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Calculate your end-of-service benefits using official formulas from UAE Labor Law Federal Decree-Law No. 33 of 2021
The UAE gratuity, also known as end-of-service benefits, is a mandatory payment that employers must provide to employees who have completed at least one year of continuous service. The calculation is governed by UAE Labor Law and depends on several factors including contract type, length of service, and reason for termination.
The official formula varies based on your employment duration:
Limited Contract: Full gratuity is paid regardless of who initiates the termination, provided the contract is completed or terminated legally.
Unlimited Contract: If you resign, the gratuity amount depends on your service length:
The Federal Decree-Law No. 33 of 2021 introduced several updates to the UAE Labor Law, including changes to contract types and end-of-service benefits. All calculations on this tool reflect these latest regulations.
Gratuity is paid when an employee leaves the company, whether due to resignation, termination, or contract completion. The payment should be made within 14 days of the employment end date.
No, gratuity must be paid as a lump sum unless there is a written agreement between the employer and employee for alternative arrangements.
Currently, there is no personal income tax in the UAE, so gratuity payments are not subject to taxation. However, always consult with a financial advisor for your specific situation.
Typically, you need your employment contract, salary certificates, resignation or termination letter, and Emirates ID. Your employer's HR department will guide you through the specific requirements.