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End of Service Gratuity

End of Service Gratuity

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Old Jan 21st 2013, 7:03 am
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Default End of Service Gratuity

So I know you are entitled to 21 days basic salary for each of the first 5 years worked and 30 days for each subsequent year, but how are the "days" calculated? For example, I get six weeks holiday which (until I came here) equated to 30 days (ie. 6 x 5 working days), but here if anyone says they get 30 days annual holiday, that usually means one calendar month. So, going back to my EOS gratuity query, does 30 days mean 4 or 6 weeks? Am guessing that it's simply calculated by dividing 30 by 365 days and multiplying this factor by your annual salary for each year. Presumably the lower 21 days rate still applies to the first 5 years irrespective of your length of service. Can anybody confirm all of this? It's for a family friend in case any of you were hoping that I am leaving. Not yet anyway.
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Old Jan 21st 2013, 7:16 am
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Default Re: End of Service Gratuity

I'm not aware of the increase from 21 to 30 days after 5 years but I've never stayed anywhere long enough for that!!!

My understanding, having gone through the process once, is it is essentially (monthly basic salary/30)x21xNo. years

No. of years is pro rata so 30 months would be 2.5 etc
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Old Jan 21st 2013, 7:27 am
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Default Re: End of Service Gratuity

Just had a PC crash and lost that old calculator we used to have.

Anyone got a copy? please

Thanks
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Old Jan 21st 2013, 7:31 am
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Default Re: End of Service Gratuity

Originally Posted by mentalist
So I know you are entitled to 21 days basic salary for each of the first 5 years worked and 30 days for each subsequent year, but how are the "days" calculated? For example, I get six weeks holiday which (until I came here) equated to 30 days (ie. 6 x 5 working days), but here if anyone says they get 30 days annual holiday, that usually means one calendar month. So, going back to my EOS gratuity query, does 30 days mean 4 or 6 weeks? Am guessing that it's simply calculated by dividing 30 by 365 days and multiplying this factor by your annual salary for each year. Presumably the lower 21 days rate still applies to the first 5 years irrespective of your length of service. Can anybody confirm all of this? It's for a family friend in case any of you were hoping that I am leaving. Not yet anyway.
yes once you get to 5 years it then goes up to 30 days, i believe 21 days upto 5 years and then 30 days thereafter, once you have done 2 years of course in the first place. meow will be the one to come back with the official wording etc.
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Old Jan 21st 2013, 7:34 am
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Default Re: End of Service Gratuity

look here

http://www.habibalmulla.com/Mediares...ebf21c9c4b.pdf
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Old Jan 21st 2013, 7:43 am
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Default Re: End of Service Gratuity

that calculator was great as we get a bit better than the norm. We get 27 days for the first 5 years +10% and 37 days and 10& after. Also if they get rid of You you get double. I said to my boss I was going to knock him out and take the double but apperently it doesn't work like that.

You could play with the settings and keep a track of how much you could get for jumping every day
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Old Jan 21st 2013, 8:12 am
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Default Re: End of Service Gratuity

It also depends on contract, IE: 4 year contract you get 21 days x 4 years.

IF like me, you are on an open ended contract and you leave then you are breaking the contract technically so get 7 days.
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Old Jan 21st 2013, 8:22 am
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Default Re: End of Service Gratuity

Originally Posted by busybee2
Very useful but it still doesn't explain how the 21 days or 30 days is calculated, which is the point of my particular question. An earlier poster says its your monthly x 21 days divided by 30, which seems logical.
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Old Jan 21st 2013, 8:34 am
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Default Re: End of Service Gratuity

scamp - i see the reference to reduced gratuity in the attachment and it setoff alarm bells as im planning to resign shortly from a permanent contract and need my gratuity!

are you aware of this ever being implemented? I certainly wasnt penalised for resigning from an open ended contract when i left my previous emplyer in qatar??
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Old Jan 21st 2013, 8:40 am
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Default Re: End of Service Gratuity

Originally Posted by dohadesertdog
scamp - i see the reference to reduced gratuity in the attachment and it setoff alarm bells as im planning to resign shortly from a permanent contract and need my gratuity!

are you aware of this ever being implemented? I certainly wasnt penalised for resigning from an open ended contract when i left my previous emplyer in qatar??
Yeah I got reduced gratuity in my last place.

It's a matter of luck I reckon. If they know they'll pay less, if they don't they won't.
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Old Jan 21st 2013, 9:14 am
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Default Re: End of Service Gratuity

Originally Posted by Scamp
It also depends on contract, IE: 4 year contract you get 21 days x 4 years.

IF like me, you are on an open ended contract and you leave then you are breaking the contract technically so get 7 days.
Only if you have served between 1 & 3 years.

If you resign having served between 3 & 5 years, you get 14 days per year

More than 5 years = full entitlement
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Old Jan 21st 2013, 9:23 am
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Default Re: End of Service Gratuity

Originally Posted by mentalist
Very useful but it still doesn't explain how the 21 days or 30 days is calculated, which is the point of my particular question. An earlier poster says its your monthly x 21 days divided by 30, which seems logical.
Basic Salary / 365 = 1 day salary (Y)

First 5 years service, gratuity = 21 x Y x 5
Year 6 gratuity = 30 x Y x 1
Year 7 gratuity = 30 x Y x 1, etc

The above is pro-rata'd on a daily basis from when you join and leave the company
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Old Jan 21st 2013, 10:11 am
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Default Re: End of Service Gratuity

Originally Posted by Mogs
Basic Salary / 365 = 1 day salary (Y)

First 5 years service, gratuity = 21 x Y x 5
Year 6 gratuity = 30 x Y x 1
Year 7 gratuity = 30 x Y x 1, etc

The above is pro-rata'd on a daily basis from when you join and leave the company
So post no.2 is not correct, then?
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Old Jan 21st 2013, 10:14 am
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Default Re: End of Service Gratuity

Originally Posted by mentalist
So post no.2 is not correct, then?
Companies seem to do it differently. My place did it as follows:

Annual salary (to make it simple) 1,000,000 AED

Monthly = 83,333

Working days = 22, 83,333/22 = 3,787

3,787 x 7 days = 26,515
+ pro rata'd for the 7 months of the second year (which I think is generous?)
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Old Jan 21st 2013, 10:18 am
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Default Re: End of Service Gratuity

Not sure if much in this has changed, gratuity is still the same as far as I know.
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