In the UAE’s competitive job market, understanding salary calculations, termination entitlements, and payroll best practices is crucial for both employers and employees. Whether you’re figuring out your 3 months salary on termination in UAE, calculating annual leave salary, or managing payroll using cloud-based HR and payroll solutions, having the right tools—like Token Talent’s HRMS cloud solutions—makes the process faster, more accurate, and fully compliant.
3 Months Salary on Termination in UAE
Under UAE Labour Law, employees may be entitled to 3 months salary on termination in certain cases, such as arbitrary dismissal of employees under unlimited contracts or termination during specific protected circumstances.
This amount typically includes:
- Basic salary
- Allowances (housing, transport, etc.)
- Any pending leave encashments and gratuity
With Token Talent’s payroll software UAE, HR teams can automatically calculate termination pay based on contract type, tenure, and company policy—reducing the risk of compliance errors.
Annual Leave Salary Calculation in UAE
Annual leave pay is calculated based on the employee’s full wage (basic salary + allowances) at the time leave is taken.
Formula:Annual Leave Salary = (Monthly Salary ÷ 30) × Number of Leave Days
Example: If your monthly salary is AED 9,000 and you take 15 days of leave:(9,000 ÷ 30) × 15 = AED 4,500
Token Talent’s leave management system ensures leave balances, payouts, and carry-overs are tracked automatically—saving HR hours of manual work.
How to Calculate Gratuity in UAE for Unlimited Contracts
For employees under unlimited contracts, gratuity is based on years of service and the last drawn basic salary.
Standard gratuity calculation for unlimited contracts:
- Less than 1 year: No gratuity entitlement
- 1–5 years: 21 days’ basic salary per year of service
- More than 5 years: 30 days’ basic salary per year of service
Example:
If basic salary = AED 8,000 and service = 6 years:
- First 5 years =
(8,000 ÷ 30) × 21 × 5 = AED 28,000 - Sixth year =
(8,000 ÷ 30) × 30 = AED 8,000 - Total gratuity = AED 36,000
Token Talent’s gratuity calculator in the cloud-based HR and payroll module automates this instantly.
Leave Calculation in UAE
Leave entitlements in the UAE vary depending on employment duration, but the most common are:
- 30 calendar days after one year of service
- Pro-rata leave for partial years
- Sick leave up to 90 days per year (with varying pay rates)
Token Talent automates leave calculation in UAE so payroll always reflects accurate deductions and payouts.
HRMS Cloud Solutions for UAE Businesses
Switching to HRMS cloud solutions streamlines HR operations, improves data security, and ensures compliance with UAE labour regulations.
Token Talent HRMS includes:
- Payroll automation
- Leave and attendance management
- Gratuity & benefits calculation
- Employee self-service portals
- WPS-compliant payment processing
Payroll Software UAE – Why Cloud-Based is the Future
Manual payroll systems are prone to errors and delays. Payroll software UAE solutions like Token Talent offer:
- Real-time salary processing
- Automated tax & WPS compliance
- Multi-currency support for international teams
- Integrated payslip generation
With cloud-based HR and payroll, businesses can access data anywhere, collaborate across departments, and keep systems updated without IT headaches.
Salary Check UAE & Global Salary Comparisons
Employees often use salary check UAE tools or Payscale to benchmark their wages against industry averages. Token Talent’s analytics module integrates with market data sources to help HR make fair, competitive offers.
Popular salary benchmarks:
- Chemical Engineer Salary in UAE: AED 120,000–AED 180,000/year
- Aerospace Engineer Salary in UAE: AED 150,000–AED 220,000/year (Note: Correct spelling – not “airspace engineer slary”)
Globally, salaries vary significantly:
- Seattle Payscale – Higher than US average for tech and engineering roles
- Orlando Payscale – Competitive in hospitality, aviation, and healthcare
- San Diego Payscale – Strong in biotech, military, and research industries
Why Choose Token Talent?
Whether you’re calculating annual leave salary in UAE, checking 3 months salary on termination, or running complex gratuity calculations for unlimited contracts, Token Talent gives you:
- Accuracy with automated payroll
- Compliance with UAE Labour Law
- Cloud-based accessibility
- Integrated HR, payroll, and performance management in one platform
Final Word:
In today’s competitive job market, employees expect transparent salary calculations and timely payments. Employers need accuracy, compliance, and efficiency—exactly what Token Talent HRMS cloud solutions deliver.
