Calculating your end-of-service (gratuity) pay is important. Knowing how the total amount is reached volition assist you lot seat whatever errors made yesteryear your company.
“Calculations differ depending on whether you’re on a Limited contract or an Unlimited contract”Share on facebookTweet this
Contract types
A limited or fixed term contract is where the employee agrees to remain amongst the society for a for certain number of years amongst a laid halt date. Resigning earlier the halt of this menses could hateful 1 or all of these; a labour ban, loss of labour rights or fifty-fifty payment of compensation to the employer.
An unlimited contract has no such menses clause or number of years, together with therefore, has no halt date. However, a divulge menses of 1 to iii months is applicable for resultant of contract from either side.
Gratuity pay is calculated based on the most recent salary paid into your occupation concern human relationship without allowances and/or bonuses. Check Article 134 of the Labour Law hither to larn clarification on what this constitutes.
If you lot are terminated from your job, unless you lot pause the rules every bit stated in Article 139 of the Labour Law, the employee is yet entitled to gratuity pay.
Calculations for Limited Contract gratuity pay
Less than 1 twelvemonth of service
Leaving operate earlier completing 1 (1) twelvemonth of service way that you lot are non entitled to whatever gratuity pay.
Between 1 twelvemonth together with five years of service
Employee is entitled to total gratuity pay based on 21 days salary for each twelvemonth of work.
5 or to a greater extent than years of service
Employee is entitled to total gratuity pay based on thirty days salary for each twelvemonth of work.
Calculation example
Basic salary example: Dh10,000
a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh333.30
b. 333.30 x 21 = 6,999.30. So 21-days salary is Dh6,999.30 in gratuity entitlement for each twelvemonth of service. Multiply this figure for every twelvemonth of service upwardly to five years.
Use thirty days calculation for those exceeding five years of service.
c. 333.30 x thirty = Dh9,999. So 30-days salary is Dh9,999 in gratuity entitlement for each twelvemonth of service – then long every bit the total figure does non overstep 2 years total salary figure.
Calculations for Unlimited Contract gratuity pay
Less than 1 twelvemonth of service
Leaving operate earlier completing 1 (1) twelvemonth of service way that you lot are non entitled to whatever gratuity pay.
Between 1 twelvemonth together with 3 years of service
Employee is entitled to 1 tertiary (1/3) of the 21-days gratuity pay.
Between 3 years together with five years of service
Employee is entitled to 2 thirds (2/3) of the 21-days gratuity pay.
5 or to a greater extent than years of service
Employee is entitled to total 21-days gratuity pay.
Calculation example
Basic salary example: Dh10,000
a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh333.30
b. 333.30 x 21 = 6,999.30. So 21-days salary is Dh6,999.30
Of this figure of Dh6,999.30, exclusively 1/3 is payable if you lot get got worked betwixt 1 together with 3 years, then the total gratuity pay would be Dh2,333.10.
Only 2/3 is payable if you lot get got worked betwixt 3 together with five years, then the total gratuity pay would be Dh4,666.20.
The full Dh6,999.30 is payable for each twelvemonth if you lot get got completed five years or more.
These calculations are non to live on treated every bit law, they are for your reference only. For whatever disputes or farther clarification, contact the UAE Ministry of Human Resources together with Emiratisation.
Formula
1. Basic salary ÷ 30 = Daily wage
2. Daily wage x 21 = 1 twelvemonth gratuity figure (Or x30 if applicable)
3. 1 twelvemonth gratuity figure x years of service = Total gratuity owed
Only maintain for Unlimited Contract calculation
4. Total gratuity owed ÷ 3 = One tertiary (1/3) of total gratuity
5. Either get got this figure (between 1 together with 3 years) or multiply it yesteryear 2 (between 3 together with five years)
6. For over five years, total gratuity owed will live on payable.
Calculate your gratuity hither using this formula
Ministry Gratuity Calculator
Source UAE Ministry of Human Resources together with Emiratisation
Call centre For whatever Labour issues, call 800 665
Locate your nearest Ministry of Human Resources together with Emiratisation office
Gulf News is non responsible for any amendments made to the UAE Labour Law. All labour disputes must become through the Ministry of Labour. This article may exclusively live on used every bit a guide.
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