UAE Gratuity Calculator
Gratuity Amount:
- Q: What is gratuity pay in the UAE?
- A: Gratuity pay is a lump-sum payment an employee is entitled to upon completion of their employment contract in the UAE, provided they meet certain criteria. It's essentially a reward for their service.
- Q: Who is eligible for gratuity pay?
- A: Generally, employees who have completed at least one year of continuous service with an employer are eligible for gratuity. Eligibility can also depend on the type of contract (limited or unlimited) and the reason for leaving employment.
- Q: What are the different types of employment contracts in the UAE, and how do they affect gratuity?
- A: There are two main types:
- Limited Term Contract: A contract with a fixed duration. Gratuity rules are often clearer in these contracts.
- Unlimited Term Contract: A contract with no fixed end date. Gratuity eligibility and calculation can be more complex, especially regarding resignation.
- A: There are two main types:
- Q: How is gratuity calculated in the UAE?
- A: The calculation depends on several factors, including the type of contract, length of service, and the employee's last drawn basic salary. It's typically calculated based on a certain number of days' salary for each year of service.
- Q: What is the difference between limited and unlimited contracts regarding gratuity?
- A: With a limited contract, the gratuity is usually clearly defined in the contract itself. With an unlimited contract, the rules are more complex and depend on the reason for leaving (resignation vs. termination).
- Q: What happens to my gratuity if I resign from an unlimited contract?
- A: If you resign from an unlimited contract, your gratuity entitlement depends on your length of service:
- 1-3 years: You may be entitled to a portion of the gratuity.
- 3-5 years: You may be entitled to a larger portion of the gratuity.
- 5+ years: You may be entitled to the full gratuity as per the UAE Labour Law.
- A: If you resign from an unlimited contract, your gratuity entitlement depends on your length of service:
- Q: What happens to my gratuity if my employer terminates my unlimited contract?
- A: If your employer terminates your unlimited contract (and it's not due to gross misconduct), you are typically entitled to the full gratuity as per the law, regardless of your length of service (provided it's more than one year).
- Q: What salary is used to calculate gratuity?
- A: Gratuity is usually calculated based on the employee's last drawn basic salary. Allowances and other benefits are typically not included.
- Q: Are there any deductions from gratuity pay?
- A: Deductions can be made for things like outstanding loans or damages caused by the employee. However, these must be justified and in accordance with the law.
- Q: When is gratuity pay due to be paid?
- A: Gratuity pay is usually due upon the completion of the employment contract or termination of the employment, after all dues are settled.
- Q: What is the maximum gratuity pay I can receive?
- A: The maximum gratuity pay is typically capped at two years' salary.
- Q: How can I use a gratuity calculator?
- A: A gratuity calculator is a tool that helps you estimate your gratuity pay. You'll usually need to input information like your basic salary, length of service, and contract type.
- Q: Where can I find a reliable gratuity calculator?
- A: Several online gratuity calculators are available. Be sure to use one from a reputable source, but remember that the results are estimates, and you should always confirm with HR or a legal professional.
- Q: Is gratuity pay taxable?
- A: Gratuity payments are generally not taxable in the UAE.
- Q: What happens to my gratuity if I die while employed?
- A: In the unfortunate event of an employee's death, the gratuity payment is typically paid to their beneficiaries or legal heirs.