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UAE Free Zone Gratuity Calculator — JAFZA, DMCC, DIFC & More

Calculate end-of-service gratuity for UAE free zone employees across JAFZA, DMCC, DAFZA, SAIF Zone, DDA and DIFC (DEWS scheme).

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Estimates only. Final amounts depend on your employment contract and free zone authority policies. Not legal advice. Verify with your free zone authority (e.g., JAFZA Labour Affairs) or MOHRE.

Basic salary only — exclude housing, transport, commissions, allowances

AED
AED
JAFZADMCCDIFCMOHRE

Source: Federal Decree-Law No. 33 of 2021 | DIFC Employment Law 2019 (as amended)

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UAE Free Zone Gratuity: Rules, Calculation & Key Differences

The UAE is home to over 45 free zones, each with its own regulatory authority — yet most of them apply the same end-of-service gratuity rules as mainland UAE. If you work in JAFZA, DMCC, DAFZA, SAIF Zone, DDA, or most other Emirates free zones, your gratuity entitlement is governed by Federal Decree-Law No. 33 of 2021, the same law that applies to private-sector employees across the country. DIFC is the notable exception, operating its own workplace savings scheme. **The Standard Federal Formula — Most Free Zones** For employees in the vast majority of UAE free zones, end-of-service gratuity is calculated as follows: - **Years 1 to 5:** 21 days of basic salary per year of service - **Beyond 5 years:** 30 days of basic salary per additional year - **Cap:** Total gratuity cannot exceed 2 years of basic salary (24 months) - **Basis:** Last basic wage only — housing, transport, commissions, and all other allowances are excluded - **Minimum service:** 1 full year of continuous employment **Daily Rate Formula:** Daily rate = Basic monthly salary ÷ 30 **Example — JAFZA Gratuity Calculation:** An employee at JAFZA with 6 years and 4 months (6.33 years) of service and a basic salary of AED 12,000/month: - Daily rate = AED 12,000 ÷ 30 = AED 400/day - First 5 years: 5 × 21 × AED 400 = AED 42,000 - Beyond 5 years (1.33 yrs): 1.33 × 30 × AED 400 = AED 15,960 - **Total: AED 57,960** (well under the AED 288,000 cap) This same formula applies to DMCC gratuity, DAFZA gratuity calculator results, Jebel Ali Free Zone gratuity, SAIF Zone calculations, and Dubai free zone gratuity generally. **JAFZA Gratuity — JAFZA Labour Affairs** Jebel Ali Free Zone Authority (JAFZA) is one of the world's largest free zones and home to over 9,000 companies. JAFZA operates its own labour affairs department, but applies the UAE federal gratuity rules. Any disputes regarding JAFZA gratuity or end-of-service benefits are handled through JAFZA Labour Affairs, with MOHRE available as a higher authority. Employees should ensure their employment contracts correctly state the basic salary, as this is the sole basis for the gratuity calculation. **DMCC Gratuity and Labour Law** DMCC (Dubai Multi Commodities Centre) is the world's largest free zone by number of registered companies, with over 25,000 member companies. DMCC employees are subject to UAE Federal Decree-Law No. 33 of 2021 for all labour matters including gratuity. Under the 2021 law, all new contracts must be fixed-term (limited), and gratuity is payable in full regardless of whether the employee resigned or was terminated — eliminating the reductions that applied under the old unlimited contract rules. **DIFC Gratuity — The DEWS Exception** The Dubai International Financial Centre (DIFC) is a financial free zone with its own legal system, courts, and employment law. From 1 February 2020, DIFC replaced traditional end-of-service gratuity with the **DEWS (Workplace Savings) Scheme** — a defined-contribution model administered by Equiom (fund manager: Zurich International Life). Under DEWS, employers must contribute monthly into an individual investment account for each employee: - **Years 1–5:** 5.83% of basic monthly salary per month - **Beyond 5 years:** 8.33% of basic monthly salary per month Key differences from traditional gratuity: - Contributions begin from day one of employment (no 1-year minimum to start accumulating) - The account is portable — employees can transfer it when leaving DIFC - Contributions are invested and may grow with market returns - Early access is possible under specific circumstances - Employees who had service before February 2020 may have a separate legacy gratuity entitlement calculated under old rules **DAFZA Gratuity Calculator — Dubai Airport Free Zone** Dubai Airport Free Zone (DAFZA) follows standard federal labour law. Employees calculate their gratuity using the 21-days (years 1–5) and 30-days (beyond year 5) formula. DAFZA's proximity to Dubai International Airport and its focus on aviation, logistics, and high-tech sectors mean that many employees receive salaries structured with significant allowance components — but remember, only the basic salary counts toward the gratuity base. **Free Zone vs. Mainland UAE Gratuity: Key Differences** | Factor | Mainland UAE | Most Free Zones | DIFC | |---|---|---|---| | Law | Federal DL No. 33/2021 | Federal DL No. 33/2021 | DIFC Employment Law | | Formula | 21 days + 30 days | 21 days + 30 days | DEWS 5.83%/8.33% | | Cap | 2 years basic | 2 years basic | No cap (contributions) | | Payment timing | 14 days after end | 14 days after end | Monthly (ongoing) | | Min. service | 1 year | 1 year | Day 1 (DEWS) | **What Is Excluded from the Gratuity Calculation?** Regardless of which free zone you work in, only your basic salary is used to calculate gratuity. The following are all excluded: - Housing allowance - Transport allowance - Education allowance - Food allowance - Annual performance bonuses - Sales commissions (in most interpretations) - Overtime pay - Any in-kind benefits This makes the basic salary component of your compensation package critically important for long-term financial planning. When reviewing a job offer in any UAE free zone — whether in JAFZA, DMCC, DIFC, or SAIF Zone — always ask for the basic salary figure specifically, not just the total package. **Payment Timeline and Employer Obligations** Under UAE federal law, gratuity and all other end-of-service entitlements must be paid within 14 days of the contract end date. Failure to pay on time entitles the employee to file a complaint with the relevant free zone authority (e.g., JAFZA Labour Affairs, DMCC Employment Services) or with MOHRE. For DIFC employees, DEWS contributions are made monthly so there is no lump-sum settlement required. **Practical Tips When Using This Calculator** Enter your basic monthly salary only (not total package), select your free zone, and input your exact employment dates. The calculator auto-selects the DEWS mode for DIFC employees and the standard federal formula for all other free zones. Use the "Try sample" button to see a worked example with 6+ years of service. Always verify the final amount with your employer or the relevant free zone authority before signing any settlement. If you believe the amount offered is incorrect, request a written breakdown and compare it against this calculator. *Disclaimer: This tool is for estimation purposes only. Final gratuity amounts depend on your specific employment contract, any amendments thereto, and the policies of your free zone authority. Not legal advice. Verify with JAFZA Labour Affairs, DMCC Employment Services, DIFC Courts, MOHRE, or a qualified UAE legal professional for your specific case.*

Frequently Asked Questions

Do UAE free zone employees get gratuity?+
Yes. Employees working in UAE free zones are generally entitled to end-of-service gratuity. Most free zones — including JAFZA, DMCC, DAFZA, SAIF Zone, and DDA — follow the UAE Federal Labour Law formula: 21 days of basic salary per year for the first 5 years, and 30 days per year thereafter, capped at 2 years of basic salary. DIFC is the main exception, using the DEWS contribution scheme instead.
How is JAFZA gratuity calculated?+
Jebel Ali Free Zone (JAFZA) follows the UAE federal gratuity formula. Employees receive 21 days of basic salary per year for the first 5 years of service, and 30 days per year for each additional year beyond 5. The total is capped at 2 years of basic salary. Calculation is based on the last basic wage only — housing, transport, and other allowances are excluded.
How does DMCC gratuity work?+
DMCC (Dubai Multi Commodities Centre) employees are covered by UAE Federal Decree-Law No. 33 of 2021 for end-of-service gratuity. The standard formula applies: 21 days per year for years 1–5, then 30 days per year beyond 5 years. Gratuity is calculated on basic salary only, with a maximum cap of 2 years' basic salary. The employer must pay within 14 days of the contract end date.
What is DIFC DEWS and how is it different from regular gratuity?+
DIFC (Dubai International Financial Centre) replaced traditional lump-sum gratuity with the DEWS (Workplace Savings Scheme) in February 2020. Instead of a payment at the end of employment, the employer contributes monthly into a managed investment account: 5.83% of basic salary for the first 5 years and 8.33% for years beyond 5. The balance is portable and accessible earlier than under the traditional scheme. Employees who had service before February 2020 may also have legacy gratuity accrued under the old rules.
Is free zone gratuity calculated differently from mainland UAE?+
For most UAE free zones, gratuity is calculated using the same federal formula as mainland employers — 21 days per year (years 1–5) and 30 days per year (beyond 5 years), capped at 2 years of basic salary. The main exceptions are DIFC (DEWS scheme) and ADGM (Abu Dhabi Global Market), which have their own workplace savings schemes. Always verify with your specific free zone authority for any zone-specific policies.
What is the gratuity cap in UAE free zones?+
Under UAE federal law, the total end-of-service gratuity — regardless of years of service — cannot exceed 2 years of basic salary. For example, an employee earning AED 15,000/month basic salary has a maximum gratuity cap of AED 360,000 (AED 15,000 × 24 months). This cap applies in JAFZA, DMCC, SAIF Zone, DAFZA, and all other free zones that follow federal rules.
What is the SAIF Zone gratuity calculation?+
Sharjah Airport International Free Zone (SAIF Zone) follows UAE federal labour law for end-of-service gratuity. The formula is the same as the federal standard: 21 days per year for the first 5 years and 30 days per year beyond 5 years, based on the last basic salary, capped at 2 years. Verify current rules with SAIF Zone's HR authority for any zone-specific updates.