🧮 The Math Behind the Money
Gratuity Calculation Formula
How to calculate your benefits manually
The Basic Formula
The core of the calculation relies on your Daily Basic Salary.
Daily Wage = Monthly Basic Salary / 30
Step-by-Step Calculation
- Determine Service Period: Calculate the exact number of years, months, and days you have worked. Deduct any unpaid leave.
- Calculate First 5 Years: Multiply the Daily Wage by 21 for each year (up to 5 years).
- Calculate Subsequent Years: Multiply the Daily Wage by 30 for each year beyond 5 years.
- Sum It Up: Add the two amounts together.
Real-World Examples
Example 1: 3 Years Service
Basic Salary: AED 10,000
Daily Wage: 10,000 / 30 = AED 333.33
Gratuity: 21 days × 3 years = 63 days
Total: 63 × 333.33 = AED 21,000
Example 2: 7 Years Service
Basic Salary: AED 10,000
First 5 Years: 21 × 5 = 105 days
Next 2 Years: 30 × 2 = 60 days
Total Days: 165 days
Total: 165 × 333.33 = AED 55,000