DMCC Gratuity System – Complete Overview
DMCC (Dubai Multi Commodities Centre) applies its own employment framework for end-of-service benefits. The DMCC Gratuity Calculator determines EOSB strictly on the basis of basic salary, while allowances remain excluded throughout the calculation. Although DMCC follows independent regulations, its gratuity structure aligns closely with the MOHRE model.
DMCC calculates gratuity based on service duration. The system applies 21 days of basic salary for each of the first five years of employment and 30 days per year for service that exceeds five years. This structure rewards longer service and ensures a balanced entitlement. The calculator also adds incomplete years proportionately, which results in accurate and transparent EOSB computation.
Eligibility Requirements
DMCC grants gratuity only when an employee completes at least one full year of continuous service. The employee must have a valid employment contract because the gratuity entitlement depends directly on the contract terms. DMCC can also cancel the gratuity if the employer terminates the employee for gross misconduct.
DMCC deducts unpaid leave from the total service period, which reduces the service years and automatically lowers the final gratuity amount. If the employee fails to serve the required notice period, the system applies notice pay deductions, which also reduce the final gratuity.
DMCC Gratuity Calculation Rules – Clear & Accurate
Daily Salary Formula:
Daily Salary = Basic Salary ÷ 30
Structure:
- First 5 years:
21 days × daily salary × total completed years - After 5 years:
30 days × daily salary × remaining years
Pro-Rata Method:
Incomplete years (months/days) are calculated by converting proportional.
Example:
0.45 years → 0.45 × 30 = 13.5 days of gratuity
Exclusions
DMCC calculates end-of-service gratuity based on basic salary only.
Housing, transportation, food, mobile allowances, fixed allowances, overtime, bonuses, and other monetary benefits do not form part of the EOSB calculation.
Adjustments
Unpaid Leave Days:
These days are deducted from the total service duration.
Notice Pay Deduction:
If notice is not served, the deduction is subtracted from the final gratuity amount.
Final Settlement:
Gratuity forms only one part of the final settlement. Salary dues, leave encashment, reimbursements, and other components are processed separately.
DMCC Gratuity Formula (Actual Calculation Method)
Daily Salary = Basic Salary ÷ 30
For the first 5 years of service:
Gratuity = Daily Salary × 21 × Completed Years
For service beyond 5 years:
Gratuity = Daily Salary × 30 × Remaining Years
Additional Rules:
- Unpaid leave is deducted from total service.
- Incomplete service years are calculated proportionally.
- Notice period deduction reduces the final gratuity.
DMCC Gratuity – Full Example (Correct & Expanded)
Country / Currency: UAE (AED)
Contract Type: Permanent
Joining Date: 15/02/2016
Leaving Date: 20/08/2023
Basic Salary: 7,000 AED
Allowances: 1,500 AED (excluded from calculation)
Unpaid Leave Days: 20
Notice Deduction: 2,000 AED
Step 1 – Service Duration Calculation
Total calendar service ≈ 7 years, 6 months, 5 days
Unpaid leave: –20 days
Adjusted service ≈ 7 years, 5 months, 15 days
Convert to years:
7 years + 5.5 months ≈ 7.46 years
Step 2 – Daily Salary Calculation
7,000 ÷ 30 = 233.33 AED
Step 3 – Gratuity Computation
First 5 years:
233.33 × 21 × 5 = 24,499.65 AED
Remaining 2.46 years:
233.33 × 30 × 2 = 13,999.80 AED
233.33 × 30 × 0.46 = 3,213.35 AED
Subtotal:
24,499.65 + 13,999.80 + 3,213.35 = 41,712.80 AED
Step 4 – Apply Notice Deduction
41,712.80 – 2,000 = 39,712.80 AED
DMCC Final Notes
The DMCC gratuity system becomes easy to calculate when the basic salary, service duration, unpaid leave days, and notice deductions are clearly entered. The pro-rata method accurately adjusts partial service years and keeps the final EOSB precise.
DMCC applies a structure similar to federal MOHRE rules, but specific contract clauses can influence the final gratuity entitlement. Correct data entry in all fields ensures an accurate and error-free DMCC gratuity calculation.