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Hey guys,
I’m a bit confused about how gratuity is calculated in UAE based on basic salary. I know allowances are not included, but I’m not sure about the exact formula. For example, how do they calculate it for 2–5 years vs more than 5 years of service? And does resignation vs termination make a difference in the final amount? I tried calculating it manually but still not 100% sure if my numbers are correct. Then I came across an online gratuity calculator uae, which made things easier, but I still want to understand the logic behind it. If anyone can explain it in a simple way or share an example, it would really help. Thanks
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