Most UAE free zones, including JAFZA and DMCC, follow the federal UAE Labour Law, so your gratuity is worked out exactly as on the mainland. The two financial free zones are different: the DIFC replaced gratuity with a monthly savings scheme from 1 February 2020, and ADGM has its own employment regulations.
Which rules apply
| Where you work | Employment law | End of service |
|---|---|---|
| JAFZA | Federal Decree-Law No. 33 of 2021 | Gratuity: 21 days’ basic a year for 5 years, then 30 |
| DMCC | Federal Decree-Law No. 33 of 2021 | Same as JAFZA and the mainland |
| DIFC | DIFC Employment Law (DIFC Law No. 2 of 2019) | Gratuity for service before 1 Feb 2020, then DEWS contributions |
| ADGM | ADGM Employment Regulations 2024 | Gratuity on 21 and 30 days’ basic, or a savings scheme instead |
JAFZA and DMCC: the federal law
DMCC’s official employment FAQs say employment in the free zone “is governed by” Federal Decree-Law No. 33 of 2021 and its Executive Regulations. JAFZA tells its companies they “must comply with the laws set forth by the relevant departments of the government of the UAE, including end-of-service benefits”. (JAFZA’s article dates from 2021 and its worked examples follow the older law, so use it only for which law applies.) The federal law itself covers the private sector across the UAE (Article 3).
So the gratuity rules are those of Article 51:
- At least 1 year of continuous service.
- 21 days of basic salary for each of the first 5 years, 30 days for each year after, part years in proportion.
- Based on the last basic salary, without allowances.
- At most 2 years’ wage in total.
A day’s basic salary is usually the monthly basic ÷ 30; the law does not set the divisor.
Example: AED 10,000 basic, 7 years in DMCC. (5 × 21 + 2 × 30) = 165 days × AED 333.33 = AED 55,000.
Work out yours with the UAE gratuity calculator.
DIFC: gratuity until 2020, then DEWS
The DIFC Employment Law applies to employers with a place of business in the DIFC and to employees based in or working from it (Article 4). Article 66 sets two parts:
- Gratuity for service before 1 February 2020, if you have at least 1 year of continuous employment: 21 days of basic wage for each of the first 5 years, 30 days after, at most 2 × your annual wage. The daily rate is the annual basic wage ÷ 365.
- Monthly contributions from 1 February 2020 (or your start date, if later) into a qualifying scheme: at least 5.83% of your monthly basic wage during your first 5 years of service and 8.33% after. The DIFC Employee Workplace Savings Plan (DEWS) is deemed a qualifying scheme (DIFC Employment Regulations, 8.2.1).
For both, the basic wage counted is at least 50% of your wage, so a low basic does not cut your end of service.
Example: AED 10,000 basic on a AED 15,000 wage, joined 1 February 2018, left 31 January 2026. Gratuity for the 2 years before 2020: 42 days × (120,000 ÷ 365) = AED 13,808.22. Contributions since: 3 years at 5.83% and 3 at 8.33% = AED 50,976 paid in, before investment growth.
UAE and GCC nationals registered with the GPSSA pension get no gratuity in the DIFC (Article 65). Use the DIFC gratuity and DEWS calculator.
ADGM: its own regulations
ADGM describes itself as “a financial free zone exempt from the UAE Federal Labour Law”. Its Employment Regulations 2024 apply from 1 April 2025 and replaced the 2019 regulations. According to the official guidance of ADGM’s Employment Affairs Office (published 18 February 2025):
- At least 1 year of continuous employment, whatever the reason for termination.
- 21 days’ basic wage for each of the first 5 years and 30 days’ for each additional year, part years in proportion.
- The daily rate is the basic wage ÷ 365, and the basic wage must be at least 50% of annual wages.
- An employer may offer a pension or savings scheme instead. If you choose it in writing, no gratuity is due unless agreed otherwise.
- UAE and GCC nationals enrolled in the federal pension scheme are not covered.
We read ADGM’s guidance, not the final text of the 2024 Regulations, which could not be downloaded from ADGM’s legal database. Check your contract and ask your employer which applies.
Other free zones
The federal Decree-Law covers the private sector across the UAE (Article 3), and the two free zones checked here confirm they follow it. If you work in another free zone, check its employment rules or ask the free zone authority before relying on any figure.
Official texts: Federal Decree-Law No. 33 of 2021 · DIFC Employment Law (Consolidated Version No. 5, July 2025) · DIFC Employment Regulations · ADGM guidance on the Employment Regulations 2024 · ADGM Employment Affairs Office · DMCC Employment FAQs (version 2, 3 March 2022) · JAFZA guide to end-of-service benefits
Checked on 24 October 2026 against the texts listed above.
Common questions
Is gratuity different in a free zone?
Not in most. JAFZA and DMCC follow Federal Decree-Law No. 33 of 2021, so gratuity is the same as on the mainland. The DIFC and ADGM financial free zones have their own employment laws with different rules.
How is gratuity calculated in JAFZA or DMCC?
21 days of basic salary for each of the first 5 years and 30 days for each year after, at most 2 years' wage, after at least 1 year of service (Article 51 of Decree-Law 33 of 2021).
Do DIFC employees get gratuity?
Only for service before 1 February 2020. Since then, employers pay at least 5.83% of the monthly basic wage (8.33% after 5 years of service) into DEWS or another qualifying scheme (DIFC Employment Law, Article 66).
How is ADGM gratuity calculated?
According to ADGM's official guidance on its Employment Regulations 2024: 21 days of basic wage for each of the first 5 years and 30 days after, a daily rate of basic wage ÷ 365, and a basic wage of at least 50% of total wages. Employees may choose a pension or savings scheme instead.
Work out your own figure
Enter your own numbers to see the result and the working.
Open the calculatorarrow_forwardThis guide is general information, not legal advice. Check your own entitlement with MOHRE or a qualified adviser. See our Disclaimer.
