## Gratuity Calculator UAE

## Gratuity Calculator Dubai

Employees in the UAE get numerous benefits at the end of their service. Gratuity is one of the prominent benefits. It is the payment due on your employer when you leave your job or the term of your service ends. At times, employees are unaware of this benefit. They don’t know the policies regarding gratuity, how to calculate gratuity in UAE, and what factors could impact it. If you are one of them, we are here to guide and assist you.

**Disclaimer**

Our gratuity calculator is not a legal tool. It is there to assist you in understanding and calculating your expected gratuity amount. These gratuity calculations are based on general UAE labor laws and your provided information. So, don`t expect it to be 100 percent accurate. There might be some errors in calculations due to various factors like the compensations availed in your working tenure, specific conditions of your employment agreement, incomplete information, etc.

Gratuity Calculator Dubai is not liable for any errors in gratuity calculations, and these calculations should not be used for legal purposes. We recommend hiring a lawyer for legal proceedings.

## How to Calculate Gratuity in UAE using “Gratuity Calculator UAE”?

Here is an easy step-by-step guide for your gratuity computation:

You won’t need any formulas and intense calculations while computing your gratuity through our gratuity calculator Dubai. It will do the job for you.

This end-of-service gratuity calculator is beneficial only if your working period is more than one year and your termination is a legal one with a good work record.

**Crucial Factors for Calculating Gratuity**

Gratuity calculations using our gratuity calculator are easy. But before calculating your gratuity, you must understand some basic rulings. Multiple factors impact your gratuity calculations:

**Eligibility Criteria:**

**Contract type**

Your contract type also impacts your gratuity calculations.

**Limited Contract Type**

**Unlimited Contract Type**

In the case of unlimited contract type, your gratuity computation is based on your service period and on your end-of-service circumstances.

**In case of Termination:**

**In case of Resignation:**

**Also, remember**

**Understanding Gratuity Calculation Methods in UAE Employment Contracts**

Our gratuity calculator Dubai will cater to your need to estimate your gratuity amount. But if you want to dive deep and know how we can calculate gratuity manually, here are the guidelines for calculating gratuity through formulas.

**Formula of Gratuity Calculation for Limited Contract Type**

If you are on a limited contract, you can calculate your estimated gratuity after completing your service period by this formula.

Basic Salary/30 = Per day salary

For instance, if your basic salary is 9,000 Dirhams,

9,000/30= Dh 300

Per day salary * 21= Per year Gratuity

300*21= Dh 6,300

Per year gratuity * Service years = Gratuity

For 3 year contract,

6300*3= Dh 18,900

For instance, if your service tenure is 7 years,

9000*2= Dh 18,000.

It will be your gratuity for the 6th and 7th year.

Gratuity of first 5 years + Gratuity of 5th year onwards = Total Gratuity

18,900 + 18,000= Dh 36,900

**Formula of Gratuity Calculation for Unlimited Contract Type**

Your gratuity calculations will remain the same in case of termination in unlimited contract type. But if you have resigned from your job, add these steps to the gratuity calculation.

For Dh 9,000 basic salary,

9,000/30= Dh 300

300*21= Dh 6,300

6300* 1/3 = Dh 2100

It is your per-year gratuity.

For instance, for 2 years

2100*2 = Dh 4200

It will be your gratuity amount.

6300* 2/3 = Dh 4,200

It is your per-year gratuity.

For instance, for 4 years:

4200*4 = Dh 16,800

It will be your gratuity amount.

**Common Mistakes and Misconceptions to avoid while calculating gratuity in UAE**

**# 01 Interpretation of Salary**

**Mistake: I will get my gratuity on my total salary.**

Clarification: Your gratuity is according to your basic salary. It excludes all allowances from your salary, like housing allowance, fuel, medical compensation, etc.

**# 02 Calculation of Service Duration**

**Mistake: I will get my gratuity on the approximated duration of service.**

Clarification: Your gratuity should be calculated based on the exact duration of your service tenure. There is no round-off thing when it comes to gratuity calculation.

**# 03 Understanding Contract Type**

**Mistake: I will get the same gratuity per year of service regardless of my contract type.**

Clarification: According to UAE Labor Laws, formulas of gratuity calculations are different for limited and unlimited contract-type jobs.

**# 04 End of Service Benefits:**

**Mistake: Gratuity is the other name for end-of-service benefits.**

Clarification: Your gratuity is just one component of your end-of-service benefit. There might be other benefits as well based on your job agreement.

**# 05 Overgeneralization**

**Mistake: Gratuity is the same for everyone regardless of when they leave the job.**

Clarification: The gratuity amount varies with the tenure of your service. You are not eligible for gratuity if your service period is less than one year.

**Tips to Increase Gratuity**

End-of-service calculators are beneficial for estimating your gratuity and other benefits. These tools enable you to plan your resignation and avail maximum benefits at the end of your service. But like any other tool, these gratuity calculators in UAE are not foolproof. They are bound to make mistakes and errors due to various factors.

It is recommended not to over-emphasize gratuity calculations through tools like Gratuity Calculator Dubai and to consult a professional before making your final move.