Can you please show me the formula on how to calculate a gratuity?
I've been working in dubai for 2 years in an unlimited contract and receiving a basic salary of AED 3400.
Could you please tell me how much i will get gratuity at the end of 2nd year if i am resigning from the company.
Thank you very much. I would appreciate your prompt reply.
A. As per the UAE Labour Law, you are entitled to receive gratuity. The law specifies that an employee employed under a contract of unspecified terms resign after a continuous service of not less than a year and not more than three years is entitled to one-third (i.e. seven days) of the end of service gratuity. If the period of continuous service was more than three years and less than five years, he is entitled to two-thirds (14 days) of the gratuity. If the service is more than five years, then from the fifth year onwards, he is entitled to gratuity of 30 days per year, provided that the total gratuity shall not exceed the wages of two years. Therefore, after the completion of your third year in the job, your gratuity shall be calculated 21 days (i.e. your one-day’s salary multiplied by 21) will be your third year’s gratuity. If you resign before the completion of the third year, you are entitled only for seven days gratuity.
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