Gratuity Calculator
What is Gratuity Calculator?
Gratuity, also known as end-of-service benefits, is a lump-sum payment that employers in Dubai are required to pay to their employees upon termination of employment. Gratuity is calculated based on the employee’s basic salary and years of service.
Who is entitled to gratuity in Dubai & UAE?
All employees in Dubai who have completed at least one year of service are entitled to gratuity. This includes full-time employees, part-time employees, and contract employees.
How is gratuity calculated in Dubai & UAE?
Calculating your gratuity might seem tricky, but it’s not so hard. It’s based on your monthly salary. Here’s how it works:
- If your contract is unlimited: For the first five years, you get 21 days of your monthly salary, and for every year after, you get 30 days of your monthly salary.
- If your contract is limited: For the first year, you get 21 days of your monthly salary, and for every year after, you get 30 days of your monthly salary.
Your “monthly salary” is not just your basic pay. It includes any extra money like housing allowances or other special payments in your work contract.
An Example:
Let’s make it easier with an example. Say you worked in Dubai for seven years, you got paid AED 10,000 every month, and you had an unlimited contract.
- For the first five years: (10,000 ÷ 30) x 21 x 5 = AED 35,000
- For the next two years: (10,000 ÷ 30) x 30 x 2 = AED 20,000
- Add the two amounts: 35,000 + 20,000 = AED 55,000
So, in this example, you would get AED 55,000 as your gratuity.
Remember: Taxes and Deductions:
Good news! You don’t have to pay any taxes on your gratuity in Dubai. But if you owe money to your employer, they can take it from your gratuity.
How to use a gratuity calculator?
There are a number of gratuity calculators available online, including the Dubai Development Authority’s gratuity calculator. To use a gratuity calculator, simply enter your basic salary and years of service. The calculator will then calculate your gratuity entitlement.
Here are some tips for using a gratuity calculator in Dubai & All Over UAE:
- Make sure to enter your basic salary correctly. This includes your base salary and any other regular allowances that you receive.
- Enter your years of service accurately. Be sure to include any partial years of service.
- If you have worked for multiple employers in Dubai, you will need to calculate your gratuity entitlement for each employer separately.
- Once you have calculated your gratuity entitlement, you can use the gratuity calculator to verify that your employer has calculated your gratuity correctly.
Conclusion
Gratuity is an important benefit that employees in Dubai are entitled to. By using a gratuity calculator, you can easily calculate your gratuity entitlement and ensure that you are receiving the correct amount of gratuity from your employer.
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