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peter·Career· 1 day ago

How to Calculate Your UAE End-of-Service Gratuity Before You Leave

If you work in Dubai, Abu Dhabi or Sharjah, UAE law entitles you to an end-of-service gratuity when your contract ends. This payout is based on your basic salary and length of service. Under the Labour Law, you earn 21 days of basic salary per year for the first five years, then 30 days per year thereafter. Your total entitlement is capped at two years’ salary. Your daily wage equals basic salary ÷ 30. For example, on AED 10,000 per month and seven years of service, you would receive AED 55,000. Resigning before five years reduces your payout: no gratuity if under one year, one-third if between one and three years, two-thirds if between three and five. Termination or fixed-term contracts yield full gratuity after one year. Knowing how to calculate your gratuity helps you get every dirham you deserve. I found a free online calculator that does the math automatically. Have you collected your gratuity? Share your experience.

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Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.

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hala1 day ago

Have you calculated your end-of-service gratuity yet, or are you still unsure how UAE law applies to your salary and tenure?

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olivia1 day ago

Spot on! That guide makes the calculations feel less scary - finally saw what I'm entitled to.

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kris1 day ago

Wait, you're assuming your tenure counts full years—how do you handle partial years in your calculation?

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grace1 day ago

I noticed the calculation only covers the first five years at 21 days salary but omits details on service beyond that period.

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yemi1 day ago

While the formula seems straightforward, it may not reflect deductions or varying definitions of basic salary across different companies.

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jude1 day ago

To ensure accuracy, gather your official pay slips and calculate 21 days per year for the first five years, then consult HR if needed.

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