I need your valuable suggestions regarding gratuity. If a Employee Serve the Organization Months in UAE. Do we pay the gratuity of 2 Years or do we calculate monthly Basis and paid for Months only?

Dear Khaliq,

The gratuity should be calculated on the pro-rata basis on the days too. If the employee works for 18 months and 5 days, you should calculate the 21 days/365 days* no. of days worked (if the employee is under unlimited contract). If the employee is under limited contract he will not anything & deduction of 45 days for breaking the contract.

Hope this clarifies.

Thank you,

Dear I would suggest make a committee of management or discuss in board of directors meeting with options given by HR head. What ever policy is decided in view of local laws just follow it.

Dear Mr. Akber,I agree with your answer that you explain, But my question was in different dimension.Yearly Gratuity is ok & 21 days of Basic if less then Five Years.If a employee serve the organization 18 Months & 5 day...In this scenario what we will do,we will give 2 Years or calculate on monthly Basis...

Kindly Guide ...Many Thanks

It will be calculated on yearly bases. If less then five years then 21days basic per year and years after five years gratuity will be 30 days per year.