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UAE End of Service Gratuity Formula:
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The UAE End of Service Gratuity is a legal entitlement for employees upon termination of employment in the United Arab Emirates. It is calculated based on the employee's final salary and length of service according to UAE labor law provisions.
The calculator uses the Qiwa portal gratuity formula:
Where:
Explanation: The formula converts monthly salary to daily rate, multiplies by service duration, and applies the legal factor to determine the final gratuity amount.
Details: Accurate gratuity calculation ensures employees receive their legal entitlements and employers comply with UAE labor laws. Proper calculation prevents disputes and ensures fair compensation for service.
Tips: Enter last monthly salary in AED, total days of service, and the appropriate factor (typically 0.7 for 21 days per year). All values must be positive numbers.
Q1: What is the standard factor value?
A: The standard factor is 21/30 (0.7) for employees who have completed one year or more of continuous service.
Q2: How is service duration calculated?
A: Service duration includes all calendar days from employment start date to end date, excluding unpaid leave periods.
Q3: What salary components are included?
A: Basic salary and all fixed allowances are typically included in the last salary calculation for gratuity purposes.
Q4: Are there different factors for different service periods?
A: Yes, factors may vary based on total service years and the reason for termination (resignation vs. termination).
Q5: Is this calculation applicable to all employment types?
A: This calculation follows standard UAE labor law provisions, but specific contract terms or free zone regulations may apply differently.