UAE End-of-Service Gratuity: How It's Calculated

Gratuity is a statutory liability that accrues over an employee's tenure and is payable on termination or resignation (subject to conditions). Employers should track it as an ongoing accrued liability, not a surprise year-end cost.

Because rates depend on tenure bands and contract type, manual tracking across a growing headcount becomes error-prone quickly — this is one of the most common payroll cleanup issues we see.