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Anyone familiar with how gratuity is calculated in the UAE? - Printable Version

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Anyone familiar with how gratuity is calculated in the UAE? - Timothy_Hays - 10-20-2025

Hi everyone,
I know this forum has members working or doing business in different countries, so I was hoping someone might know about this How is end-of-service gratuity calculated for employees in the UAE? I’ve been reading about it recently and noticed some confusion regarding what counts as “basic salary” and how it changes based on years of service.
If anyone has experience working in the UAE or managing staff there, I’d love to hear how you handle gratuity calculations.
I also found a helpful UAE gratuity calculator that uses the official labor law formula might be useful for anyone curious about how it works.
Thanks in advance!