For ADGM gratuity, the Basic Wage used in the calculation cannot be less than 50% of Annual Wages.
The ADGM gratuity Basic Wage floor calculation
It does not decideWhether gratuity is due in a disputed termination
Enter only the facts this calculation needs.
Inputs remain in your browser. Save the result beside original payroll records rather than treating it as a certificate.
ADGM guidance says Basic Wage used for gratuity must not be less than 50% of Annual Wages. This calculator applies the floor only to the gratuity wage basis.
Formula used
Effective gratuity Basic Wage = greater of stated Basic Wage or 50% of Wages.
Assumptions to verify
- The entered figures match ADGM definitions of Basic Wage and Wages.
- The employee is covered by the ADGM Employment Regulations 2024.
What this result does not prove
- Variable payments that are outside the ADGM Wage definition.
- Whether gratuity is due in a disputed termination scenario.
Why this matters
An employment contract can show a low Basic Wage relative to total Wages. ADGM's gratuity rule prevents the gratuity wage basis from falling below the 50% floor.
Official sources
Check the current official text, your contract, actual dates and records. Where facts are disputed, use the relevant authority or a qualified UAE professional.
Review official sourcesUse the effective wage basis in the ADGM settlement calculator