End of Service Gratuity in UAE

What Is End of Service Gratuity in UAE?

A mandatory benefit employers must pay to employees after termination/resignation

Who Is Eligible for Gratuity?

Employees with ≥1 year of continuous service under unlimited contract.

Calculation Formula (Unlimited Contract)

(Basic salary × 21 days × years of service) ÷ 30

Calculation Formula (Limited Contract)

(Basic salary × 21 days × years of service) ÷ 30

Gratuity Tax & Deductions

No tax, but deductions apply for misconduct or advance settlements.

Quick Tips for  Employers

Pay on time, document it, use automated tools to avoid errors.

Automate Gratuity Calculation with Zimyo

Use Zimyo’s payroll engine to calculate & stay compliant.