Last updated: July 22, 2026 | Educational guide | Not legal advice
Why basic salary matters
One common UAE gratuity mistake is entering total salary instead of basic salary. Total salary can include housing allowance, transport allowance, commission, bonuses, or other benefits. A simple gratuity estimate usually starts with the basic salary figure.
This matters because two employees with the same total package can have different gratuity estimates if their basic salary figures are different.
Documents to compare
- Employment contract salary table.
- Salary certificate or HR salary letter.
- Payslip or payroll record showing basic salary and allowances separately.
- Final settlement worksheet, if the employer has already shared one.
- Written HR clarification if the documents show different basic salary figures.
If salary documents disagree
Do not choose the highest, lowest, or most recent number by guesswork. Put the contract, salary certificate, payslips, HR letter, and final-settlement worksheet side by side, then mark which line explicitly says basic salary and which lines are allowances or benefits.
If the employer calculation uses a different figure, ask for the basic salary basis in writing before relying on the estimate. Use the salary certificate checklist and final settlement calculator to keep the evidence and settlement lines separate.
Example
If total monthly salary is AED 12,000 but basic salary is AED 6,000, the calculator estimate should start with AED 6,000. Entering AED 12,000 would likely overstate the estimate.
Official source check
Source link checked July 22, 2026. The UAE Government end-of-service benefits page states that private-sector gratuity is calculated on the basic salary and excludes allowances. Use this page as a starting point, then check your contract and ask for qualified advice if there is a dispute.
Check the UAE Government end-of-service benefits page
Download the basic-salary checklist
Use this plain text checklist to collect salary documents before entering a number into the calculator or questioning a settlement worksheet.
Download basic-salary checklist
Quick FAQ
Where do I find basic salary?
Check your employment contract, salary certificate, HR letter, payroll records, or final settlement documents. If the figures conflict, ask HR to confirm the basic salary in writing.
Should I use total salary in the calculator?
For a conservative gratuity estimate, start with the basic salary figure rather than the wider total package that may include allowances. Always compare with official guidance or qualified advice before acting.
What should I do if salary documents disagree?
Do not choose a number by guesswork. Put the contract, salary certificate, payslips, HR letter, and final-settlement worksheet side by side, mark which line says basic salary, then ask HR for a written explanation of the figure used.
Is this legal advice?
No. This is an educational document checklist and calculator guide, not legal advice.