Gratuity Entitlement and Payment for UAE

Gratuity Entitlement: An employee is entitled to 21 days salary for the first 5 years and 30 days salary for each additional year.

Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has accrued.

If the employee resigns before the contract period, and has completed less than five years in service, the employee is not paid gratuity. But if the employee has completed more than 5 years, then they are paid the complete gratuity amount upon termination. If the contract has expired and the employee has completed more than one year in service, complete gratuity amount is paid upon termination.

Note: For unlimited contracts, If employee resigns before completing one year, then no gratuity is paid. If the employee has completed between 1 to 3 years, one-third gratuity is paid. If the employee has completed between 3 to 5 years, two-thirds gratuity is paid. If the employee has completed more than 5 years, complete gratuity is paid.

Calculation Groups and Calculations

Gratuity payment is calculated through supplemental earnings Gratuity Payment which is part of the calculation group Gratuity. Calculations are processed through the element created as a Gratuity Payment.

To view details on calculation groups, calculations and elements:

1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.
2. Navigate to the Payroll Calculation Information task in the Payroll work area.
3. Select Gratuity Calculation and view the details.