Criteria for Calculating the End of Service Gratuity
- An Employee is eligible to obtain the End of Service Gratuity after completing a minimum term of one year in employment.
- The Employee is eligible to an End of Service Gratuity comprising of 21 days for each of the first five (5) years of service.
- When the employment is more than 5 years, the employee is eligible to 30 days’ salary for each additional year, provided the combined amount of End of Service shall not exceed 2 years’ remuneration.
- The End of Service Gratuity for the fraction of a year will be calculated on a pro rata basis.
- If the employee terminates his employment during the first five years of service, certain deductions apply.
- Days of absence from work without pay are not included in computing the End of Service Gratuity.
- The basic salary agreed in the contract, is used as a basis for calculating the End of Service Gratuity.
- This End of Service Gratuity does not include anything given to the Employee in the form of accommodation, transportation, travel, overtime, representation and cashiers allowances.
- The Employer may deduct any amount from the End of Service Gratuity outstanding to him/her.
To calculate your employee Service Gratuity: Click Here
Frequently Asked Question
Q.2: What is the mean of ENd of Service Gratuity?
Answer: In UAE, an Employee who has completed at least One Year, will be eligible for end of service gratuity.
Q.2: How is the End of Service Remuneration calculated? Is it according to the basic salary or to the gross salary?
Answer: The End of Service Remuneration is calculated according to the last paid basic salary only, without any allowances.
Q.3: Does the employer have the right to refuse my annual vacation despite me completing one year of service with him?
Answer: Yes, the employer has the right and he/she can decide when the annual leave starts. In addition, the employer can (in a very critical business situation) divide the annual vacation period into two and transfer the remaining days to the following year.
Q.4: How does the Ministry of Labour deal with the Free-Zone employees?
Answer: The Free-Zone employees can approach the Labour Office. The complaint is transferred to the Labour Court without any interference from the Ministry of Labour and all the decisions to be made by the Labour Court.
Disclaimer: We are a Business Setup & Consulting Firm, we are sharing this article for information purpose, we have given the reference of the information we have collected. Ministry of Human Resouce & Emiratisation will take care of all these cases. any nearest Tasheel Center will also help you to find out how much your gratuity should be.
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