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- If the option is not selected, the number of earned paid days is calculated as the rate (R) from the interval that matches the current service length, divided by 12 months per year, and multiplied by service length in months (S), that is, R*S/12.
- If the option is selected, the current service length S is divided into appropriate intervals S1, S2,... SN, and for each interval its interval-specific rate (R1, R2,... or RN) is used. Thus, the total number of earned paid days with the service length in the N-the interval, might be calculated as: ((S1*R1 + (S2-S1)*R2 + ...+ (S-SN)*RN))/12.
For particular examples, refer to Adding an End-of-Service Benefit Rate.
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Because, most probably, the length of service also includes a certain number of days in addition to a number of full months, the benefit amount prorated for these days should be added to the gratuity amounts. To calculate this additional amount, the number of days (Nd) is multiplied by the average daily salary (A) and rate per day, where the rate per day is the rate R from the last interval divided by 360, that is, Nd* A*R/360.
Note. In accordance with the current UAE legislation, the application checks whether the calculated amount of the benefit for the employee exceeds this employee's earnings during the last two years and selects as the benefit final pay the amount which is less of the two.
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