How to Calculate Gratuity in UAE When Basic Salary Changes Over Time

Hi guys! I've been reading threads on this topic, but all seem to focus on India. Can someone explain how to calculate gratuity based on UAE rules when the basic salary changes? For instance, my salary was AED 2500 in January 2008, increased to AED 3500 in January 2009, and is now AED 6500. My contract ends in October 2011. Any help would be appreciated.

To calculate gratuity in the UAE when the basic salary changes over time, you can use the following formula:

1. Calculate the average of the last 12 months' salaries: (AED 2500 + AED 3500 + AED 6500) / 3 = AED 4166.67.
2. Multiply this average by 21 days for each year of service for the first five years: AED 4166.67 * 21 * 5 = AED 437,500.
3. For the remaining years, the calculation is AED 4166.67 * 30 * 3 = AED 375,000.
4. Add the amounts from steps 2 and 3 to get the total gratuity amount: AED 437,500 + AED 375,000 = AED 812,500.

Therefore, based on the given salary changes and contract duration, the gratuity amount would be AED 812,500.