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-   -   Gratuity Payment (https://britishexpats.com/forum/middle-east-60/gratuity-payment-634919/)

AnotherWorld Oct 9th 2009 10:45 pm

Gratuity Payment
 
IS it calculated on your basic salary only or your salary including allowances?

Patsy Stoned Oct 9th 2009 10:49 pm

Re: Gratuity Payment
 

Originally Posted by AnotherWorld (Post 8005853)
IS it calculated on your basic salary only or your salary including allowances?

on your basic salary.

busybee2 Oct 9th 2009 10:54 pm

Re: Gratuity Payment
 
yep basic.

Blue Cat Oct 9th 2009 10:59 pm

Re: Gratuity Payment
 
and just incase two comments aren't enough, basic :p

CeeBee Oct 10th 2009 12:40 am

Re: Gratuity Payment
 
What they said.

rowell Oct 10th 2009 12:59 am

Re: Gratuity Payment
 

Originally Posted by Blue Cat (Post 8005881)
and just incase two comments aren't enough, basic :p

and if you leave of your own accord not 100% of the basic according to labour law

NorthernLad Oct 10th 2009 3:13 am

Re: Gratuity Payment
 

Originally Posted by rowell (Post 8006038)
and if you leave of your own accord not 100% of the basic according to labour law

I think it goes on years with company. After 5 years you do get 1 months salary for each year worked here (at least according to our HR, we had this discussion a few weeks ago).

Jeeper Oct 10th 2009 3:24 am

Re: Gratuity Payment
 
Basic.:D

Cry haddock Oct 10th 2009 5:28 am

Re: Gratuity Payment
 

Originally Posted by Jeeper (Post 8006255)
Basic.:D

Indeed basic, and it's 21 days pay per year worked, not 30. so ((monthly salary x 12) /365) x 21, which comes to about twenty one thirtieths of your normal monthly basic :-).
You then get 1/3 of this for over one year but less than 3 years service, 2/3 for between 3 and 5 years and 3/3 (ie all 21 days) one you have finished 5years. Simple really!

rowell Oct 10th 2009 5:28 am

Re: Gratuity Payment
 

Originally Posted by NorthernLad (Post 8006240)
I think it goes on years with company. After 5 years you do get 1 months salary for each year worked here (at least according to our HR, we had this discussion a few weeks ago).

Yes you are correct

busybee2 Oct 10th 2009 5:29 am

Re: Gratuity Payment
 

Originally Posted by NorthernLad (Post 8006240)
I think it goes on years with company. After 5 years you do get 1 months salary for each year worked here (at least according to our HR, we had this discussion a few weeks ago).

it does go up depending on length with company, but its always done on the basic salary.

commander Oct 10th 2009 5:48 am

Re: Gratuity Payment
 

Originally Posted by busybee2 (Post 8006441)
it does go up depending on length with company, but its always done on the basic salary.

yes i think we have ascertained that it is basic....ffs

Euc- Oct 10th 2009 7:15 am

Re: Gratuity Payment
 

Originally Posted by Cry haddock (Post 8006435)
Indeed basic, and it's 21 days pay per year worked, not 30. so ((monthly salary x 12) /365) x 21, which comes to about twenty one thirtieths of your normal monthly basic :-).
You then get 1/3 of this for over one year but less than 3 years service, 2/3 for between 3 and 5 years and 3/3 (ie all 21 days) one you have finished 5years. Simple really!

Should be a difference between Resigning and Termination though:


Termination by Employer for any non-material fault on your part:
* The benefit will be calculated on the basis of the basic salary of 21 days for each year of
service in respect of the first 5 (five) years (provided one year of service has been completed)
and 30 (thirty) days remuneration for each subsequent year.

Termination/Resignation by Employee:
* If you resign from employment on your own accord after continuous service of not less than
one year and not more than 3 (three) years, you will be entitled to one-third of the end of
service benefit (i.e. 7 days per each year) calculated on the basic salary.
* Where the continuous period of service exceeds 3 (three) years but does not exceed 5 (five)
years, you will be entitled to two-thirds of the end of service benefit (i.e. 14 days per each year)
calculated on the basic salary.
* Where the continuous period of service exceeds 5 (five) years, you will be entitled to the full
end of service benefit (i.e. 21 days per year for five years and 30 days per year after five
years) calculated on the basic salary.

Vimto Oct 10th 2009 2:27 pm

Re: Gratuity Payment
 
http://www.zu.ac.ae/library/html/UAE...ELabourLaw.pdf

Read and inwardly digest, very good chapter on Gratuity payments.

Meow Oct 10th 2009 11:06 pm

Re: Gratuity Payment
 

Originally Posted by Vimto (Post 8006987)
http://www.zu.ac.ae/library/html/UAE...ELabourLaw.pdf

Read and inwardly digest, very good chapter on Gratuity payments.

Be warned that there are some errors in this documentation. Best to check the actual labour law which is available online.

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