Gratuity Calculation in the UAE

In the UAE, calculating gratuities is a crucial HR department task. With the support of our leave management software, providing the proper gratuity payment according to calculations will be easier.

Request A Demo

Get full access without credit card.

MAKE IT EASY

We help to simplify
With Online Gratuity Calculation

Limited or Fixed Term Contract

For each year of service under a short-term contract that is less than 5 years. However, if the employee has been operating for the company for less than a year, they are not eligible for gratuity. On the other hand, for each year of work above 5 years, a worker gets 21 days of income, with a limit of 2 years’ salary.

Unlimited Contract

Knowing who The computation of gratuities for unlimited contracts varies depending on the circumstances and the number of years of service. For instance, if the worker resigns after 1 to 3 years of service, they receive 1/3rd of the 21-day basic wage for every year. However, if the employer terminates them they receive full payment.

Proven
Results.

Companies can automate their HR procedures, provide employees with up-to-date information, and make smarter business decisions.

Industries

Our software aids different industries in enhancing the employee experience while boosting productivity and achieving growth.

FAQ

Discover the perks of HR & Payroll software and how to choose the best one for your business.

Know the employee’s basic salary

Knowing the minimum wage is necessary. This is the base pay for an employee, not including any bonuses, compensation, housing, transportation, or other perks. Gratuity will always be calculated using the employee's base pay.

Calculate the daily wage

You can figure out the daily wage once you have the basic income. The basic income can convert to a daily wage by dividing it by 30 (the average number of days at work in a month). You can now determine the gratuity according to the type of contract and the number of years of service. In this case, you would basically have to multiply each day's compensation by the appropriate number of days if the worker is bound by a short-term or renewable contract.