UAE Gratuity Calculation Formula Dubai Abu Dhabi

To Calculate Gratuity after end of employee service or termination use following formula based on guideline of labour laws of UAE. For more examples related to both limited and unlimited contract visit:

Formula

1. Per Month Salary ÷ 30 = Per Day Salary
2. Per Day Salary x 21 = 1 year gratuity figure (Or x30 if applicable)
3. 1 year gratuity figure x years in job= Total gratuity owed
Only continue for Unlimited Contract calculation
4. Total gratuity owed ÷ 3 = One third (1/3) of total gratuity
5. Either take this figure or multiply it by two for final figure.

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