In the UAE, gratuity is an end-of-service benefit paid to an employee when they leave, calculated from their basic salary and length of service — typically 21 days' basic pay for each of the first five years, and 30 days' for each year after.
Gratuity applies to employees who complete at least one year of continuous service. It is based on the basic salary (not allowances), and the exact amount depends on length of service and, historically, the reason for leaving.
Employers should accrue gratuity as a liability over time rather than treat it as a surprise cost on the way out. UAE labour law sets the framework, so always check the current law or take advice for a specific case.
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