How to calculate gratuity in UAE?

To calculate gratuity in UAE is very simple and easy as according to the UAE labor law all the employees who have completed their contract and the period of work they are entitled to gratuity or in other words benefits given after the job which are according to the type of the contract they has since the beginning and the terms, also other factors which have an effect on the total gratuity are.

  • Total years worked for the company.
  • Their net salary.
  • The reason due to which they are leaving the job.
  • The type of the contract was made at the beginning of the job
How to calculate UAE gratuity pay | Employment – Gulf News

There are mainly 2 types of contracts in UAE fixed or limited which required the employee to stay in the company for a specific time period as per their contract and they are not allowed to resign before that and if they do they pay a certain amount and they lose their employee rights. Unlimited contract is when there is no specified time period mentioned in the contract and the employee has to inform and give the notice period 3 months before them quite.

Gratuity doesn’t include the days taken off from work without pay, it is rather calculated according to the net salary and the most recent drawn wages and other allowances if any provided by the company. In most of the companies in UAE the employee at least have to sever 1 year of time before they get the gratuity from the firm and if the employee have debts the company deducts the amount of debt before proving the gratuity. An employee who has been fired due to any misconduct done then according to the UAE law they are not entitled to any of the  Benefit that are given.

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