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Article On End Of Service Gratuity

Article On End Of Service Gratuity

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Old Sep 22nd 2011, 1:20 pm
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Default Article On End Of Service Gratuity

http://www.khaleejtimes.com/displaya...on=theuae&col=

"As per article 114/2, an expatriate employee is entitled to a gratuity upon the end of service as follows: an amount equivalent to one month basic salary against every year of the first five, one and a half month basic salary against every year of the next five (6-10) and two month basic salary against every of the years (11+) to follow."

Calculations seem different than what I thought and have read on here, has there been a change in the system, or is it ace reporting from Khaleej Times?
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Old Sep 22nd 2011, 1:27 pm
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Default Re: Article On End Of Service Gratuity

Khaleej Times is barely fit to line a cat litter tray...
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Old Sep 23rd 2011, 1:07 pm
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Default Re: Article On End Of Service Gratuity

Unless it's changed in the last 2 months then that article is rubbish...

My understanding is:

Workout out your daily salary by dividing your yearly salary by 365 days.

First five years is 21 days x daily rate x period worked
Five to Ten years is 30 days x daily rate x period worked after five years.

For example - If you had yearly salary of 400,000dhs, started on 4th Dec 2004 and left on 30th June 2011 you'd be owed 166,680dhs

Sample excel attached.

(this is an example - not saying it's 100% correct but I think it is...)
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gratuity_sample.xls (27.5 KB, 133 views)
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Old Sep 23rd 2011, 1:43 pm
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Default Re: Article On End Of Service Gratuity

You only get the 21 days/year if you've been with the company for a full five years. I think it's seven days for 1 to 3 years, 14 days for 3-5 years and 21 days for 5 to 10 years. More than ten years is 30 days for each year but it's also capped to no more than two years' salary total.

Originally Posted by Autonomy
Unless it's changed in the last 2 months then that article is rubbish...

My understanding is:

Workout out your daily salary by dividing your yearly salary by 365 days.

First five years is 21 days x daily rate x period worked
Five to Ten years is 30 days x daily rate x period worked after five years.

For example - If you had yearly salary of 400,000dhs, started on 4th Dec 2004 and left on 30th June 2011 you'd be owed 166,680dhs

Sample excel attached.

(this is an example - not saying it's 100% correct but I think it is...)
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Old Sep 25th 2011, 4:42 am
  #5  
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Default Re: Article On End Of Service Gratuity

This is a few years old, but I doubt it has changed much
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