Free Zones Gratuity Calculator UAE (2025) – DMCC, JAFZA, ADGM (No Cap)
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: DIFC, DMCC, JAFZA, ADGM
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 | Varies (ADGM/DIFC have exceptions) | Fully supported |
| DEWS / Alternatives | Some (e.g., DIFC, ADGM) | Optional Scheme by MoHRE |
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
Early 2020, DIFC employers are required to register their expatriate staff in the Employee Workplace Savings (DEWS) program. For the first five years of employment, contributions are calculated at 5.83% of the basic salary, rising to 8.33% for those with longer service. This system ensures that employees receive savings contributions instead of the traditional gratuity payment. For example, an employee with a basic salary of AED 10,000 per month and 3 years of service receives a monthly DEWS contribution of AED 583 (5.83% of AED 10,000).
Part-time employees receive prorated contributions based on hours worked relative to a full-time schedule. For instance, a part-time employee working 50% of full-time hours with a proportional basic salary of AED 5,000 per month would receive AED 291.50 per month (5.83% of AED 5,000).
For service prior to February 1, 2020, End of Service Gratuity (ESG) applies, calculated at 21 days’ basic salary per year for 1–5 years of service and 30 days’ basic salary per year thereafter, prorated for partial years and capped at two years’ total remuneration (basic salary plus allowances). Employees need to complete a minimum of one continuous year of service to be eligible.
Example:
Ahmed works full-time in DIFC with a AED 15,000 basic salary for 6 years. For the first 5 years, his annual DEWS contribution is 5.83% × 15,000 = AED 875/month, and for the 6th year, 8.33% × 15,000 = AED 1,250/month. His total DEWS savings accumulate accordingly.
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.
Legal sources (checked: 16 Aug 2025)
See our detailed guide on JAFZA gratuity calculation with rules and worked examples.
Gratuity Across UAE’s 47 Free Zones
Free zones like 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, and 30 days per year for any additional years, with the total end-of-service settlement capped at two years’ basic salary—excluding allowances. 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.
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
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.
