UAE Gratuity payment eligibility

 

The gratuity payment eligibility criteria in the UAE is a complex process to understand. To make things simpler, we have sorted the most useful details and avoided all useless stuff. The information mentioned in the table below will help you easily understand the Gratuity payment rules in the UAE.


gratuity

Eligibility criteria for gratuity payment in the UAE

1. Unlimited contract-

Termination
Period served Eligible gratuity
Less than 1 year No gratuity
More than 1 year but less than 5 years 21 days’ basic salary for each year
More than 5 years 21 days’ basic salary for each year up to 5 years and 30 days’ basic salary thereafter

Resignation

Period served Eligible gratuity
Less than 1 year No gratuity
More than 1 year but less than 3 years 7 days’ basic salary for each year
More than 3 years but less than 5 years 14 days’ basic salary for each year
More than 5 years 21 days’ basic salary for each year

1.Limited contract-

Termination
Period served Eligible gratuity
Less than 1 year No gratuity
More than 1 year but less than 5 years 21 days’ basic salary for each year
More than 5 years 21 days’ basic salary for each year up to 5 years and 30 days’ basic salary thereafter

Resignation

Period served Eligible gratuity
Less than 1 year No gratuity
Completed contract period but served less than 5 years No gratuity
More than 5 years 21 days’ basic salary for each year up to 5 years and 30 days’ basic salary thereafter
Hope you now understand the eligibility for gratuity payment and the calculation process involved in gratuity payment.