Calculating gratuity in the UAE can be a tricky process, especially for those who are on a limited contract. This is because limited contract employees are not entitled to full gratuity benefits, unlike those on unlimited contracts. However, there are still ways to determine how much gratuity you are entitled to as an employee on a limited contract.
To begin with, it is essential to understand what gratuity is and how it works in the UAE. Gratuity is a sum of money that is paid to an employee at the end of their employment tenure, as a form of appreciation for their service. The gratuity amount is calculated based on the employee`s basic salary and the number of years that they have worked for the company.
For limited contract employees, gratuity is calculated as follows:
– If the employee completes their limited contract tenure, they are entitled to a gratuity amount equivalent to 21 days of their basic salary for every year of service.
– If the employee resigns before completing their contract tenure, they are not entitled to any gratuity amount unless they have completed at least one year of service. In such cases, they are entitled to receive a gratuity amount equivalent to 21 days of their basic salary for every year of service completed. If they have completed less than a full year of service, they are not entitled to any gratuity amount.
Now that we have a basic understanding of how gratuity works for limited contract employees in the UAE, let us take a look at how we can use a gratuity calculator to determine the amount of gratuity that we are entitled to.
There are several gratuity calculators available online that can help you calculate your gratuity amount. These calculators require you to input your basic salary, the number of years of service, and other relevant information. Once you have entered this information, the calculator will provide you with an estimated gratuity amount.
It is important to note that gratuity calculators provide only an estimate of your gratuity amount and should not be considered as the final amount. The actual gratuity amount may vary based on several factors, including the company`s policies and the UAE Labour Law.
In conclusion, calculating gratuity for limited contract employees in the UAE can be a complicated process. However, with the help of gratuity calculators, you can get an estimate of your entitlement. It is important to remember to consult with your company`s HR department or a legal professional to ensure that you receive the correct gratuity amount based on your contract and service period.