Free Zone Gratuity Calculator 2025
Enter your basic salary, employment dates, and other details below to calculate your end-of-service gratuity for 2025 in UAE free zones.
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Results are estimates only and should not be considered legal advice.
Your 2025 Guide to Free Zone Gratuity: DMCC, JAFZA, ADGM, DIFC & More
Working in one of the UAE’s 47 free zones, including Dubai’s dynamic hubs? Gratuity is the lump-sum payment you receive at the end of your employment, recognizing your dedication and service. In 2025, key zones like DIFC, DMCC, JAFZA, and ADGM have their own rules, though most follow the MOHRE gratuity formula under UAE Labour Law. Our end-of-service (EOS) calculator on this page supports JAFZA gratuity calculation, ADGM, DMCC, DAFZA, and RAKEZ etc. DIFC (DEWS) is excluded due to variable employer-based contributions—see DIFC section below for details.
Our UAE Free Zone Gratuity Calculator factors in part-time roles and the impact of termination for a more accurate calculation in UAE free zones.
Working in a UAE free zone? Let us guide you in understanding the gratuity payment you deserve!
Free Zone Gratuity Calculation Formula (2025)
| Free Zone | Gratuity for First 5 Years | Gratuity After 5 Years | Maximum Limit | Additional Notes |
|---|---|---|---|---|
| DIFC | 5.83% of basic salary via DEWS | 8.33% of basic salary via DEWS | No cap on DEWS contributions; pre-2020 gratuity capped at 2 years’ basic salary | DEWS mandatory post-Feb 2020; employer contributions of 5.83%–8.33% replace traditional gratuity |
| DMCC | 21 days of basic salary per year | 30 days of basic salary per year | Capped at 2 years’ basic salary | Follows UAE Labour Law & MOHRE guidelines; prorated for part-time staff |
| JAFZA | 21 days of basic salary per year | 30 days of basic salary per year | Maximum of 2 years’ basic salary | Requires JAFZA Labour Affairs approval; official calculator available via Dubai Trade |
| ADGM | 21 days of basic salary per year | 30 days of basic salary per year | No upper limit since April 1, 2025 | Calculated under ADGM Regulations; pension or savings scheme optional instead of gratuity |
| DAFZA | 21 days of basic salary per year | 30 days of basic salary per year | Capped at 2 years’ basic salary | Follows MOHRE gratuity calculator rules; flexible payment schedules |
| DWTC | 21 days of basic salary per year | 30 days of basic salary per year | Capped at 2 years’ basic salary | Uses an internal HR system for gratuity settlements |
| RAKEZ | 21 days of basic salary per year | 30 days of basic salary per year | Capped at 2 years’ basic salary | Requires manual gratuity calculations under RAKEZ guidelines |
Legal & Contractual Overview
| Free Zone | Legal Basis | Contract Types | Dispute Channel |
|---|---|---|---|
| DIFC | DIFC Law, DEWS-funded | Limited/Unlimited | DIFC Courts |
| DMCC | UAE Labour Law | Limited | DMCC Labour Affairs (conciliation) → Dubai Courts |
| JAFZA | JAFZA Rules, UAE Law | Limited / Legacy unlimited | JAFZA Labour Affairs (conciliation) → Dubai Courts |
| ADGM | ADGM Regulations | Limited / Unlimited (rare) | ADGM Courts |
| DAFZA | UAE Labour Law | Limited | DAFZA Dispute Forum |
| DWTC | UAE Labour Law, HR Guidelines | Limited | DWTC Admin / MOHRE |
| RAKEZ | UAE Labour Law, RAKEZ | Limited / Hybrid | RAKEZ Dispute Unit |
Note: If your contract is marked as “unlimited” after the Feb 2, 2022 cutoff, it does not affect the gratuity calculation — the payout is the same as under a fixed-term contract in free zones.
Employers must pay all end-of-service dues within 14 days of contract end (UAE Labour Law, Art. 53).
Looking for detailed mainland UAE gratuity rules? Visit our main UAE Gratuity Calculator guide.
Free Zones vs Mainland UAE (Key Differences)
| Feature | Free Zones | Mainland UAE |
|---|---|---|
| Governing Law | Free Zone rules & UAE Labour Law | UAE Labour Law |
| Contract Type | Mostly fixed-term | Fixed-term post-2022 |
| Calculator Support | All MOHRE-based zones supported; ADGM supported (no 2-year cap); DIFC excluded (DEWS only) | Fully supported |
| Savings Schemes / Alternatives | DIFC uses DEWS; ADGM allows optional pension/savings scheme | Optional MoHRE savings scheme (voluntary for employers) |
Not all free zone employees fall under standard contracts. Learn how UAE gratuity changes in special scenarios like retirement, termination for cause, or death.
Private-sector employees must also prepare for rare cases like shutdowns or absconding — see our Company Shutdown Gratuity UAE: Absconding & Suspension (2025 Guide) for full details
ADGM Gratuity and Pension Options in 2025
The Abu Dhabi Global Market (ADGM) operates under its Employment Regulations. It allows both limited (fixed) and, in exceptional cases, unlimited contracts (typically up to 4 years, renewable). Full-time employees with at least one year of continuous service are entitled to gratuity of 21 days’ basic salary per year for 1–5 years, 30 days per year thereafter. There is no limit or cap of two years’ basic salary in this case. Part-time employees receive gratuity proportional to their hours worked, calculated based on their basic salary, subject to employer and ADGM verification. Under ADGM Employment Regulations 2024 (effective 1 Apr 2025), employers may offer a pension or savings scheme instead of EOS gratuity. If an employee opts in, EOSG under s.61(2) doesn’t apply unless the employer agrees otherwise for such non standard cases employee need to contact HR for gratuity amount estimation.
Example:
Fatima worked part-time (50% hours) in ADGM for 5 years, with a part-time basic salary of AED 5,000/month (equivalent to AED 10,000/month for full-time). Her gratuity = 5 years × 21 days × (5,000 ÷ 30) = AED 17,500.
DIFC Gratuity Rules & DEWS System
Since 1 February 2020, the Dubai International Financial Centre (DIFC) no longer uses the traditional end-of-service gratuity formula. Expatriate employees are enrolled in the DEWS (Employee Workplace Savings) scheme, where employers contribute a percentage of basic salary every month.
- Contribution rates: 5.83% of monthly basic salary for employees with under 5 years’ total DIFC service; 8.33% once service reaches 5 years or more.
- Basic salary rule: For contribution purposes, basic salary must be at least 50% of total pay.
- Part-time employees: Contributions are prorated to hours worked, based on proportional basic salary.
- Legacy gratuity: Service completed before 1 February 2020 is preserved as a legacy gratuity balance and paid at exit using the final basic salary.
Example: With a basic salary of AED 15,000, monthly DEWS is AED 875 during the first five years (5.83%) and AED 1,250 from year six (8.33%).
Note: DIFC differs from JAFZA, DMCC, and ADGM: funding is monthly rather than calculated only at end of service. Understand DIFC DEWS gratuity 2025— rates, legacy balances, UAE-national top-ups, fund options/ performance, & examples with HR checklist see our full guide: https://gratuitycalculator-uae.org/difc-dews-gratuity/.
DMCC Gratuity Rules
At DMCC, gratuity is calculated according to the UAE Labour Law, where employees on fixed-term contracts are entitled to end-of-service benefits after completing one year of service. The gratuity is calculated at 21 days’ basic salary for each of the first five years and 30 days for every additional year thereafter, capped at a maximum of two years’ basic salary. Part-time employees receive gratuity proportional to their hours worked, calculated based on their basic salary, subject to employer and DMCC verification. Unpaid absence days don’t count towards service. Probation periods count toward gratuity eligibility if one year of service is completed.
Example:
Sara worked part-time (80% hours) at DMCC for 4 years, with a part-time basic salary of AED 8,000/month (equivalent to AED 10,000/month for full-time). Her gratuity is calculated as 4 years × 21 days × (8,000 ÷ 30), which equals AED 22,400.
Not sure how to calculate gratuity in UAE free zones like DMCC or RAKEZ? Our tool helps you estimate accurately. For DMCC employees, final gratuity calculations must be verified with DMCC authorities via www.dmcc.ae.
JAFZA Gratuity: Rules and Calculator
In JAFZA, the gratuity rules follow the UAE Labour Law, applicable to employees on fixed-term contracts. After completing one continuous year of service, an employee becomes eligible for 21 days’ basic salary per year for the first five years, and 30 days’ basic salary for each year beyond that, with the total gratuity payment capped at the value of two years’ basic salary. Part-time employees receive gratuity proportional to their hours worked, calculated based on their basic salary, though such contracts are less common in JAFZA and require verification by the employer and JAFZA’s Labour Affairs Section.
Example:
Khalid worked full-time in JAFZA for 6 years with a basic salary of AED 12,000/month. His gratuity is calculated as (5 years × 21 days + 1 year × 30 days) multiplied by (12,000 ÷ 30), resulting in AED 54,000.
Use our Free Zone Gratuity Calculator to compute gratuity according to JAFZA rules. See our detailed guide on JAFZA gratuity calculation with rules and worked examples.
Gratuity Across UAE’s 47 Free Zones
Free zones like JAFZA, DMCC, DAFZA, DWTC, RAKEZ, Sharjah Media City and Ajman Free Zone follow the UAE Labour Law (Federal Decree-Law No. 33 of 2021) regarding end-of-service gratuity. They use fixed-term contracts, typically up to three years and renewable. Employees who have served continuously for at least one year are entitled to 21 days’ basic salary annually for the first one to five years. For additional years, 30 days per year, with the total end-of-service settlement capped at two years’ basic salary. Part-time employees receive gratuity proportional to their hours worked, calculated based on their basic salary, subject to verification by employers and respective free zone authorities. Administrative processes may differ (e.g., DAFZA supports flexible pay cycles; RAKEZ may require manual calculations). Exceptions are the DIFC, which uses the mandatory DEWS plan for post-2020 service, and ADGM, which offers an optional pension plan as an alternative to EOS benefits.
For the federal legal framework behind free zone gratuity, see our UAE Labour Law 2025 guide
UAE’s Optional Federal End-of-Service Savings Scheme
In 2023, the UAE introduced an optional savings-based gratuity scheme available to private sector and free zone employees. Participation by employers is voluntary—they may choose to contribute monthly to a professionally managed fund instead of making a lump-sum gratuity payment upon an employee’s exit. These funds are regulated and overseen by the UAE Securities and Commodities Authority along with MoHRE. Employees enrolled in the scheme receive their accumulated savings plus any investment returns, rather than the standard end-of-service gratuity.
Our embedded Free Zone Gratuity Calculator is aligned with UAE Labour Law and MoHRE guidelines. Since alternative schemes like DIFC (DEWS) and other workplace savings plans follow non-uniform, employer-specific models, please visit our Service Portfolio to explore customized gratuity calculation services.
FAQs About Free Zone Gratuity
Legal sources (checked: Aug 2025)
Calculate Your Free Zone Gratuity Now
Use our Free Zone Gratuity Calculator above to estimate your end-of-service benefits using the official gratuity formula as per UAE Labour Law and ADGM regulations. Check your eligibility and plan your finances with confidence!
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Author Bio
Articles under the name Noor Al Emarat are published by the Gratuity Calculator UAE Editorial Team. The team combines expertise in gratuity calculations, HR consulting, and UAE labour law compliance to provide clear, reliable information. From end-of-service benefits to special cases and dispute resolution, our content is designed to guide UAE employees and employers with accuracy and trust.
