HOW IT WORKS

How the calculator works

Enter three details and the gratuity updates instantly. Here is exactly what each field means and the formula working behind it — nothing hidden.

How it works

Your gratuity in three steps

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Basic salary plus your joining and last working dates.

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The gratuity and breakdown recalculate as you type.

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What each field means

Basic monthly salary — the basic wage on your contract, before housing, transport or other allowances. Gratuity is calculated on this figure alone.
Joining date — your first official working day, used to measure total continuous service.
Last working day — the final day of the contract. Service is counted inclusively up to this date.
Contract type — full-time, or part-time where the benefit is pro-rated by your contracted weekly hours out of 48.
Reason for leaving — resignation, termination and contract expiry are treated equally; dismissal for gross misconduct is flagged separately.
Unpaid leave days — any unpaid leave is deducted from the service period, because it does not count toward gratuity.

The exact formula

Your daily wage is the basic monthly salary divided by 30. You earn 21 days of that daily wage for each of the first five years of service, and 30 days for every year after that. Partial years are counted proportionally, and the total can never exceed two years of pay.

Formula used: (min(Y,5)×21 + max(Y−5,0)×30) × (basic ÷ 30)

Worked example — 6.5 years at AED 10,000

Basic monthly salaryAED 10,000

Daily wage (10,000 ÷ 30)AED 333.33

First 5 years — 5 × 21 = 105 daysAED 35,000

Next 1.5 years — 1.5 × 30 = 45 daysAED 15,000

Total gratuityAED 50,000

Two-year cap. Total end-of-service gratuity is limited to two years’ worth of total wage. Long-serving employees are capped at this ceiling regardless of tenure.

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