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The calculation of gratuity after 7 years in an unlimited contract

Hi,

For an employee who has finished 7 years, the gratuity would be calculated on 30 days' basic pay, or would it be 21 days for the first 5 years and subsequently to be taken as 30 days after 5 years or more?

The above query is based on the fact that the employee is on an unlimited contract.

It would be very kind if you could clarify in compliance with the UAE labor law.

Many Thanks!

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Khalifa Bin Huwaidan Advocates & Legal Consultants
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27 May 2021, 12:38

Dear questioner,

The employee who has worked for more than 5 years calculates his gratuity on 30 days basic times the years.

In your case, it would be 7 years × your 30 days basic salary.

Regards,

27 May 2021, 13:04

Thank you, Mr. Khalifa!

Truly appreciate it.

30 May 2021, 07:01

You are Welcome!

If you have any further questions or need legal assistance, do not hesitate to contact us.

30 May 2021, 07:02

Thank you very much sir for your kind reply and help!

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