Gratuity Calculator UAE 2021 for Limited Contract: How to Calculate End of Service Benefits

In the United Arab Emirates, the end of service gratuity is a mandatory benefit that employers must pay to their employees who have completed their limited contract. This benefit is intended to provide financial support to employees who have worked for their employer for a certain period of time and are leaving or terminating their contract.

Calculating the gratuity amount can be a complicated process, especially for those who are not familiar with the UAE labor laws. Fortunately, there are online gratuity calculators that can help employees and employers determine the amount of end of service benefits owed.

To use an end of service gratuity calculator, you need to have certain information on hand, such as:

1. Date of Joining: When did the employee start working for the company?

2. Date of Termination: When will the employee end their contract with the company?

3. Basic Salary: What is the employee`s basic salary per month?

4. Total service period: What is the total period of service that the employee has completed?

Once you have these details, you can easily calculate the end of service gratuity using an online gratuity calculator. These calculators take into account the number of years of service, whether it is less or more than five years, and the employee`s basic salary.

For example, an employee who has completed five years of service is entitled to receive an end of service gratuity of 21 days` basic salary for each year of service. However, if the employee has worked for less than five years, the gratuity would be reduced to a proportionate amount.

It is important to note that the end of service gratuity is only applicable to employees on limited contracts. Employees on unlimited contracts are not entitled to this benefit.

In conclusion, the end of service gratuity is an important benefit that employees in the UAE should be aware of. With the help of an online gratuity calculator, both employees and employers can calculate the correct amount owed in a quick and easy way. By doing so, employees can ensure that they receive their rightful amount and employers can avoid any misunderstandings or legal issues regarding end of service benefits.