how to calculate end of service gratuity in UAE
Calculate UAE end-of-service gratuity on basic salary 46s
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They didn't want a demo. They wanted the number they were avoiding. End-of-service pay. Owed by law. Accruing since day one. Six countries, six formulas. Al Reem starts with the UAE. Read that carefully. Basic salary. Allowances excluded. This is where spreadsheets go wrong. They use the full salary. Two dates. Six years of service. That crosses a threshold. Twenty-one days a year for five years. Thirty a year after that. One employee. Now multiply by eighty. That is the liability nobody had written down.
Frequently asked questions
Is UAE gratuity calculated on basic salary or total salary?
On basic salary only — allowances are excluded. Using the full salary is the most common spreadsheet error, and it overstates what you owe.
How many days per year of service does the UAE award?
Twenty-one days a year for the first five years of service, and thirty days a year for every year after that. Crossing five years changes the rate.
Does each GCC country use a different gratuity formula?
Yes — six countries, six formulas. The calculator applies the employee's own country rule, so a UAE and an Omani colleague with identical service get different, correct answers.