is limited or unlimited according to UAE rules. If company given me 7 days then what can i do? thanks

  90. i am working 4 year
    fiirst 2 year i am recvid vaction time i am get leave salery
    secound 2016 iam cancel my visa
    i can able to leave salery

  91. Sir
    My date of joining is 19/11/2007
    Basic salary 2000AED
    Now completed 8 years and 3 month
    How much gratuity amount should i receive?
    Plz sir, could you help me

  92. Sir
    My date of joining 19/11/2007
    Basic salary 2000 AED Now i have completed my 8 years and 3 month.
    Plz sir,how much gratuity amount shuld i receve, could you help me?

  93. Hi I have a question to ask about my gratuity…i have worked up to the end of my contract but I wanted to renew with the company I have been working with but unfortunately am terminated for mishandling the money before my renewal and before renewing so am I entitled to gratuity????thanks alot

  94. How is Gratuity Calculated fro case – If employer reduces Basic salary after 10 years of service for e.g basic of AED 12000 pm is reduced to AED 10000. Gratuity will be calculated in this case on which base salary?

  95. Hi sir I’m working an trading company. my Basic salary is 1500 dhs. I serve the company 2 years. (Limited Contract) So how much gratuity & leave salary , I will get. in between i had going vacation for 2 month.
    Thanks

  96. Hi sir I’m working certis security company. Basic salery is 2000 dhs. I serve the company 4 years. So how much gratuity I will get.

  97. Dear Mr Deepak. Thank you very much for this excellent piece. I have one question which I hope you can help to clarify. The article seems to refer only to employees working for companies under the purview of the MOL Does the law apply equally to foreign employees working for any government department or Ministry? Your clarification will be very much appreciated.

  98. Hi Mr. Deepak,
    Is the employer entitled to pay 3 months salary in case he terminates the staffs who completed only 6 months under unlimited contract?

  99. Dear Deepak,

    Thanks for this article.In this article you solve maximum issues which we face in UAE.

  100. Your Illustration:

    Basic salary = AED 10,000 per month
    Joining date = 01-01-2005
    End date = 31-03-2011
    Total number of days worked (31-03-2011-01-01-2005+1)= 1916 days ==Hi Sir, How did you calculate this one
    Total number of years he worked=1916/365= 5.25
    21 days’ Basic salary = 328.76*21= AED 6,904.1
    30 days basic salary=328.76*30= AED 9,863.01
    Wages per day = AED 10,000*12/365= 328.76
    Total gratuity=21*328.76*5=34,520.55+(1,916/365-5)*30*328.76=2,459.00=36,979.5

    Sir can you check our calculation in our office: we have the same formula but the total was different, can you pls. explain to me this one ==Total number of days worked (31-03-2011-01-01-2005+1)= 1916 days because in our calculation the total days work is 2281
    and this one also ::Total gratuity=21*328.76*5=34,520.55+(1,916/365-5)*30*328.76=2,459.00=36,979.5

    Our Calculation:
    4.) Gratuity more than 5years
    Basic Salary 10,000.00
    joining date 01-01-05
    end date 31-03-11
    total nos. of days work 2281.00
    total nos. of years work 6.25
    21 days basic salary 6,904.11
    30 days basic salary 9,863.01
    wages / day 328.77
    Gratuity 43,745.21 (10,000 X 21 X 6.25 /30)

    Your Total Gratuity is 36,979.5 but in our calculation is 43,745.21 can you pls. explain to me briefly so that i know the correct calculation of gratuity for 5 years and onwards. Thank you.

  101. Hello sir i’ve been working for 10 months in my company and got terminated. May i please know what is my rights
    will i get any pay or something.?yhank you sir.

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