Gratuity Calculator Ajman

How Gratuity Works for Ajman Employees

Ajman is the smallest emirate by land area, but it’s home to a genuinely diverse private sector, from manufacturing and shipbuilding to a growing health, food, and beverage industry based out of Ajman Free Zone (AFZA), which sits near Ajman Port and Ajman International Airport. Whatever sector you work in, mainland or free zone, the same law applies: Federal Decree-Law No. 33 of 2021 governs your gratuity, with Article 51 setting the formula.

AFZA itself confirms this directly in its own guidance to employees: end-of-service gratuity is calculated on your last basic salary only, with no allowances included, exactly as the federal law requires.

The Gratuity Formula in Ajman

Your gratuity depends on your basic monthly salary and total years of service, not your gross pay. Here’s the calculation:

1. 1
   Work out your daily wage: basic monthly salary divided by 30.
2. 2
   For each of your first 5 years of service, you earn 21 days of that daily wage.
3. 3
   For every year beyond year 5, you earn 30 days of that daily wage instead.
4. 4
   Add both parts together. If the total is more than 2 years’ basic salary, it’s capped at that amount.

Only basic salary counts. Housing allowance, transport allowance, bonuses, commissions, and overtime pay are excluded from the calculation, no matter how large a share of your monthly pay they make up.

Worked Example of Ajman Gratuity Calculator

Say you earn AED 6,500 basic salary a month in Ajman and you’re leaving after 3 years of service. It makes no difference whether you resigned or were terminated, since current law treats both the same way.

Resignation and Termination Are Treated the Same

Since February 2022, resignation and termination have been treated identically for gratuity purposes across the whole UAE, including Ajman, as long as you’ve completed at least one year of continuous service. Older guidance describing a reduced payout for early resignation reflects the law before that date, not the rules in place now. For the full comparison, see our old law vs new law guide.

Ajman Free Zone (AFZA): What’s Different

AFZA, established in 1988, is one of the UAE’s older free zones and now sits under the Free Zones Authority of Ajman, which also oversees Ajman Media City and Al Zorah Free Zone. Gratuity for AFZA employees follows the same federal formula as mainland Ajman. What’s genuinely useful to know is that AFZA runs its own labour protection channel, letting workers file complaints about unpaid wages or gratuity discreetly through the free zone’s own portal, in addition to the standard MOHRE route available to mainland employees.

Eligibility Rules That Apply in Ajman

The same eligibility conditions apply here as anywhere else in the UAE:

• You need at least one year of continuous service to qualify for any gratuity.
• Unpaid or unauthorized leave days don’t count toward your service period.
• If you’re dismissed for gross misconduct under Article 44, you can lose your gratuity entitlement.
• A partial final year is paid pro-rata once you’ve cleared the one-year minimum.

If your employer misses the 14-day payment deadline under Article 53, or refuses to pay altogether, see our guide on what to do if your employer won’t pay your gratuity for the MOHRE complaint process.