Definitive Guide to Gratuity Calculation!

85 responses

  1. Sonnie boy

    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?


  2. Nazir Sultan

    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


  3. Waslm

    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


  4. zeeshan khan

    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.

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  5. kamal sing rai

    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 ?


  6. Mellanie

    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.


  7. Mohammed Meharoof

    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.


  8. Renuka

    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


  9. Krishna raj

    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.


  10. moideen

    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.


  11. varghese

    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.


  12. jordan lacerna

    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.


  13. sameer ahmed

    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.





  15. Fawad Khan

    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.


  16. Sajan


    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?


  17. thipra veetil ramanathan

    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


  18. Thabrea

    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


  19. Russell

    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?


  20. Aamir

    Dear Shazul Ashraf ,
    As per labor law till date your total gratuity will be AED 30,033


  21. Florida faisal

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


  22. Shazul Ashraf

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


  23. varughese thomas

    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


    • Aamir

      Dear Varughese Thomas ,

      As per UAE labor law your total gratuity will be AED 126,447


  24. varughese thomas

    Dear sir

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


  25. Jerico

    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


  26. brian

    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


  27. Muhammad Yasir

    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


  28. James Anoti

    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.


  29. mohammad hasan

    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


  30. mhai


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

    for gratuity purpose.



    • Nadeesha Upamali

      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 please help me.


  31. Rosemarie Talana

    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.


  32. Kathy

    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?


  33. Dillip Venkat

    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?


  34. Jessica


    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.


  35. Mohammed

    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 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,


  36. Anne labanar

    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….??


  37. zion yianni


    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?


  38. achu

    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


  39. Emporio Bijani

    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.



  40. Mohammed

    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


    • let

      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.


  41. David

    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?


  42. aamir al habib


    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


  43. aamir al habib


    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


  44. M. Haadi

    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


  45. Jalil

    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


  46. Ganesanvillayeram

    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.


  47. Syeda

    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???


  48. Ronelo Gumelit

    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.


    • Nafsi

      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.


  49. Jhon0624


    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.




  50. Imran

    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.


  51. Neil Eugenio Marianeto

    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


  52. riham

    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.


  53. Christine

    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..


  54. kimberly RoseFajilan

    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.


  55. kimberly RoseFajilan

    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


  56. shekhar bansode

    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?


  57. qasim jafri

    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



  58. mary grace

    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


  59. Habib ur Rehman

    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


  60. praveen

    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….


    • praveen

      error correction : 1 to 3 years 63 days and 3 to 5 years 7 days. so total days 72..


  61. Emran Ali

    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


  62. satish

    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?


  63. Muhammad Ehtsham khan

    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


  64. malou

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


  65. AJD

    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



  66. Ajay kumar

    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


  67. kumar

    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


  68. Chhiring

    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


  69. Chhiring

    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?


  70. sheila

    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


  71. PG

    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?


  72. Navneet Kumar

    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.


  73. Durga Bahadur Aryal

    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.


  74. Noor Mohamed

    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.


  75. akash

    i need the other job becuse my selery not good so you have any good job please tel me ok……thanks you


  76. Parbati Nepali

    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?


  77. Rashid Mahmood

    Dear Deepak,

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


  78. Bennie

    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.


  79. Ruviere

    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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