JAFZA Gratuity 2025- Exact Gratuity Calculation Rules
If you work inside Jebel Ali Free Zone (JAFZA), you should know exactly how your end-of-service (EOS) is calculated. This guide keeps it practical: a clear gratuity calculation formula, quick steps, worked examples, and tools to verify your result.
Quick note: JAFZA gratuity follows UAE Labour Law. Not every calculator reflects real-world scenarios like resignation vs termination, unpaid leave, or part-time service. The calculator here factors in those details to give you a precise JAFZA gratuity calculation in line with 2025 rules. If you’re in ADGM (where the two-year cap doesn’t apply) or in any free zone following UAE Labour Law, use our Free-Zone Gratuity Calculator.
For mainland UAE or general EOS cases, try our UAE Gratuity Calculator.
How the JAFZA gratuity calculation works (2025 rules)
- Eligibility starts after 1 full year of continuous service
- Years 1–5: 21 days of last basic salary per year
- Beyond 5 years: 30 days of the last basic salary for each additional year
- Unpaid leave days are excluded from service time
- Overall cap: total EOS may not exceed two years’ wage
- Fractions of a year are paid pro-rata (after you’ve completed the first full year).
Gratuity uses the last drawn basic salary only (allowances excluded). Employers must pay all EOS entitlements within 14 days of the contract end date. For a quick check, try our Free Zone Gratuity Calculator.
Quick steps to do your gratuity calculation
- Confirm you’ve completed ≥1 year of service
- Note your last basic salary (AED)
- Count total service from start date to last working day, minus unpaid leave
- Apply 21-day rate for the first five years, then 30-day rate beyond five
- Ensure the result does not exceed two years’ wage
- Validate with an online tool
Worked examples (simple and realistic)
Example A — Resignation after 3 years
JAFZA Gratuity Calculation of Ms. Aamir (Accountant) : Basic AED 4,000; service 3.0 years → 21 days × 3 = 63 days ≈ 2.1 months of basic pay → ~AED 8,400
Example B — Termination after 8 years
JAFZA Gratuity Calculation of Mr. Naheed (: Basic AED 12,000; service 8.0 years → (21 days × 5) + (30 days × 3) = 105 + 90 = 195 days ≈ 6.5 months → ~AED 78,000. Check the two-year cap: 24 months × AED 12,000 = AED 288,000 cap, so payout stands at AED 78,000 (no cap hit)
Factors that change your number
- Part-time or reduced hours: EOS is typically pro-rated to your work ratio
- Unpaid leave: Excluded from service days; double-check long leaves
- Salary makeup: Use basic salary only; do not include allowances or overtime
- Contract + exit reason: Resignation vs termination doesn’t change the core formula, but timing, notice, and lawful offsets in the final settlement can affect the net amount
- Very long service: Always verify against the two-year-wage cap
Common mistakes to avoid
- Using total salary instead of basic salary
- Forgetting to subtract unpaid leave from service time
- Ignoring the two-year cap on very long service
- Relying only on a “quick estimate” without checking your specific inputs
Free-zone variations at a glance
| Zone | EOS system (2025) | Covered by our calculator? | What to do |
|---|---|---|---|
| JAFZA | UAE Labour Law (21/30-day model; cap applies) | Yes | Use Free-Zone Calculator |
| DMCC | UAE Labour Law (21/30-day model; cap applies) | Yes | Use Free-Zone Calculator |
| ADGM | Own regulations; two-year cap not enforced | Yes (ADGM mode) | Use Free-Zone Calculator |
| DIFC | DEWS (funded savings plan; individualized) | No | Request DEWS statement from HR/plan provider |
Tools and helpful links (trusted and quick)
- Main Tool: Gratuity Calculator UAE — Our fast, mobile-friendly calculator for mainland employees. Based on UAE Labour Law, it gives you a reliable estimate in seconds.
- Free Zones: JAFZA, DMCC & ADGM Overview — All apply UAE Labour Law rules (with ADGM exempt from the 2-year cap). Use our Free-Zone Calculator to get precise results for your zone.
- DIFC (Special Case) — DIFC runs under the DEWS savings scheme, which is outside gratuity law. You’ll need your DEWS account statement for accurate figures. See our DIFC Gratuity Rules & DEWS System for detail
- Domestic Staff: Domestic Worker Gratuity — Covered by a separate law (Federal Decree-Law No. 9 of 2022). Different calculation formula applies.
- Complex Cases & Next Steps — For disputes, employees can approach JAFZA’s Labour Affairs department, but it’s always best to double-check your EOS using our Free-Zone Calculator and the detailed rules here. For unique scenarios, see our Special Cases Guide (death, secondment, change of role, etc.) and our dedicated guide on Shutdown, Absconding & Suspension.
FAQs
Conclusion
Run your gratuity calculation with your real inputs—basic pay, exact service dates, and any unpaid leave—and check the two-year cap where it applies. For all free zones including JAFZA and DMCC, use our Free-Zone Gratuity Calculator; it factors in resignation vs termination, part-time ratios, unpaid leave, the 2 Feb 2022 law cut-off, and ADGM’s no-cap rule. (DIFC uses the DEWS savings scheme, so request your statement from HR.) This keeps your result accurate, transparent, and aligned with 2025 rules.
Author Bio
Written by Noor Al Emarat on behalf of the Gratuity Calculator UAE Editorial Team. Our team specializes in gratuity calculations, HR compliance, and UAE labour law, making workplace rules simple for employees and employers.
