A gratuity calculator Sharjah helps employees estimate their end of service benefits according to UAE labour law. If you work in Sharjah under a mainland private-sector company, the gratuity rules are the same as the federal UAE labour law.

In simple words, this calculator shows how much gratuity your employer must pay when your job ends. It calculates the amount based on your basic salary, years of service, and contract status. Because of this, it helps you avoid mistakes and gives you a clear idea of your final settlement.

Moreover, using a gratuity calculator saves time and gives instant results, especially when you are planning resignation or job change.

How to Calculate Gratuity in Sharjah

To understand how to calculate gratuity in Sharjah, you must follow the standard UAE labour law formula. The calculation is based only on basic salary, not on allowances such as housing or transport.

Standard Gratuity Calculation Rules

• For the first 5 years of service:
  21 days of basic salary for each year
  
• For service above 5 years:
  30 days of basic salary for each additional year
  

However, the total gratuity amount must not exceed two years’ basic salary.

Simple Explanation

First, divide your monthly basic salary by 30 to find your daily salary.
Then, multiply it by the eligible number of gratuity days and your total years of service.

As a result, you get your total gratuity amount as per Sharjah labour law.

Does Sharjah Have Different Gratuity Rules?

No. Sharjah follows federal UAE labour law for gratuity calculation. Therefore, the rules are the same as Dubai and Abu Dhabi for mainland companies.

However, some free zone companies in Sharjah may follow separate employment regulations. For this reason, always confirm whether your employer is under mainland UAE or a free zone authority.

Why Use a Sharjah Gratuity Calculator?

A gratuity calculator in Sharjah helps you:

• Calculate gratuity accurately
  
• Understand your legal entitlement
  
• Plan your finances after job completion
  

Most importantly, it gives clarity and confidence before discussing final settlement with your employer.

A gratuity calculator Abu Dhabi helps private-sector employees estimate their end of service benefits under UAE labour law. Abu Dhabi follows federal UAE labour law, so gratuity rules are the same as other mainland emirates.

This calculator uses:

• Basic salary only
  
• Total years of service
  
• UAE-approved gratuity formula
  

It gives a quick and clear estimate without manual calculation errors.

End of Service Calculator Abu Dhabi

An end of service calculator Abu Dhabi calculates the amount an employee receives when their job ends. This includes gratuity as the main component of end of service benefits.

Under UAE law:

• Employees become eligible after completing 1 year of service
  
• Gratuity is paid by the employer
  
• The calculation follows standard UAE labour law rules
  

This calculator is useful for resignation, termination, or contract completion.

UAE Gratuity Calculator Abu Dhabi

A UAE gratuity calculator Abu Dhabi applies UAE labour law rules specifically for employees working in Abu Dhabi mainland companies.

Key points:

• Gratuity is calculated on basic salary, not gross salary
  
• Allowances like housing or transport are excluded
  
• Total gratuity is capped at two years’ basic salary
  

The calculator ensures compliance with UAE labour regulations.

How to Calculate Gratuity in Abu Dhabi

To calculate gratuity in Abu Dhabi manually, follow these steps:

1. Find your basic monthly salary
   
2. Divide it by 30 to get the daily salary
   
3. Apply UAE gratuity rules:
   
   • First 1–5 years: 21 days’ basic salary per year
     
   • After 5 years: 30 days’ basic salary per year
     
4. Make sure total gratuity does not exceed 24 months of basic salary
   

This method applies to both limited and unlimited contracts under current UAE law.

End of Service Gratuity Calculator Abu Dhabi

An end of service gratuity calculator Abu Dhabi simplifies the calculation by applying the correct formula automatically.

It helps employees:

• Avoid calculation mistakes
  
• Understand their legal entitlement
  
• Plan resignation or job change confidently
  

The calculator follows official UAE labour law guidelines.

Gratuity Calculator in Abu Dhabi – Important Notes

• Abu Dhabi uses federal UAE labour law
  
• Free zones may follow separate rules
  
• Gratuity applies only to private-sector employees
  
• Public sector employees follow different benefit systems
  

Always confirm no matter if your employer falls under mainland UAE or a free zone authority.

Frequently Asked Questions (FAQs)

1. Is gratuity law different in Abu Dhabi?

No. Abu Dhabi follows the same UAE labour law for gratuity.

2. Is gratuity calculated on basic or total salary?

Gratuity is calculated only on the basic salary.

3. Who is eligible for gratuity in Abu Dhabi?

Any employee who completes at least one year of service is eligible.

4. How can I calculate gratuity in Abu Dhabi?

You can use an end of service gratuity calculator or apply the UAE formula.

5. Do free zones in Abu Dhabi follow the same rules?

Some free zones have different rules, so always check your contract.

Final Note

Using a gratuity calculator in Abu Dhabi is the easiest and safest way to estimate your end of service benefits. It saves time, reduces errors, and ensures your calculation follows UAE labour law accurately.

Explanation in Simple Words

The UAE gratuity law explains how employees receive end of service benefits when their job ends. Employers pay this amount as gratuity to eligible private-sector employees under the Dubai labour law. The calculation depends on your basic salary, years of service, and the type of contract you hold.

In simple terms, gratuity rewards you financially for the time you worked in the UAE.

What Is Gratuity Under UAE Employment Rules?

Gratuity as per UAE labour law is calculated only on the basic salary, not on allowances such as housing or transport. The law clearly defines how gratuity should be paid for:

• Limited contracts
  
• Unlimited contracts
  
• Resignation
  
• Termination
  

This system ensures fairness for both employees and employers.

UAE New Labour Law 2022 – Gratuity Changes

The new gratuity law in UAE 2022 introduced clarity and consistency. Under the UAE new labour law 2022 gratuity system:

• Gratuity is calculated the same way for limited and unlimited contracts
  
• Employees become eligible after completing 1 year of service
  
• Calculation rules are standardized across most emirates
  

Because of this, the new labour law gratuity calculation is now simpler and more transparent.

How Is Gratuity Calculated as per UAE Law?

Standard UAE Labour Law Gratuity Calculation

According to rules:

• For the first 5 years:
  21 days of basic salary per year
  
• After 5 years:
  30 days of basic salary per year
  

However, total gratuity must not exceed 2 years’ basic salary.

This method is also known as gratuity calculation as per UAE labour law.

Gratuity Calculation Example (Example)

If your:

• Basic salary = AED 5,000
  
• Service = 3 years
  

Daily salary = 5,000 ÷ 30
Gratuity = 21 days × daily salary × years of service

This method applies to how to calculate gratuity as per UAE law and how to calculate gratuity in UAE labour law.

“Labor” vs “Labour” – Is There Any Difference?

You may see both terms:

• UAE labor law gratuity
  
• UAE labour law gratuity
  

Both mean the same thing. “Labor” is American English, while “labour” is British English. Google treats both keywords equally.

End of Service Benefits Under UAE Law

End of service benefits UAE law includes:

• Gratuity payment
  
• Final settlement
  
• Unpaid salary
  
• Leave encashment
  

This full amount is often called final settlement UAE labour law.

Basic Salary Percentage

Gratuity is calculated only on basic salary, not on gross salary. The basic salary percentage in UAE labour law usually ranges between 50% to 70% of total salary, depending on the contract.

This rule directly affects UAE law gratuity calculation.

Gratuity Calculation for Limited Contracts

Under labour law gratuity calculation for limited contract:

• Same formula applies as unlimited contracts (post-2022 law)
  
• Completion of at least 1 year is mandatory
  

This change simplified the system significantly.

Dubai Gratuity Law & Emirate Variations

The Dubai gratuity law follows federal UAE labour law. However, some free zones may apply separate regulations. Always check if your employer falls under:

• Mainland UAE
  
• Free zone authority
  

For mainland companies, Dubai labour law gratuity calculation follows standard UAE rules.

UAE Law Gratuity Calculator – Why Use One?

A UAE law gratuity calculator helps you:

• Avoid calculation mistakes
  
• Get instant results
  
• Understand your entitlement
  

It is especially useful for employees planning resignation or job change.

What Is Labour Law End of Service?

Labour law end of service refers to all payments an employee receives when employment ends. Gratuity is the main part of this, but not the only one.

Frequently Asked Questions (FAQs)

What is gratuity law in UAE?

It is a legal framework that defines how end of service benefits are calculated and paid.

How to calculate gratuity as per UAE labour law?

Multiply eligible service years by daily basic salary and apply the 21/30 day rule.

Is gratuity paid on basic or gross salary?

Only basic salary is used.

Important Note About Other Countries

This guide focuses on UAE only. Rules such as Qatar labour law gratuity calculation or Kuwait labour law gratuity calculation are different and should not be mixed with UAE laws.

Final Thoughts

The UAE labour law end of service gratuity calculation system is designed to protect employee rights while maintaining fairness for employers. By understanding the rules, you can confidently calculate your gratuity and plan your future.

For best results, always double-check your basic salary and service period before using any gratuity calculator.

INTRO

Dubai Gratuity Calculator helps employees calculate their end of service benefits accurately according to Dubai labour law. More specifically, This end of service calculator Dubai is designed for private sector employees, free zone workers, and professionals working under Dubai employment contracts. Therefore, Use this online gratuity calculator Dubai to estimate your gratuity amount based on your basic salary, service duration, and contract type.

How Does Gratuity Work in Dubai?

How is Gratuity Calculated in Dubai?

Gratuity in Dubai is calculated based on basic salary only, excluding allowances. This is because, the calculation follows Dubai labour law rules.

• First 1-5 years: 21 days’ basic salary per year
  
• After 5 years: 30 days’ basic salary per year
  
• Maximum cap: 2 years of basic salary
  

This method is also known as gratuity computation in Dubai and applies to most private sector employees.

Dubai Gratuity Calculation Formula

Dubai Gratuity Calculation Formula

Daily wage = Basic salary ÷ 30

Gratuity amount =

• (21 × daily wage × years up to 5)
  
  • (30 × daily wage × years after 5)
    

This calculation of gratuity Dubai follows the official Dubai labour law gratuity calculation method.

Use Our End of Service Calculator Dubai

End of Service Gratuity Calculator

this Dubai end of service gratuity calculator instantly calculates your total gratuity amount by asking for:

• Basic salary
  
• Total years of service
  
• Contract type
  
• Unpaid leave days (if any)
  

This Dubai gratuity calculator online is accurate, fast, and easy to use.

Dubai Free Zone & Authority Gratuity

Dubai Free Zone & Authority Gratuity Calculation

Gratuity rules may vary slightly for Dubai authorities and free zones such as:

• Dubai Development Authority (DDA)
  
• Other Dubai Free Zones
  

For such cases, our tool supports Dubai Development Authority gratuity calculator logic and Dubai free zone gratuity calculation rules.

Dubai Salary & Settlement Tools

Dubai Salary & Settlement Calculators

Along with gratuity, you may also need:

• Dubai salary calculator
  
• Dubai settlement calculator
  
• Salary breakup and final settlement estimation
  

These tools help you understand your end of service Dubai payment clearly.

Important Notes

• Gratuity is calculated on basic salary only
  
• Allowances are not included
  
• Government employees follow separate rules
  
• Labour office Dubai may provide official clarification if required

Calculate Your Dubai Gratuity Now

Use our Gratuity Calculator Dubai to get instant and accurate results according to Dubai gratuity law.
Best of all, No signup required. 100% free and updated as per Dubai labour law.

Introduction

End of Service Benefit (EOSB) is a legal right of employees working in the UAE. No matter if an employee works in Dubai, Abu Dhabi, Sharjah, or any other emirate, an end of service calculator UAE helps estimate the gratuity amount according to UAE Labour Law. This calculator follows MOHRE regulations and provides accurate results based on basic salary and total service duration.

What Is an End of Service Calculator in UAE?

An end of service calculator UAE is an online tool that calculates gratuity using an employee’s basic salary, joining date, and last working date. It is also known as an EOSB calculator or end of service benefit calculator. The tool delivers instant and reliable results without manual calculations.

How the EOSB Calculator UAE Works?

The EOSB calculator UAE calculates the total service period and applies the official UAE Labour Law formula. The system automatically checks eligibility and applies the correct gratuity rate based on the number of completed service years.

UAE End of Service Gratuity Formula (MOHRE Based)

According to UAE Labour Law:

• For 1 to 5 years of service:
  21 days of basic salary per year
  
• For more than 5 years of service:
  First 5 years: 21 days per year
  After 5 years: 30 days per year
  

Daily salary = Basic salary ÷ 30
The maximum gratuity is capped at two years of total basic salary.

End of Service Calculator Abu Dhabi

The end of service calculator Abu Dhabi follows the same MOHRE-based formula. There is no separate federal gratuity law for Abu Dhabi. The UAE end of service calculator applies equally to employees working in both Dubai and Abu Dhabi.

Which Salary Is Used for EOSB Calculation?

The end of service gratuity calculator UAE considers only the basic salary:

• ✔ Basic salary is included
  
• ✖ Allowances such as housing or transport are excluded
  

Allowances may appear as input fields, but they do not affect gratuity calculations.

Who Is Eligible for End of Service Benefits in UAE?

An employee becomes eligible for EOSB if:

• At least one year of continuous service is completed
  
• The employment contract is valid
  
• Termination is not due to misconduct
  

Gratuity applies in cases of resignation, contract completion, or lawful termination.

Why Use an Online End of Service Benefit Calculator?

• MOHRE-compliant calculations
  
• No manual errors
  
• Instant results
  
• Valid for Dubai, Abu Dhabi, and all UAE emirates
  
• Supports deductions such as unpaid leave and notice pay

Conclusion

An end of service calculator is an essential tool for employees to understand their EOSB entitlement clearly and accurately. Whether working in Abu Dhabi, Dubai, or another emirate, this calculator ensures reliable gratuity estimation according to UAE Labour Law and supports better end-of-service planning. The calculator shows allowances for reference, but it does not include them in gratuity calculations under UAE Labour Law.

DIFC Gratuity Overview

The DIFC Gratuity Calculator helps employees and employers understand end-of-service benefits under DIFC Employment Law No. 2 of 2019. DIFC does not follow the MOHRE gratuity system. Instead, DIFC uses a contribution-based model known as DEWS (DIFC Employee Workplace Savings Scheme).
Under this system, employers make monthly contributions based on the employee’s basic salary. Traditional gratuity applies only to service completed before February 2020, known as accrued gratuity.

What Is DEWS (DIFC Employee Workplace Savings Scheme)?

DEWS is a mandatory savings scheme for DIFC employees. Employers contribute a fixed percentage of the employee’s monthly basic wage into the DEWS fund instead of paying a lump-sum gratuity at the end of service.

This system improves transparency and ensures employees receive benefits continuously during employment.

DIFC Eligibility Rules

Gratuity or DEWS contributions apply when:

• Employment falls under DIFC jurisdiction
  
• The employee holds a valid DIFC employment contract
  
• Service duration is properly recorded
  
• Termination is not due to gross misconduct
  

Both resignations and contract completions remain covered under DIFC rules.

DIFC Gratuity Formula (Post-DEWS – Current System)

Under DIFC Employment Law:

Monthly DEWS Contributions

• 0 to 5 years of service:
  ➝ 5.83% of monthly basic salary
  
• More than 5 years of service:
  ➝ 8.33% of monthly basic salary
  

✔ Contributions are paid monthly
✔ Allowances are not included
✔ Only basic salary is used

Legacy Gratuity (Pre-DEWS – Before Feb 2020)

For service completed before 1 February 2020, DIFC applies the traditional gratuity system:

• First 5 years: 21 days of basic salary per year
  
• After 5 years: 30 days of basic salary per year
  

This amount is calculated separately and added as accrued gratuity.

Service Duration Rules in DIFC

• Full calendar months count as complete service
  
• Partial months are calculated pro-rata
  
• Unauthorised absence reduces service duration
  
• Final calculation uses the last drawn basic salary
  

How the DIFC Gratuity Calculator Works

The calculator processes:

• Joining date & leaving date
  
• Monthly basic salary
  
• Service period split (pre-DEWS and post-DEWS)
  
• Applicable contribution rates
  
• Pro-rata service months
  

This ensures accurate DIFC-compliant EOSB results.

DIFC Example Calculation (DEWS-Based)

Monthly Basic Salary: 12,000 AED
Service Duration: 3 years
Applicable Rate: 5.83%

Annual Contribution
12,000 × 12 × 5.83% = 8,397.60 AED

Total for 3 Years
8,397.60 × 3 = 25,192.80 AED

This amount reflects the employer’s total DEWS contribution.

Important Exclusions

• Housing allowance ❌
  
• Transport allowance ❌
  
• Bonuses ❌
  
• Overtime ❌
  
• Commissions ❌
  

Only basic salary forms the calculation base.

Final Notes

DIFC follows a contribution-based end-of-service system (DEWS) instead of the traditional gratuity method used under MOHRE and most UAE freezones. For this reason, the standard UAE Gratuity Calculator does not apply to DIFC employees.

This DIFC guide is provided for information and understanding purposes only, to explain how DEWS contributions and accrued gratuity work under DIFC Employment Law. DIFC end-of-service benefits are calculated through monthly employer contributions and the DEWS platform, not through a one-time gratuity formula.

Employees should always verify their final entitlement through official DIFC records, employment contracts, and the DEWS portal.

The DDA Free zone Gratuity Calculator helps Dubai Media City, Internet City, Knowledge Park, Studio City, and all TECOM employees calculate their accurate end-of-service benefits using official DDA gratuity rules.
This calculator uses your joining date, leaving date, unpaid leave, basic salary, and notice deduction to generate an exact, transparent gratuity amount.

DDA Gratuity Framework

DDA/TECOM Free zones follow their own employment regulations, but gratuity rules remain closely aligned with UAE labour standards.

Gratuity is based entirely on:

• Basic salary (last drawn)
  
• Total years of continuous service
  
• Pro-rata calculation for incomplete years
  

Allowances never count toward gratuity.

Eligibility Requirements

✔ At least one full year of continuous service
✔ Gratuity payable on contract completion or natural resignation
✔ Gross misconduct may remove gratuity entitlement
✔ Unpaid leave does not count in service duration
✔ Incomplete years calculated pro-rata (monthly basis)

DDA Gratuity Formula (Exact & Official )

For the first 5 years

21 days of basic salary per year

After 5 years

30 days of basic salary per year

Maximum Cap

Gratuity cannot exceed 24 months of total wage

How Your DDA Gratuity Calculator Works

Your calculator uses these exact steps:

1. Joining Date → Leaving Date

• Total service days calculated
  
• Unpaid leave subtracted
  
• Final service duration converted into years + months + days
  

2. Basic Salary

• Last drawn basic salary
  
• Daily salary = Basic Salary ÷ 30
  

3. Gratuity Days

• First 5 years → 21 days per year
  
• Beyond 5 years → 30 days per year
  
• Incomplete year → pro-rata
  

4. Notice Deduction

If an employee fails to serve notice period → deducted from gratuity.

5. Final Calculation

Calculator applies:

• Pro-rata monthly calculation
  
• Rule-based gratuity days
  
• Maximum 24-month cap
  
• Notice pay deduction
  

Real Example (Fully Accurate)

Input

• Basic Salary: 6,000 AED
  
• Service Duration: 7 years
  
• Unpaid Leave: 0 days
  
• Notice Deduction: 0 AED
  

Step 1 – Daily Salary

6,000 ÷ 30 = 200 AED/day

Step 2 – First 5 Years

21 days × 200 AED = 4,200 AED (per year)

4,200 × 5 = 21,000 AED

Step 3 – Additional 2 Years (After 5 years)

30 days × 200 AED = 6,000 AED (per year)

6,000 × 2 = 12,000 AED

Step 4 – Final Gratuity

21,000 + 12,000 =
→ 33,000 AED

Final Notes

DDA/TECOM Free zones follow a clear and transparent end-of-service structure where only the basic wage is used to calculate gratuity.
The calculator applies:

• Real DDA formula
  
• Exact service duration
  
• Pro-rata rules
  
• Notice deduction
  
• Maximum wage limit
  

This ensures you receive 100% accurate DDA Free zone gratuity no matter if you are resigning, completing your contract, or planning your future.

SAIF Zone (Sharjah Airport International Free zone) Gratuity Calculator helps employees and employers calculate the correct end-of-service benefit using official SAIF Zone employment rules. SAIF Zone follows its own free zone labor regulations, but its gratuity structure stays very close to UAE federal standards. The calculator uses your basic salary, total years of continuous service, and other required details to show an accurate gratuity amount. It gives a clear and simple estimate so every employee can understand how much end-of-service benefit they will receive according to SAIF Zone guidelines.

SAIF Zone Overview

SAIF Zone follows its own employment framework that clearly explains how gratuity works. Every permanent employee becomes eligible for gratuity after completing one full year of continuous service. The gratuity amount grows with every additional year an employee works. SAIF Zone always uses the last drawn basic salary for the calculation, and it does not include allowances at any point. This system keeps the calculation simple, clear, and fair for both employees and employers.

Eligibility Requirements

• ✔ Minimum one year of continuous service is required.
  
• ✔ Contract completion or natural resignation keeps gratuity fully payable.
  
• ✔ Disciplinary termination can remove gratuity entitlement completely.
  
• ✔ Unpaid leave days do not count in total service duration.
  
• ✔ Partial (incomplete) years are always calculated proportionally.
  

These rules ensure employees receive a fair calculation based on the actual time they have served.

SAIF Zone Gratuity Formula

SAIF Zone follows a simple and clear gratuity structure that depends on the basic salary and total service duration:

• First 5 years: 21 days of basic salary per year
  
• More than 5 years: 30 days of basic salary per year
  
• Maximum limit: Gratuity cannot exceed two years’ total wage
  

This formula helps employees understand their end-of-service entitlement easily and stays aligned with UAE gratuity standards.

How Your SAIF Zone Gratuity Calculator Works 

Joining Date & Leaving Date

This calculator uses both dates to calculate total service duration.
Incomplete years are calculated on a pro-rata basis.

Basic Salary

SAIF Zone always uses the last drawn basic salary for gratuity.

Allowances

Allowances such as housing, transport, food, mobile, etc.
❌ Not included in the gratuity calculation.
The calculator shows them only for clarity.

Unpaid Leave Days

Unpaid leave is subtracted from the total service days.
This slightly reduces the final gratuity.

Notice Pay Deduction

If the employee did not serve notice, the employer can deduct the amount.
Your calculator subtracts this amount from the final result.

SAIF Zone Example

Basic Salary: 3,500 AED
Service Duration: 3 years
Unpaid Leave: 0 days
Notice Deduction: 0 AED

Step 1 – Calculate Daily Salary

Basic Salary ÷ 30
→ 3,500 ÷ 30 = 116.66 AED

Step 2 – Gratuity for 21 Days

21 × Daily Salary
→ 21 × 116.66 = 2,449.8 AED

Step 3 – Multiply by Total Years

2,449.8 × 3 years
→ 7,349.4 AED

Final Gratuity

→ 7,349.4 AED

This example shows how the SAIF Zone Gratuity Calculator generates accurate results by using the correct formula and adjusting for service duration, unpaid leave, and notice deductions.

Final Notes

SAIF Zone applies clear and strict rules for gratuity calculation. The system uses only the basic salary, and it calculates every incomplete year on a pro-rata basis to keep the estimate accurate. Our SAIF Zone Gratuity Calculator follows these rules step by step, so employees can see a fair and correct estimate of their end-of-service benefit. No matter if you are resigning, finishing your contract, or simply planning your future, this guide helps you understand exactly how your SAIF Zone gratuity is calculated.

DMCC Gratuity System – Complete Overview

DMCC (Dubai Multi Commodities Centre) applies its own employment framework for end-of-service benefits. The DMCC Gratuity Calculator determines EOSB strictly on the basis of basic salary, while allowances remain excluded throughout the calculation. Although DMCC follows independent regulations, its gratuity structure aligns closely with the MOHRE model.

DMCC calculates gratuity based on service duration. The system applies 21 days of basic salary for each of the first five years of employment and 30 days per year for service that exceeds five years. This structure rewards longer service and ensures a balanced entitlement. The calculator also adds incomplete years proportionately, which results in accurate and transparent EOSB computation.

Eligibility Requirements

DMCC grants gratuity only when an employee completes at least one full year of continuous service. The employee must have a valid employment contract because the gratuity entitlement depends directly on the contract terms. DMCC can also cancel the gratuity if the employer terminates the employee for gross misconduct.

DMCC deducts unpaid leave from the total service period, which reduces the service years and automatically lowers the final gratuity amount. If the employee fails to serve the required notice period, the system applies notice pay deductions, which also reduce the final gratuity.

DMCC Gratuity Calculation Rules – Clear & Accurate

Daily Salary Formula:
Daily Salary = Basic Salary ÷ 30

Structure:

• First 5 years:
  21 days × daily salary × total completed years
  
• After 5 years:
  30 days × daily salary × remaining years
  

Pro-Rata Method:

Incomplete years (months/days) are calculated by converting proportional.
Example:
0.45 years → 0.45 × 30 = 13.5 days of gratuity

Exclusions

DMCC calculates end-of-service gratuity based on basic salary only.
Housing, transportation, food, mobile allowances, fixed allowances, overtime, bonuses, and other monetary benefits do not form part of the EOSB calculation.

Adjustments

Unpaid Leave Days:
These days are deducted from the total service duration.

Notice Pay Deduction:
If notice is not served, the deduction is subtracted from the final gratuity amount.

Final Settlement:
Gratuity forms only one part of the final settlement. Salary dues, leave encashment, reimbursements, and other components are processed separately.

DMCC Gratuity Formula (Actual Calculation Method)

Daily Salary = Basic Salary ÷ 30

For the first 5 years of service:

Gratuity = Daily Salary × 21 × Completed Years

For service beyond 5 years:

Gratuity = Daily Salary × 30 × Remaining Years

Additional Rules:

• Unpaid leave is deducted from total service.
  
• Incomplete service years are calculated proportionally.
  
• Notice period deduction reduces the final gratuity.
  

DMCC Gratuity – Full Example (Correct & Expanded)

Country / Currency: UAE (AED)
Contract Type: Permanent
Joining Date: 15/02/2016
Leaving Date: 20/08/2023
Basic Salary: 7,000 AED
Allowances: 1,500 AED (excluded from calculation)
Unpaid Leave Days: 20
Notice Deduction: 2,000 AED

Step 1 – Service Duration Calculation

Total calendar service ≈ 7 years, 6 months, 5 days
Unpaid leave: –20 days
Adjusted service ≈ 7 years, 5 months, 15 days

Convert to years:
7 years + 5.5 months ≈ 7.46 years

Step 2 – Daily Salary Calculation

7,000 ÷ 30 = 233.33 AED

Step 3 – Gratuity Computation

First 5 years:

233.33 × 21 × 5 = 24,499.65 AED

Remaining 2.46 years:

233.33 × 30 × 2 = 13,999.80 AED
233.33 × 30 × 0.46 = 3,213.35 AED

Subtotal:

24,499.65 + 13,999.80 + 3,213.35 = 41,712.80 AED

Step 4 – Apply Notice Deduction

41,712.80 – 2,000 = 39,712.80 AED

DMCC Final Notes

The DMCC gratuity system becomes easy to calculate when the basic salary, service duration, unpaid leave days, and notice deductions are clearly entered. The pro-rata method accurately adjusts partial service years and keeps the final EOSB precise.

DMCC applies a structure similar to federal MOHRE rules, but specific contract clauses can influence the final gratuity entitlement. Correct data entry in all fields ensures an accurate and error-free DMCC gratuity calculation.

Overview of the JAFZA Gratuity System

JAFZA enforces its employment regulations under the Jebel Ali Free Zone Authority. The JAFZA Gratuity Calculator UAE calculates end-of-service pay based on these rules and operates separately from MOHRE, following the JAFZA Employment Handbook. The Handbook clearly defines eligibility, calculation, caps, and rules for partial service. Free zone employers use the JAFZA Gratuity Calculator UAE to compute gratuity solely according to these internal regulations. The structure resembles the MOHRE model, but the Free zone applies its own definitions of wage calculation, service continuity, and maximum entitlement limits.

Eligibility Conditions for Gratuity

JAFZA workers must meet certain specific conditions for gratuity:

• At least one year of continuous service
• Valid and active employment contract
• No termination for misconduct under JAFZA disciplinary rules
• Completion of the employment period defined in the contract
• Service only counts during lawful attendance and approved leave

Serious misconduct completely voids gratuity. JAFZA evaluates misconduct according to its own disciplinary framework, which differs from MOHRE standards.

JAFZA Gratuity Formula and Entitlement Structure

Gratuity entitlement depends entirely on the basic salary and total years of service inside the freezone. JAFZA applies the following calculation structure:

• First five years: 21 days of basic wage per year
  
• More than five years: 30 days of basic wage per year
  
• Maximum limit: Total gratuity cannot exceed the equivalent of two years’ wage
  

Basic salary is the exclusion factor for gratuity calculation. Housing allowance, transport allowance, overtime, bonuses, or any other extra compensation are not included in the formula. Additional service years are added according to a proportional monthly or daily breakdown.

Important Calculation Principles

JAFZA applies strict rules for consistency:

• Last drawn basic salary defines the calculation base
  
• Unpaid leave is deducted from total service duration
  
• Unauthorized absence extends the service period but does not count toward gratuity
  
• Fractional service months convert into days and add proportionally
  
• Wage used for calculation refers to the contractual basic wage, not gross income
  

These rules ensure that the gratuity value reflects actual eligible service without inflating the entitlement through allowances.

Example Gratuity Calculation (Correct JAFZA Method)

Country / Currency: UAE (AED)

Contract Type: Permanent

Joining Date: 01/01/2018

Leaving Date: 01/01/2024

Basic Salary: 4,000 AED

Allowances: 1,000 AED (not included in JAFZA gratuity)

Unpaid Leave Days: 12 days

Notice Pay Deduction: 0 AED

Apply JAFZA Gratuity Formula

First 5 years:
21 days per year
21-day salary = 133.33 × 21 = 2,799.93 AED
5-year subtotal = 2,799.93 × 5 = 13,999.65 AED

Year after 5:
30 days for each additional year
Additional service ≈ 1 year (after adjusting unpaid leave)
30-day salary = 133.33 × 30 = 3,999.9 AED

Total JAFZA Gratuity

Total = 13,999.65 + 3,999.9 = 17,999.55 AED

Final JAFZA Gratuity Payable: 17,999.55 AED

The example shows how JAFZA increases the entitlement after the fifth year and how the calculation excludes all non-basic pay components.

Final Notes on JAFZA Gratuity Rules

JAFZA uses a gratuity framework that resembles MOHRE in structure, but differs in authority and execution. Final calculations are made in accordance with the JAFZA Employment Handbook because Freezone operates under its own regulations. Contract terms, disciplinary records, and documented service periods play a major role in determining the final gratuity amount. The system provides clear guidelines so that employers can accurately calculate end-of-service benefits in accordance with Freezone regulations.