Free Zone Gratuity Calculator — DIFC, ADGM, JAFZA, DMCC and More
Instant AED estimate · Covers standard free zones plus DIFC and ADGM rules
Employment details
Your employment dates and the reason your employment ended.
Most UAE employment after 2022 is unlimited term under FDL 33/2021.
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Updates as you fill inThis free zone gratuity calculator gives you an instant AED figure for your end-of-service entitlement, whether you work in a standard MOHRE-regulated free zone or one of the UAE's two independent financial free zones. Most free zones, including JAFZA, DMCC, RAKEZ, and Dubai Silicon Oasis, follow the same federal labour law as mainland companies. DIFC and ADGM are the exceptions: each has its own employment law, its own regulator, and its own end-of-service system.
The calculator below applies the standard federal formula. If you work in DIFC or ADGM, read the section further down before relying on the number, since your entitlement may be calculated under a different set of rules entirely.
Which Gratuity Rules Apply to Your Free Zone?
"Free zone" is not one legal category. Most free zones are administrative and licensing zones only; they do not change which employment law applies. A smaller number are legal jurisdictions in their own right, with a separate court system and a separate employment law.
Standard free zones (federal law applies)
Article 51 of Federal Decree-Law No. 33 of 2021, enforced by MOHRE. Same formula as mainland.
Independent regimes (own employment law)
Each has its own employment law and its own end-of-service system, separate from the federal MOHRE formula.
How the Free Zone Gratuity Calculator Works
The tool above has four short steps. First, enter your employment start and last working day and select why your employment ended; the dates alone check your eligibility. Second, enter your basic monthly salary and a live gratuity estimate appears immediately, using the 21/30-day formula and the two-year cap. If you want a formal document to send your employer, the third step collects your name and your employer's details, and the fourth step previews the finished demand letter, citing Article 51 and the MOHRE complaint procedure, ready to download.
You do not need to reach the final step just to get a number. The calculation on step two is free and requires no signup. The demand letter is for cases where your employer has not paid within the 14-day statutory window and applies to MOHRE-regulated free zones, not DIFC or ADGM disputes.
Who Can Use This Calculator?
✅ The formula above applies if you are:
- • Employed in JAFZA, DMCC, RAKEZ, or another MOHRE-regulated free zone
- • On a full-time contract with at least 1 year of service
- • A non-UAE-national (expatriate) worker
- • Resigning, retiring, or being terminated
❌ The formula above does not apply if you are:
- • Employed in DIFC (check DEWS contributions instead)
- • Employed in ADGM (check the ADGM Employment Regulations instead)
- • A UAE national (covered by pension and social security law)
- • Under 1 year of continuous service
- • A domestic worker (governed by Federal Decree-Law No. 9 of 2022)
DIFC and ADGM: Why These Two Free Zones Are Different
DIFC and ADGM are financial free zones with common-law based courts and their own legislation. Employment disputes in these zones do not go through MOHRE.
DIFC — DEWS replaced most gratuity
Since 1 February 2020, most DIFC employers must pay a monthly contribution into DEWS (DIFC Employee Workplace Savings) instead of accruing a lump-sum gratuity. Contributions are typically 5.83% of basic wage for the first five years of service and 8.33% after that, invested and paid out when employment ends. A small number of employers instead run a "Qualifying Scheme" that must match or beat DEWS. If your contract predates February 2020, part of your service may still fall under the older DIFC gratuity rules. Check your DEWS portal statement or your contract for your specific arrangement.
ADGM — its own Employment Regulations
ADGM companies operate under the ADGM Employment Regulations 2019, a separate legal instrument from the federal Labour Law. The gratuity calculation is structured similarly to Article 51, but it is administered under ADGM's own rules and enforced through the ADGM Courts rather than MOHRE. Confirm your exact entitlement against your ADGM-registered contract.
Mainland vs Standard Free Zone vs DIFC vs ADGM
| Aspect | Mainland | Standard free zone | DIFC | ADGM |
|---|---|---|---|---|
| Governing law | Federal Decree-Law No. 33 of 2021 | Federal Decree-Law No. 33 of 2021 | DIFC Employment Law No. 4 of 2005 (as amended) | ADGM Employment Regulations 2019 |
| Regulator | MOHRE | MOHRE | DIFC Authority | ADGM Registration Authority |
| End-of-service system | Lump-sum gratuity, 21/30-day formula | Lump-sum gratuity, 21/30-day formula | DEWS funded savings plan (most staff, since Feb 2020) | Lump-sum gratuity under ADGM formula |
| Minimum service for eligibility | 1 year | 1 year | No fixed 1-year threshold; contributions typically start from day one | 1 year |
| Payment cap | 24 months' basic salary | 24 months' basic salary | No lump-sum cap (contribution-based) | Set under ADGM Employment Regulations |
| Dispute forum | MOHRE / Labour Courts | MOHRE / Labour Courts | DIFC Courts | ADGM Courts |
How the Standard Formula Is Calculated
For MOHRE-regulated free zones, the formula has three steps. Once you know your basic salary and total years of service, you can reproduce exactly what the calculator above shows.
Step 1 — Daily wage
Daily wage = Basic monthly salary ÷ 30
Step 2 — Accrued days
First 5 years: 21 days × years worked (up to 5)
Years beyond 5: 30 days × additional years worked
Step 3 — Apply the cap
Gratuity = Accrued days × Daily wage, capped at 24 × Basic monthly salary
Fractions of a year are paid proportionally. Six months into your third year contributes roughly half of a year's worth of days at the applicable rate, once you have already passed the 1-year eligibility threshold.
Worked Examples
Real AED figures for common salary and tenure combinations under the standard free zone formula.
Resignation vs Termination in Free Zones
For MOHRE-regulated free zones, resignation and termination now receive the same treatment. The reduced-gratuity penalty for early resignation under the old 1980 labour law was removed when Federal Decree-Law No. 33 of 2021 took effect in February 2022.
🚪 Resignation
Full gratuity is payable using the standard 21/30-day formula, once you have completed at least 1 year of service. No reduction applies regardless of notice given.
📋 Termination
Full gratuity is also payable using the identical formula. Even summary dismissal under Article 44 for serious misconduct generally preserves accrued gratuity, though separate damages claims remain possible.
Common Mistakes When Calculating Free Zone Gratuity
Assuming DIFC gratuity works like JAFZA or DMCC
DIFC replaced its old gratuity scheme with DEWS (DIFC Employee Workplace Savings) for most employees hired since February 2020. DEWS is a monthly employer contribution into an investment plan, not a lump sum calculated on your final basic salary at exit. Employees on legacy contracts predating DEWS may still fall under the older gratuity rules.
Assuming ADGM follows the federal Article 51 formula exactly
ADGM runs under its own Employment Regulations 2019, not the federal labour law. The gratuity calculation is similar in structure to Article 51, but it sits under a separate legal instrument, so ADGM disputes go through ADGM courts, not MOHRE.
Using gross salary instead of basic salary
In MOHRE-regulated free zones, housing allowance, transport allowance, and bonuses are excluded from the calculation. Only the fixed basic wage in your registered contract counts.
Counting unpaid leave as service time
Unpaid leave is deducted from the service period used for gratuity. Paid sick leave and maternity leave still count toward your years of service.
Applying 30 days per year from year one
Under the standard formula, the 30-day rate applies only to years beyond the first five. The first five years accrue at 21 days per year.
Assuming resignation cuts your gratuity
The reduced-gratuity penalty for early resignation was abolished in February 2022. Resignation and termination now receive the same treatment under the federal formula, once you have completed one year of service.
Ignoring the two-year cap
Total gratuity under the federal formula cannot exceed 24 months of basic salary, regardless of tenure. Long-serving employees should check whether this ceiling applies to them.
Not checking which authority actually governs your contract
Your offer letter or contract usually names the regulator: MOHRE, DIFC Authority, or the ADGM Registration Authority. That single line determines which set of rules applies to your gratuity, so check it before assuming.
If Your Free Zone Employer Doesn't Pay Your Gratuity
For MOHRE-regulated free zones, employers have 14 days from your contract end date to pay all end-of-service entitlements under Article 53. If that deadline passes, a formal, law-cited demand letter is the standard first step before escalating to MOHRE. DIFC and ADGM disputes follow a different path, through the DIFC Courts or ADGM Courts.
Article 51-cited letter with your gratuity calculated automatically
General end-of-service entitlement demand letter
Abu Dhabi-specific gratuity demand letter and calculator
Dubai-specific gratuity demand letter and calculator
What to do, and how to escalate, when gratuity is withheld
How resignation affects your entitlement
How termination affects your entitlement
What happens to your gratuity once your visa is cancelled
Steps to take when payment is overdue
Formal MOHRE complaint if gratuity is not paid within 14 days
Frequently Asked Questions — Free Zone Gratuity Calculator
Do free zone employees in the UAE get gratuity?
Is gratuity calculated differently in a free zone compared to mainland UAE?
Does DIFC have a different gratuity system?
Does ADGM have a different gratuity system?
Are DMCC employees eligible for gratuity?
Are JAFZA employees eligible for gratuity?
What salary is used to calculate free zone gratuity?
Is there a minimum service period before I qualify for gratuity in a free zone?
Does resigning reduce gratuity for free zone employees?
How do I find out which authority governs my free zone job?
Is there a cap on gratuity for free zone employees?
What happens to gratuity if a free zone employer doesn't pay?
Related Gratuity Tools
General end-of-service calculator for any emirate
Article 51 formula, Dubai mainland and free zone context
DEWS contributions and legacy DIFC gratuity explained
Mainland Abu Dhabi and ADGM context
SAIF Zone, Hamriyah Free Zone, and mainland Sharjah
Calculate your entitlement, then generate a formal demand letter
Full breakdown of Article 51, 52, and 53 obligations
Calculate Your Free Zone Gratuity in Seconds
If you work in JAFZA, DMCC, RAKEZ, or another MOHRE-regulated free zone, enter your basic salary and employment dates in the calculator above for an instant breakdown. If you work in DIFC or ADGM, use the section above to confirm which system applies, then check your DEWS statement or ADGM contract for the exact figure. If your employer hasn't paid what you're owed, use one of the demand letter tools above to escalate formally.
Back to Calculator ↑Methodology: The calculator applies the gratuity formula set out in Article 51 of Federal Decree-Law No. 33 of 2021, as published on the official UAE Government portal, together with the 14-day payment rule under Article 53 and MOHRE enforcement provisions under Federal Decree-Law No. 9 of 2024. DIFC and ADGM context references the DIFC Authority and Abu Dhabi Global Market (ADGM). For MOHRE-regulated free zone complaints, refer to the Ministry of Human Resources and Emiratisation (MOHRE).
Disclaimer: This tool provides an estimate for general informational purposes only and does not constitute legal advice. DIFC and ADGM rules change independently of federal law, and the exact figure for those two zones depends on your specific contract and scheme. For your exact entitlement, confirm against your registered contract or consult a qualified employment law professional in the relevant jurisdiction.
Last updated: July 2026 · Reviewed by: OfficeDraft Payroll Research Team