Gratuity Calculator Abu Dhabi: How to Calculate Your End-of-Service Benefits
If you are working in Abu Dhabi, understanding your gratuity entitlement is essential. The gratuity payment, also known as end-of-service benefits (EoSB), is a lump sum amount paid by the employer to employees who have completed at least one year of continuous service. This payment is regulated under the UAE Labour Law, ensuring that employees receive fair compensation when they leave a job.
To make the process easier, a Gratuity Calculator Abu Dhabi can help you estimate your gratuity amount quickly. In this guide, we’ll walk you through how gratuity is calculated, the factors that influence it, and how you can use an online gratuity calculator.gratuity calculator abu dhabi
What is Gratuity in Abu Dhabi?
Gratuity is a financial reward given to employees as a token of appreciation for their service. It applies to employees working under limited or unlimited contracts, and the calculation depends on the duration of service and basic salary.
The gratuity amount is based on the basic salary only, excluding allowances such as housing, transport, and other benefits.
Gratuity Calculation Formula in Abu Dhabi
Gratuity is calculated based on the number of years an employee has worked and whether they resigned or were terminated. The formula differs for limited and unlimited contracts.
1. Gratuity Calculation for a Limited Contract
A limited contract has a fixed duration, and gratuity is paid if the employee completes the contract period.
- Less than 1 year of service → No gratuity is paid.
- 1 to 5 years of service → 21 days' basic salary per year.
- More than 5 years of service → 21 days' basic salary per year for the first 5 years, then 30 days' basic salary for each additional year.
Formula:
📌 (Basic Salary ÷ 30) × 21 × Number of Years (for the first 5 years)
📌 (Basic Salary ÷ 30) × 30 × Number of Additional Years (if more than 5 years)
2. Gratuity Calculation for an Unlimited Contract
For an unlimited contract, the gratuity depends on whether the employee resigned or was terminated.
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If terminated:
- 1 to 5 years of service → 21 days' basic salary per year.
- More than 5 years of service → 21 days' salary per year for the first 5 years, then 30 days' salary for additional years.
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If resigned voluntarily:
- Less than 1 year → No gratuity.
- 1 to 3 years → 1/3 of the total gratuity.
- 3 to 5 years → 2/3 of the total gratuity.
- More than 5 years → Full gratuity amount.
Formula:
📌 (Basic Salary ÷ 30) × 21 × Years of Service (for the first 5 years)
📌 (Basic Salary ÷ 30) × 30 × Additional Years (if applicable)
📌 If resigned, apply the reduction percentages (1/3 or 2/3).
How to Use a Gratuity Calculator Abu Dhabi
Using an online gratuity calculator saves time and provides an accurate estimate of your end-of-service benefits. Here’s how you can use it:
- Enter Your Basic Salary – Input your last drawn basic salary (excluding allowances).
- Select Your Contract Type – Choose between limited or unlimited.
- Enter Your Start and End Date – Input your date of joining and your last working day.
- Select Your Resignation/Termination Status – Choose whether you resigned or were terminated.
- Click Calculate – The calculator will instantly show your estimated gratuity amount.
Many gratuity calculators are available online, including on government websites and HR portals.
Factors That Affect Gratuity Calculation
Several factors influence the gratuity amount:
✅ Basic Salary – Only the basic salary is considered, not total earnings.
✅ Contract Type – Limited and unlimited contracts have different rules.
✅ Years of Service – More years lead to higher gratuity.
✅ Reason for Leaving – Resignation reduces the gratuity amount.
✅ Deductions & Legal Liabilities – Any pending loans or legal deductions may be subtracted.
Final Thoughts
Understanding your gratuity entitlement is essential before leaving a job in Abu Dhabi. Whether you are planning a career move or facing termination, using a Gratuity Calculator Abu Dhabi helps you plan financially for the future.
Are you looking for a reliable gratuity calculator? Check out official UAE government portals or HR service websites to calculate your end-of-service benefits today!
Would you like me to add specific details, such as links to gratuity calculators or legal references? 😊
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