How to calculate gratuity for employees of Jafza companies?

The gratuity, or end of service benefits, is the monetary amount that an employee of any company deserves to be paid. This will mostly go towards them as a token of appreciation for their services.

Calculating gratuity is complicated and has a lot of legal implications so you need to know all there is about gratuities before attempting to put an amount to it.

According to the United Arab Emirates official portal (https://u.ae/information-and-services/jobs/end-of-service-benefits-for-employees-in-the-private-sector) and Article 139 of the Labour Law, all employees in the public or private sector must be paid end of service benefits as per their term with the company.

All Jafza registered businesses are required to comply with the law of the United Arab Emirates in regards to the calculation of the end of service benefits. To help customers better calculate their employees end of service or gratuity amount, Dubai trade (the service arm of Jafza) has developed an easy to use calculator.

Using this calculator, businesses can determine the amount an employee is required to receive. In order to use the calculator effectively, a company must determine the following:

• The type of employment contract the employee is currently employed on, that is a limited or an unlimited contract.
• The reason to leave the company – essentially a resignation with a notice period or termination of employment.
• The term of the employment.

Access the Dubai Trade calculator