{"id":13364,"date":"2024-01-16T08:13:53","date_gmt":"2024-01-16T04:13:53","guid":{"rendered":"https:\/\/connectresources.ae\/?p=13364"},"modified":"2025-06-04T15:33:13","modified_gmt":"2025-06-04T11:33:13","slug":"how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022","status":"publish","type":"post","link":"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/","title":{"rendered":"Gratuity Calculator UAE : Calculate Gratuity Correct &#038; updated 2024"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #c1121f;color:#c1121f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #c1121f;color:#c1121f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/#1_What_is_the_gratuity_benefit_that_employees_in_the_UAE_can_receive\" >1. What is the gratuity benefit that employees in the UAE can receive?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/#2_How_should_employers_calculate_gratuity_for_employees_working_in_the_UAE\" >2. How should employers calculate gratuity for employees working in the UAE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/#3_What_happens_when_an_employer_refuses_to_pay_end-of-service_gratuity_benefits\" >3. What happens when an employer refuses to pay end-of-service gratuity benefits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/#4_What_happens_in_case_an_unlimited_contract_terminates_before_its_renewal_procedure\" >4. What happens in case an unlimited contract terminates before its renewal procedure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/#5_How_can_you_protect_your_rights_before_leaving_your_job\" >5. How can you protect your rights before leaving your job?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/connectresources.ae\/how-to-calculate-gratuity-in-the-uae-gratuity-calculator-2022\/#6_How_can_Connect_Resources_help_you_calculate_gratuity_and_process_payroll_in_the_UAE\" >6. How can Connect Resources help you calculate gratuity and process payroll in the UAE?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">In the UAE, certain laws and regulations make the country an amazing place to live and work. Among the most important ones, you can find the Labour Law, which entitles employees to a set of benefits. Gratuity payments are among those benefits, and knowing how to calculate them by using a <\/span><b>gratuity calculator<\/b><span style=\"font-weight: 400;\"> is essential for employers and employees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, you will learn everything you need to know about <\/span>UAE gratuity<span style=\"font-weight: 400;\"> and how to calculate it accurately. In this way, you will get correct results when paying your employees in the United Arab Emirates. Or, in case you are an employee, you will be able to know how much you will receive. Let us observe:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> What is the gratuity benefit that employees in the UAE can receive?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How should employers calculate gratuity for employees working in the UAE?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What happens when an employer refuses to pay end-of-service gratuity benefits?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What happens in case an unlimited contract terminates before its renewal procedure?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How can you protect your rights before leaving your job?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How can Connect Resources help you calculate gratuity and process payroll in the UAE?<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"1_What_is_the_gratuity_benefit_that_employees_in_the_UAE_can_receive\"><\/span><strong>1. What is the gratuity benefit that employees in the UAE can receive?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"size-full wp-image-13384 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-payment-uae.jpg\" alt=\"\" width=\"1200\" height=\"628\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-payment-uae.jpg 1200w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-payment-uae-300x157.jpg 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-payment-uae-1024x536.jpg 1024w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In the UAE, the current <a href=\"https:\/\/connectresources.ae\/oman-labour-law\/\" data-wpil-monitor-id=\"1228\">Labour Law has many rules and regulations that benefit employees<\/a> and companies equally. In the case of employees, there is a particular rule that benefits them when their employment contracts are terminated. This is known as <\/span><a href=\"https:\/\/connectresources.ae\/gratuity-calculator-uae\/\"><b>gratuity in the UAE<\/b><\/a><span style=\"font-weight: 400;\">, which is regulated by the same legislation that controls pensions and social security.<\/span><\/p>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27257 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/connectresources.ae\/manpower-in-uae\/\" data-wpil-monitor-id=\"944\">UAE Labour<\/a> Law states that all employees are entitled to receive this monetary benefit once they have finished their employment contracts. There are many types of gratuity benefits that they can receive, depending on their circumstances and whether they are eligible. For instance, employees working in the private sector can receive any of the following provisions upon the termination of their contracts:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unpaid wages or any <\/span><a href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/\"><span style=\"font-weight: 400;\">overtime payments<\/span><\/a><span style=\"font-weight: 400;\"> due.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encashment of leaves that they did not use.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repatriation of expenses applicable as per the Labour Law and the employment contract for end-of-service benefits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">End-of-service gratuity benefits.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can also find some additional benefits that employees in the UAE can get in case of unfair dismissal. For example, if they are eligible and meet the criteria, they can get <\/span><a href=\"https:\/\/connectresources.ae\/what-is-employee-compensation-definition-types\/\"><span style=\"font-weight: 400;\">compensation<\/span><\/a><span style=\"font-weight: 400;\"> for up to 3 months\u2019 salary. In the case of limited contracts, the compensation amount must not exceed the total 3-month remuneration or the amount due for the remaining contractual period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, it is important to know that the calculation of the <\/span>UAE gratuity depends on a number of relevant factors. For example, the type of contract, basic salary<span style=\"font-weight: 400;\">, and the total number of years served in the company are some of them. Furthermore, the reason for the termination of the employment contract is another element that must be taken into account when using a <\/span><b>gratuity calculator in the UAE<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<section class=\"l-section wpb_row us_custom_c9f14037 shoort_colr hide_on_default hide_on_laptops hide_on_tablets height_auto\">\n<div class=\"l-section-h i-cf\">\n<div class=\"g-cols vc_row via_flex valign_top type_default stacking_default\">\n<div class=\"vc_col-sm-12 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"g-cols wpb_row us_custom_adadfab6 via_flex valign_top type_default stacking_default\">\n<div class=\"vc_col-sm-2 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\"><\/div>\n<\/div>\n<\/div>\n<div class=\"vc_col-sm-8 wpb_column vc_column_container shortcode_pr has_bg_color\">\n<div class=\"vc_column-inner us_custom_61df8e5b\">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column us_custom_f05631e6 has_text_color\">\n<div class=\"wpb_wrapper\">\n<p style=\"margin: 0 0 0rem; text-align: center; font-size: 20px;\">Schedule a <strong><span style=\"color: #1b997a;\">Consultation Call<\/span><\/strong> with our expert<\/p>\n<p style=\"text-align: center; font-size: 14px;\">Let our experts help you find the Best Solution in Middle East<\/p>\n<\/div>\n<\/div>\n<div class=\"w-btn-wrapper align_center\"><a class=\"w-btn us-btn-style_5 us_custom_2fc2a597\" href=\"https:\/\/connectgroup2.pipedrive.com\/scheduler\/wODjrKiE\/meeting-with-liam-doherty\" target=\"_blank\" rel=\"noopener\"><span class=\"w-btn-label\">Schedule a call<\/span><\/a><\/div>\n<div class=\"wpb_text_column us_custom_f05631e6 has_text_color\">\n<div class=\"wpb_wrapper\">\n<p style=\"font-size: 20px;\">Get <strong>started today<\/strong><\/p>\n<\/div>\n<\/div>\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f6391-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"6391\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/wp-json\/wp\/v2\/posts\/13364#wpcf7-f6391-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"6391\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.1\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f6391-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<div class=\"col-lg-6 col-md-6 col-sm-6 col-xs-12\">\n\t<div class=\"form-group\">\n\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Full Name\" value=\"\" type=\"text\" name=\"your-name\" \/><\/span>\n\t\t<\/p>\n\t<\/div>\n<\/div>\n<div class=\"col-lg-6 col-md-6 col-sm-6 col-xs-12 abc\">\n\t<div tabindex=\"1\" class=\"clicker\">\n\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span>\n\t\t<\/p>\n\t<\/div>\n<\/div>\n<div id=\"explore_platform1\" class=\"col-lg-6 col-md-6 col-sm-6 col-xs-12 abc\">\n\t<div class=\"form-group\">\n\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"phonetext-257\"><input size=\"40\" class=\"wpcf7-form-control wpcf7-phonetext wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-phonetext form-control\" data-numberonly=\"true\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your phone number\" value=\"\" type=\"text\" name=\"phonetext-257\" \/><input type=\"hidden\" name=\"phonetext-257-country-code\" class=\"wpcf7-phonetext-country-code\" \/><\/span>\n\t\t<\/p>\n\t<\/div>\n<\/div>\n<div class=\"col-lg-12 col-xl-12 col-md-12 col-sm-12 col-xs-12\" id=\"transaction_hide\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"countrytext-787\"><input size=\"40\" class=\"wpcf7-form-control wpcf7-countrytext wpcf7-text wpcf7-validates-as-countrytext\" aria-invalid=\"false\" placeholder=\"Select the Country\" value=\"\" type=\"text\" name=\"countrytext-787\" \/><\/span>\n\t<\/p>\n<\/div>\n<div class=\"gclid_tag\" id=\"transaction_hide\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"gclid\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"testgclid\" aria-invalid=\"false\" placeholder=\"No Tag\" name=\"gclid\"><\/textarea><\/span>\n\t<\/p>\n<\/div>\n<div style=\"display:none;\" class=\"gclid_tag\" id=\"transaction_hide\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"initial_url\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"initial_url\" aria-invalid=\"false\" placeholder=\"No URL\" name=\"initial_url\"><\/textarea><\/span>\n\t<\/p>\n<\/div>\n<div id=\"explore_platform5\" class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n\t<div class=\"form-group\">\n\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"70\" rows=\"7\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"How can we assist you?\" name=\"your-message\"><\/textarea><\/span>\n\t\t<\/p>\n\t<\/div>\n<\/div>\n<div class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n\t<div class=\"buttons-area\">\n\t\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner btn n-btn-flat btn-mid btn-block\" type=\"submit\" value=\"Submit\" \/>\n\t\t<\/p>\n\t<\/div>\n<\/div><input type='hidden' class='wpcf7-pum' value='{\"closepopup\":false,\"closedelay\":0,\"openpopup\":false,\"openpopup_id\":0}' \/><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"vc_col-sm-2 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\n<h3><strong>1.1. What types of employment contracts are important for calculating gratuity?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In the UAE, you can find two types of contracts; a fixed or limited term and an unlimited contract. Each of these employment contracts has different terms and conditions, so it is essential to know each of their concepts. When calculating gratuity after these contracts terminate, you should use a <\/span>gratuity calculator to get accurate results.<\/p>\n<p><span style=\"font-weight: 400;\">In the case of the limited contract, you should know that employees agree to stay working for the set date and number of years. Furthermore, it is also important to keep in mind that there are consequences for resigning before the end of that period. For example, it can lead to a labour ban, loss of labour rights, or payment of compensation to the employer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, an <\/span><a href=\"https:\/\/connectresources.ae\/new-uae-labour-law-explained-what-happens-after-an-unlimited-work-contract-is-terminated\/\"><span style=\"font-weight: 400;\">unlimited contract<\/span><\/a><span style=\"font-weight: 400;\"> has no number of years and no end date either. In this case, it is a requirement to include 1 to 3 months of <\/span><span style=\"font-weight: 400;\">notice period<\/span><span style=\"font-weight: 400;\"> before contract termination.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For each of the previously mentioned contracts, there is a method to calculate gratuity. But first, you should be aware of the rules stated in the Labour Law. Therefore, we recommend that you download the <\/span><b><a href=\"https:\/\/connectresources.ae\/new-uae-labour-law-explained-what-happens-after-an-unlimited-work-contract-is-terminated\/\">UAE new Labour Law<\/a> in 2022 in PDF <\/b><strong>format<\/strong> <span style=\"font-weight: 400;\">and read it before using a <\/span>gratuity calculator.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_How_should_employers_calculate_gratuity_for_employees_working_in_the_UAE\"><\/span><strong>2. How should employers calculate gratuity for employees working in the UAE?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"size-full wp-image-13385 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-uae.jpg\" alt=\"\" width=\"1146\" height=\"645\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-uae.jpg 1146w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-uae-300x169.jpg 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-uae-1024x576.jpg 1024w\" sizes=\"(max-width: 1146px) 100vw, 1146px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">It is vital that all employers know the importance of the end-of-service gratuity pay among the benefits that employees receive. Therefore, using an effective <\/span>UAE gratuity calculator is imperative when calculating this important monetary <a href=\"https:\/\/connectresources.ae\/guides\/what-are-the-compensation-law-and-benefits-in-the-uae\/\">compensation for employees<\/a><span style=\"font-weight: 400;\"> in the country. Additionally, as we mentioned before, it is crucial to take into account the type of contract and other key elements.<\/span><\/p>\n<h3><strong>2.1. How should you calculate gratuity for an unlimited contract?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In this case, you must consider the duration of your service. More precisely, there are four scenarios that are used to calculate gratuity with an <\/span>end-of-service calculator in the UAE:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Less than 1 year of service:<\/strong> In this first case, employees who resign before completing one year of service are not entitled to any gratuity pay or final settlement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Between 1 and 3 years of service:<\/strong> In this case, employees receive one-third (1\/3) of the 21 days\u2019 gratuity pay.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Between 3 and 5 years of service:<\/strong> Employees can receive two-thirds (2\/3) of the 21 days\u2019 gratuity pay.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>5 years of service or more:<\/strong> If employees have served the company for 5 or more years, they are entitled to the full 21 days\u2019 gratuity pay.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27238 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Let us see a numerical example where <\/span><span style=\"font-weight: 400;\">the salary of an employee<\/span><span style=\"font-weight: 400;\"> is AED 10,000. When<strong> calculating UAE gratuity<\/strong>, you must follow these steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify the employee\u2019s daily wage, which is AED 333.30 (10,000\/30 = 333.30).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiply it by 21 to identify the employee\u2019s 21 days\u2019 salary, which will be AED 6,999.30 (333.30 <\/span><span style=\"font-weight: 400;\">\u00d7 21 = <\/span><span style=\"font-weight: 400;\">6,999.30).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">From this number, you can get the 1\/3 (1-3 years) or the 2\/3 (3-5 years) to get the total gratuity pay, depending on the years of service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In case the employee has worked for 5 or more years, the total amount of gratuity pay that he\/she will receive is AED 6,999.30 for each year.<\/span><\/li>\n<\/ul>\n<h3><strong>2.2. How should you calculate gratuity for a limited contract?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In this case, the process is similar, and remember that using a gratuity calculator in <a href=\"https:\/\/connectresources.ae\/apply-for-freelance-visa-in-dubai-2023\/\" data-wpil-monitor-id=\"1510\">Dubai or the UAE<\/a> is recommendable. We will now take a look at the following scenarios for calculating gratuity upon the termination of a limited <\/span><span style=\"font-weight: 400;\">contract<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Less than 1 year of service:<\/strong> Just like in the previous case, employees who resign before completing one year of services are not entitled to any gratuity pay or final settlement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Between 1 and 5 years of service:<\/strong> In this second scenario, employees are entitled to full gratuity based on their 21 days\u2019 salary.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>5 years of service or more:<\/strong> In this last case, employees receive full gratuity pay too. However, this time, gratuity pay is based on their 30 days\u2019 salary. Plus, they receive this pay for every year of work.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is easier to understand it by looking at an example, and we will use the same example as before (basic salary: AED 10,000). An accurate <\/span>Dubai gratuity calculator<span style=\"font-weight: 400;\"> follows these steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify the employees daily wage (AED 10,000\/30 = AED 333.30).<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiply it by 21 or 30, depending on the situation (AED 333.30 <\/span><span style=\"font-weight: 400;\">\u00d7 21 = AED <\/span><span style=\"font-weight: 400;\">6,999.30).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In case an employee has served for more than 5 years, their gratuity pay for each year is acceptable. However, the total amount should not exceed 2 years\u2019 total salary figure.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In case you desire to get more information about this process, make sure to make inquiries to the pertinent authorities. It can be the <\/span>MOHRE in Dubai or an agency that specializes in payroll and employee benefits. Keep in mind that the <strong>MOHRE in the UAE<\/strong><span style=\"font-weight: 400;\"> does not directly manage gratuity regulations but the Pensions Authority.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_What_happens_when_an_employer_refuses_to_pay_end-of-service_gratuity_benefits\"><\/span><strong>3. What happens when an employer refuses to pay end-of-service gratuity benefits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The most recent <\/span><a href=\"https:\/\/connectresources.ae\/what-you-must-know-about-the-uaes-new-labor-law\/\"><span style=\"font-weight: 400;\">UAE Labour Law<\/span><\/a><span style=\"font-weight: 400;\"> specifies the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employers must pay end-of-service benefits to employees within 14 days of the termination of the contract.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employers cannot terminate employees\u2019 contracts without paying <\/span><a href=\"https:\/\/connectresources.ae\/the-new-end-of-service-savings-scheme-for-ex-pats-in-dubai\/\"><span style=\"font-weight: 400;\">end-of-service benefits<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the event of the death of an employee, the employer must pay the gratuity entitlements to the deceased\u2019s family.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employers must not reduce or deduct the gratuity amount based on an employee\u2019s contract type or resignation date unless the law grants it.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In case an employer refuses to pay <\/span><b>gratuity in the UAE<\/b><span style=\"font-weight: 400;\">, employees can file an immediate complaint at the Labour Office. Then, they can pursue legal procedures in a Labour Court. You can follow this advice for similar cases, like the ones regarding <\/span>leave salary calculation in the UAE<span style=\"font-weight: 400;\"> and others.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_What_happens_in_case_an_unlimited_contract_terminates_before_its_renewal_procedure\"><\/span><strong>4. What happens in case an unlimited contract terminates before its renewal procedure?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">new UAE Labour Law<\/span><span style=\"font-weight: 400;\"> states that all unlimited contracts must be converted into limited contracts. These will have a validity of up to 3 years. However, in case an unlimited employment contract is terminated before it is converted into a limited one, the employer must use an <\/span><b>end-of-service calculator<\/b><span style=\"font-weight: 400;\">. With it, they will calculate gratuity as per the previous law (if eligible).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When we refer to the old Labour Law, employers must calculate gratuity payment by following the previous guidelines. These proceedings can vary depending on whether the contract is terminated by the employee or the employer.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_How_can_you_protect_your_rights_before_leaving_your_job\"><\/span><strong>5. How can you protect your rights before leaving your job?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before taking the case to a <strong>Labour Court<\/strong> for a dispute resolution of your <\/span><a href=\"https:\/\/connectresources.ae\/everything-about-employee-benefits-in-the-uae\/\"><span style=\"font-weight: 400;\">benefits<\/span><\/a><span style=\"font-weight: 400;\">, you must gather evidence that supports your position. For example, you can maintain an employment diary that dates and records significant events. These events can be salary bumps or slashes, performance reviews, reprimands, commendations, and informal remarks by your employer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can note every event with all details (time, date, location, witnesses, etc.) and keep track of written material. For instance, these include emails, memos, evaluations, and more. Additionally, using a <\/span>gratuity calculator in Abu Dhabi or in any other location in the UAE can be useful too.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_How_can_Connect_Resources_help_you_calculate_gratuity_and_process_payroll_in_the_UAE\"><\/span><strong>6. How can Connect Resources help you calculate gratuity and process payroll in the UAE?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Calculating the end-of-service gratuity benefits of UAE employees correctly is something that requires you to have knowledge in many aspects as en employer. <\/span><a href=\"https:\/\/connectresources.ae\/about-us\/\">Connect Resources<\/a><span style=\"font-weight: 400;\"> can offer you with the guidance and information you need to get accurate results without wasting time. In fact, if you are an employer or business owner, we can help you run your payroll efficiently and flawlessly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our specialists will provide you with the most effective <\/span><a href=\"https:\/\/connectresources.ae\/payroll\/\"><span style=\"font-weight: 400;\">payroll outsourcing services<\/span><\/a><span style=\"font-weight: 400;\"> to ensure accuracy and compliance with UAE laws. In addition, we help you manage all payroll elements, including employee benefits, payslips, overtime, bonuses, and many other details.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Are you interested in getting payroll services to increase your company\u2019s efficiency? <\/span><a href=\"https:\/\/connectresources.ae\/contact\/\"><span style=\"font-weight: 400;\">Contact us<\/span><\/a><span style=\"font-weight: 400;\"> now to get more information about our solutions. If you run a business in any of the following countries, feel free to request any of <a href=\"https:\/\/connectresources.ae\/hr-services\/\">our services<\/a>:<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/united-arab-emirates\/\">United Arab Emirates<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/bahrain\/\">Bahrain<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/kuwait\/\">Kuwait<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/saudi-arabia\/\">Saudi Arabia<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/lebanon\/\">Lebanon<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/jordan\/\">Jordan<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/egypt\/\">Egypt<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/qatar\/\">Qatar<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/oman\/\">Oman<\/a><br \/>\n<img decoding=\"async\" class=\"size-full wp-image-11621 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color.png\" alt=\"\" width=\"1239\" height=\"387\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color.png 1239w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color-300x94.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color-1024x320.png 1024w\" sizes=\"(max-width: 1239px) 100vw, 1239px\" \/><\/li>\n<\/ul>\n<p><b>Would you like to receive more information about the process to calculate gratuity in the UAE?<\/b><span style=\"font-weight: 400;\"> In that case, get in touch with our team to receive full guidance on this matter and every detail related to it. In case you desire to talk to one of our payroll specialists directly, make sure to call us at <\/span><b>+971 43 316 688<\/b><span style=\"font-weight: 400;\">. In addition, you can also send us an email at <\/span><a href=\"mailto:contact@connectresources.ae\"><b>contact@connectresources.ae<\/b><\/a><span style=\"font-weight: 400;\"> to get more information and tips.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Have you been looking for job opportunities in Dubai that match your skills and experience? Quit wasting time and visit the best job platform in the Middle East to quickly find the most suitable job offers. <\/span><a href=\"http:\/\/thetalentpoint.com\" target=\"_blank\" rel=\"noopener\"><b>thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\"> will allow you to explore a variety of job opportunities, and in the meantime, you can send an email at <\/span><a href=\"mailto:contact@thetalentpoint.com\"><b>contact@thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\"> with your job application, which will be reviewed by the best recruitment specialists.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the UAE, certain laws and regulations make the country an amazing place to live and work. Among the most important ones, you can find the Labour Law, which entitles employees to a set of benefits. Gratuity payments are among those benefits, and knowing how to calculate them by using a gratuity calculator is essential&#8230;<\/p>\n","protected":false},"author":115408,"featured_media":13383,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2002],"tags":[],"table_tags":[],"class_list":["post-13364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employer-of-record"],"acf":[],"_links":{"self":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/13364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/users\/115408"}],"replies":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/comments?post=13364"}],"version-history":[{"count":15,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/13364\/revisions"}],"predecessor-version":[{"id":51724,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/13364\/revisions\/51724"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media\/13383"}],"wp:attachment":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media?parent=13364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/categories?post=13364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/tags?post=13364"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/table_tags?post=13364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}