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Qiwa Gratuity Formula:
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The Qiwa End Of Service Calculation is used to determine the gratuity payment for employees in the UAE based on their basic salary and years of service. This calculation follows the UAE labor law requirements for end-of-service benefits.
The calculator uses the Qiwa gratuity formula:
Where:
Explanation: The formula calculates the end-of-service gratuity by multiplying the basic salary by the service years adjusted by the statutory gratuity factor of 21/30.
Details: Accurate gratuity calculation is essential for ensuring employees receive their rightful end-of-service benefits as mandated by UAE labor law. It helps both employers and employees understand their financial obligations and entitlements.
Tips: Enter the monthly basic salary in AED and the total years of service. Both values must be positive numbers. The calculator will compute the total gratuity amount payable.
Q1: What is the legal basis for the 21/30 factor?
A: The 21/30 factor is derived from UAE labor law which stipulates that employees are entitled to 21 days of basic salary for each year of service for the first 5 years.
Q2: Does this calculation apply to all employment periods?
A: This calculation applies for service periods up to 5 years. For service beyond 5 years, different calculation rules may apply as per UAE labor law.
Q3: Is basic salary the only component considered?
A: Yes, according to UAE labor law, gratuity is calculated based on basic salary only, excluding allowances and bonuses.
Q4: What about partial years of service?
A: Partial years are calculated proportionally. For example, 6 months of service would count as 0.5 years in the calculation.
Q5: Are there different rules for different employment sectors?
A: While the basic calculation remains similar, certain sectors like free zones or specific industries may have variations. Always consult the relevant labor authority for specific cases.