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.