1. What is MOHRE Gratuity?

The MOHRE (Ministry of Human Resources and Emiratisation) gratuity is an end-of-service benefit that employers in the UAE must pay to employees who complete at least one year of service. It's calculated based on basic salary and years of service.

2. How Does the Calculator Work?

The calculator uses the MOHRE gratuity formula:

Where:

• Basic Salary — Employee's basic salary in AED
• 30 — Days in a month (for calculation purposes)
• 21 — Days per year of service for first 5 years
• 30 — Days per year of service after 5 years
• Years — Total years of service

Explanation: The formula calculates 21 days' salary for each year of the first 5 years of service, and 30 days' salary for each additional year beyond 5 years.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their rightful end-of-service benefits and helps employers comply with UAE labor laws.

4. Using the Calculator

Tips: Enter basic salary in AED (without allowances) and total years of service (can include fractions of years). All values must be valid (salary > 0, years > 0).

5. Frequently Asked Questions (FAQ)

Q1: What counts as basic salary for gratuity?
A: Only the fixed basic salary component, excluding allowances (housing, transport, etc.).

Q2: Is gratuity payable for less than 1 year?
A: No, employees must complete at least 1 year of continuous service to be eligible.

Q3: How is partial year calculated?
A: Fractions of a year are calculated proportionally (e.g., 3.5 years = 3 years + 6 months).

Q4: Are there different rules for different contract types?
A: Yes, limited contract gratuity may differ from unlimited contract calculations.

Q5: What if employment is terminated before completion?
A: Different rules apply for termination before completion of contract.