"UAE Gratuity Manual Calculation Template"

"Instructions: Fill in the yellow cells (Basic Salary, First Working Day, Last Working Day, Contract Type, Reason for Leaving). Formulas calculate automatically in Excel/Google Sheets."

"Input","Value"
"Basic Monthly Salary (AED)",""
"First Working Day (dd/mm/yyyy)",""
"Last Working Day (dd/mm/yyyy)",""
"Contract Type (Limited/Unlimited)",""
"Reason for Leaving (Resignation/Termination)",""

"Step","Formula","Notes"
"1. Total days served","=Last_Working_Day - First_Working_Day","Simple date subtraction"
"2. Total years served","=Total_Days/365","UAE gratuity convention uses 365 days per year"
"3. Daily wage","=Basic_Salary/30","30-day month convention"
"4. Gratuity for first 5 years","=Daily_Wage*21*MIN(Years_Served,5)","21 days per year, capped at 5 years"
"5. Gratuity for years beyond 5","=Daily_Wage*30*MAX(Years_Served-5,0)","30 days per year after year 5"
"6. Total gratuity (limited contract)","=Step4+Step5","Full entitlement, no resignation reduction"
"7. Unlimited contract resignation multiplier","=IF(Years_Served<1,0,IF(Years_Served<3,1/3,IF(Years_Served<5,2/3,1)))","Only applies to legacy unlimited contracts, years 1-5"
"8. Total gratuity (legacy unlimited, resignation)","=Step4*Step7+Step5","Multiply first-5-year portion by the resignation multiplier"
"9. Apply 2-year cap","=MIN(Total_Gratuity, Basic_Salary*24)","Gratuity cannot exceed 24 months of basic salary"

"Worked Example","",""
"Basic Salary","15000",""
"Years Served","6",""
"Daily Wage","=15000/30","500"
"First 5 years (21 days x 5 x daily wage)","=500*21*5","52500"
"Year 6 (30 days x 1 x daily wage)","=500*30*1","15000"
"Total Gratuity","=52500+15000","67500 AED"