1. Implementing Payroll for the United Arab Emirates
  2. Employer Gratuity Details Card for UAE

Employer Gratuity Details Card for UAE

The gratuity details card holds the PSU gratuity details and uses the following info for gratuity calculation at the legal entity level.

  • Calculation Basis: The amount of gratuity is based on the salary per day of the employee which differs based on whether you choose fixed or actual calculation basis. For gratuity calculation, the monthly salary is converted to annual salary. This amount is divided by the number of days in a year. The actual calculation basis uses 365 days in a year whereas the fixed calculation basis uses 360 days.
  • Salary Formula: You must define your own salary formula for gratuity calculation. Once you have defined the salary formula, you can select it here. The formula must return the values using variable MONTHLY_SALARY.
  • Reference Formula: You can define your own reference formula to calculate the paid gratuity amount and select it here. The formula must return the values using the variable PAID_GRATUITY. This overrides the amount calculated by the default reference formula in the End of Service Details card in the gratuity details calculation component, and will be used as the Maximum GratuityAccrued at the Payroll Period End Date in the Monthly Gratuity Accrual calculation.