Here is an example of gratuity pay in case of limited contract:
Basic salary: Dh15,000
Daily wage = 15,000 ÷ 30 = Dh500
500 x 21 = Dh10,500
Dh10500 is the gratuity entitlement of the employee for each year
500 x 30 = Dh15,000
Dh15,000 is the gratuity entitlement of the employee for each year
The gratuity pay for unlimited contract is based on the number of years served in the organization. For unlimited contract gratuity pay, an employee has to complete at least one year of service in the company.