A gratuity calculator in the UAE is an online tool that helps employees calculate their end-of-service benefits or gratuity entitlement based on their length of service with their employer and their basic salary. The gratuity is a lump sum payment that is paid to an employee by their employer as a reward for their service when they leave the company.
The calculation of gratuity in the UAE is based on the provisions of the UAE Labour Law. The gratuity calculator takes into account the number of years an employee has worked with their employer and their basic salary to determine the amount of gratuity they are entitled to.
Gratuity calculators are commonly available online for free, and they can be a helpful resource for employees who want to estimate their gratuity entitlement before leaving their current employment. However, it's important to note that these calculators may not always provide accurate results as the calculation of gratuity can be affected by other factors such as allowances, bonuses, and the terms of an employee's employment contract. It's always recommended to consult with a legal expert or the HR department of your company for accurate calculations.
The gratuity amount depends on the employee's salary and the length of service with the employer. Here is the formula used to calculate the gratuity in the UAE:
Gratuity = (Basic Salary ÷ 30) x 21 days of service for the first 5 years + (Basic Salary ÷ 30) x 30 days of service for every additional year of service
Here's an example to help you understand:
Let's say the employee's basic salary is AED 5,000 and they have worked for their employer for 8 years.
Gratuity = (5,000 ÷ 30) x 21 days x 5 years + (5,000 ÷ 30) x 30 days x 3 years Gratuity = (166.67 x 21 x 5) + (166.67 x 30 x 3) Gratuity = 17,500 + 15,000 Gratuity = AED 32,500
Therefore, the employee is entitled to receive AED 32,500 as gratuity.
Note that this calculation is based on the UAE Labour Law and assumes that the employee has completed their contract or resigned after serving the notice period. It's always recommended to consult with a legal expert or the HR department of your company for accurate calculations.
The calculation of gratuity in the UAE is based on the provisions of the UAE Labour Law. The gratuity calculator takes into account the number of years an employee has worked with their employer and their basic salary to determine the amount of gratuity they are entitled to.
Gratuity calculators are commonly available online for free, and they can be a helpful resource for employees who want to estimate their gratuity entitlement before leaving their current employment. However, it's important to note that these calculators may not always provide accurate results as the calculation of gratuity can be affected by other factors such as allowances, bonuses, and the terms of an employee's employment contract. It's always recommended to consult with a legal expert or the HR department of your company for accurate calculations.
The gratuity amount depends on the employee's salary and the length of service with the employer. Here is the formula used to calculate the gratuity in the UAE:
Gratuity = (Basic Salary ÷ 30) x 21 days of service for the first 5 years + (Basic Salary ÷ 30) x 30 days of service for every additional year of service
Here's an example to help you understand:
Let's say the employee's basic salary is AED 5,000 and they have worked for their employer for 8 years.
Gratuity = (5,000 ÷ 30) x 21 days x 5 years + (5,000 ÷ 30) x 30 days x 3 years Gratuity = (166.67 x 21 x 5) + (166.67 x 30 x 3) Gratuity = 17,500 + 15,000 Gratuity = AED 32,500
Therefore, the employee is entitled to receive AED 32,500 as gratuity.
Note that this calculation is based on the UAE Labour Law and assumes that the employee has completed their contract or resigned after serving the notice period. It's always recommended to consult with a legal expert or the HR department of your company for accurate calculations.