On 4 September 2011 11:13:31 PM CHATURBHUJ PODDAR answered :

As per the UAE Labour Law, the gratuity shall be calculated as follows:

Twenty-one days’ wage for each year of the first five years; and thirty days’ wage for each additional year on condition that the total of the gratuity does not exceed the wages of two years.

An employee who completes one year or more in continuous service shall be entitled to gratuity at the end 
of his service.

The days of absence from work without pay shall not be included in calculating the length of service. The law also stipulates that an employee is entitled to a gratuity for the fractions of the year provided that he has completed one year in continuous service. An employee employed under a contract of unspecified terms resigning after a continuous service of not less than a year and not more than three years is entitled to one-third (i.e. seven days) of the end of service gratuity. If the period of continuous service was more than three years and less than five years, the said employee is entitled to two-thirds (14 days) of the gratuity. If the service is more than five years, then from the fifth year onwards, the employee is entitled to gratuity of 30 days per year, provided that the total gratuity shall not exceed the wages of two years.

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