Introduction
UAE free zones set their own employment regulations and define unique rules for calculating end-of-service gratuity. Each free zone determines EOSB based on basic salary, service duration, and contract terms. Most free zones follow a structure similar to MOHRE, but their internal policies, caps, and calculation methods differ. Referring to UAE FreeZone Gratuity Guides helps employees and employers understand each zone’s regulation, ensuring accurate and compliant gratuity calculations under its specific labour framework.
1. JAFZA Gratuity Calculator Guide
JAFZA applies independent employment regulations and calculates gratuity based on basic salary and total service duration. For the first five years, the system awards 21 days of basic wage per year. After five years, it awards 30 days of basic wage per year. The calculation excludes allowances, and it adds incomplete years proportionately
2. DMCC Gratuity Calculator Guide
DMCC applies a MOHRE-style gratuity structure and calculates entitlement using basic salary as the core factor. The system awards 21 days of basic salary for each of the first five years and 30 days per year after that. It excludes benefits in cases of misconduct and includes pro-rated service months in the final calculation.
3. SAIF Zone Gratuity Calculator Guide
The SAIF Zone employment framework protects gratuity rights. Calculation focuses strictly on basic salary and accumulated service years. The gratuity for the first five years is 21 days’ basic wage per year. 30 days’ basic wage per year applies for periods beyond five years. The maximum cap is 24 months’ basic salary, which ensures a limit in accordance with UAE labor standards.
4. DDA/TECOM Gratuity Calculator Guide
DDA Free zone (Dubai Internet City, Media City, TECOM Parks) follows structured gratuity entitlement. Entitlement is calculated from basic salary and total years of continuous service. 21 days’ basic wage per year applies for the first five years and 30 days thereafter. A 24-month salary cap applies on gratuity payout, which is an essential part of free zone regulations.
5. DIFC Gratuity Calculator Guide
The DIFC operates a modern DEWS scheme, where the traditional gratuity has been replaced with a retirement-style savings plan. The employer deposits a fixed percentage of monthly wages: 5.83% for 0-5 years and 8.33% for 5+ years. The traditional gratuity formula is still valid for pre-2020 service years. DEWS contributions accumulate in the employee investment fund, which forms the final end-of-service entitlement.