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How to Calculate Gratuity Salary in the UAE
===========================================

`Gratuity <https://uaetiming.com/gratuity-calculator/>`_ is an end-of-service benefit paid to employees in the UAE. The calculation depends on the employee's length of service and basic salary. Below is a detailed explanation of the calculation process:

1. Determine the Length of Service
----------------------------------

- **Less than 1 year**: No gratuity is payable.
- **1-5 years**: Gratuity is based on 21 days of basic salary for each year of service.
- **More than 5 years**: Gratuity is based on:
  - 21 days of basic salary for the first 5 years, and
  - 30 days of basic salary for each additional year of service.

2. Calculate Daily Wage
-----------------------

To calculate the daily wage, divide the employee's monthly basic salary by 30:

.. math::

   Daily Wage = \frac{\text{Monthly Basic Salary}}{30}

3. Calculate Gratuity Amount
----------------------------

- **1-5 years of service**:

  .. math::

     Gratuity = \frac{\text{Daily Wage} \times 21 \times \text{Years of Service}}{30}

- **More than 5 years of service**:
  - Gratuity for the first 5 years:

    .. math::

       Gratuity_{5\ years} = \frac{\text{Daily Wage} \times 21 \times 5}{30}

  - Gratuity for the additional years:

    .. math::

       Gratuity_{additional} = \frac{\text{Daily Wage} \times 30 \times \text{Additional Years}}{30}

  - Total Gratuity:

    .. math::

       Total\ Gratuity = Gratuity_{5\ years} + Gratuity_{additional}

Numerical Simulation
---------------------

**Example 1:**

- **Basic monthly salary**: AED 10,000
- **Years of service**: 3 years

Steps:
- Daily Wage: :math:`10,000 / 30 = 333.33`
- Gratuity: :math:`(333.33 \times 21 \times 3) / 30 = 7,000`

**Result**: Gratuity amount is **AED 7,000**.

**Example 2:**

- **Basic monthly salary**: AED 15,000
- **Years of service**: 7 years

Steps:
- Daily Wage: :math:`15,000 / 30 = 500`
- Gratuity for first 5 years: :math:`(500 \times 21 \times 5) / 30 = 17,500`
- Gratuity for remaining 2 years: :math:`(500 \times 30 \times 2) / 30 = 10,000`
- Total Gratuity: :math:`17,500 + 10,000 = 27,500`

**Result**: Gratuity amount is **AED 27,500**.

Important Notes
---------------

- The maximum gratuity payable is equivalent to two years of the employee's basic salary.
- This information is for general guidance only. Consult with an HR professional or legal expert for specific advice.

.. toctree::
   :maxdepth: 2
   :caption: Salary Simulation

   example/index