The Gratuity Calculator Dubai helps employees estimate their end-of-service benefits. This tool is essential for anyone looking to understand what they are legally entitled to receive upon the termination of their service, based on the laws governed by the UAE Ministry of Human Resources and Emiratisation.
Formula of Gratuity Calculator Dubai
The calculation of gratuity in Dubai follows a specific formula:
For the first 5 years:
- Calculation: Multiply your basic daily wage by 21 (number of days).
For every year exceeding 5 years:
- Calculation: Multiply your basic daily wage by 30 (number of days).
Important Points:
- Daily Rate: This calculation assumes a daily wage, which needs to be multiplied by the number of service days to compute the annual gratuity.
- Salary Cap: The total gratuity cannot exceed two years’ worth of your basic salary, putting a ceiling on the payout.
Table of General Terms
The following table provides a quick reference for commonly used terms and pre-calculated gratuity examples:
| Term | Definition | Example Calculations |
|---|---|---|
| Basic Salary | Salary without allowances. | AED 15,000 |
| Total Years of Service | Complete years worked. | 5 years, 10 years |
| Gratuity for 5 years | Basic Salary x 21 days x 5 | AED 15,000 x 21 x 5 = AED 1,575,000 |
| Gratuity for 10 years | (Basic Salary x 21 days x 5) + (Basic Salary x 30 days x 5) | (AED 15,000 x 21 x 5) + (AED 15,000 x 30 x 5) = AED 3,825,000 |
Example of Gratuity Calculator Dubai
Consider an employee with a basic monthly salary of AED 15,000, who has completed 7 years of service:
- For the first 5 years: AED 15,000 / 30 (days) x 21 (days) x 5 (years) = AED 525,000.
- For the additional 2 years: AED 15,000 / 30 x 30 x 2 = AED 300,000.
- Total Gratuity: AED 525,000 + AED 300,000 = AED 825,000.
Most Common FAQs
The total gratuity is cap at two years’ worth of your basic salary, ensuring no payout exceeds this limit regardless of service length.
Unpaid leave can reduce the basic salary considered for the calculation, potentially decreasing the gratuity payout.
Partial years are prorated base on the number of extra months served beyond complete years, using the daily wage calculation.
