Qiwa End of Service Gratuity Formula:
From: | To: |
The Qiwa End of Service Gratuity is a statutory benefit payable to employees in the UAE upon termination of employment. It is calculated based on the employee's basic salary and length of service according to UAE labor law.
The calculator uses the Qiwa gratuity formula:
Where:
Explanation: The formula calculates the end-of-service benefit based on UAE labor law provisions, considering both full years and partial service periods.
Details: Accurate gratuity calculation is essential for employers to comply with UAE labor law and for employees to understand their entitled benefits upon employment termination.
Tips: Enter monthly basic salary in AED, total service days, and full years of service. All values must be valid (salary > 0, days > 0, years ≥ 0).
Q1: Who is eligible for end-of-service gratuity?
A: All employees who complete one or more years of continuous service are eligible for gratuity under UAE labor law.
Q2: How is gratuity calculated for partial years?
A: For service periods less than one year, gratuity is calculated proportionally based on the actual days worked.
Q3: What is the difference between limited and unlimited contracts?
A: Gratuity calculation varies between limited (fixed-term) and unlimited contracts, with different calculation methods for each.
Q4: Are there any exceptions to gratuity payment?
A: Employees terminated for gross misconduct may forfeit their gratuity rights under certain circumstances.
Q5: When should gratuity be paid?
A: Gratuity must be paid within 14 days from the date of employment termination according to UAE labor law.