Gratuity in Fujairah is calculated under the same federal formula as the rest of the UAE: 21 days of basic salary for each of your first five years, then 30 days for every year after that, capped at two years’ total salary. Use the calculator above with your basic salary and service dates to get your estimate.
How Gratuity Works for Fujairah Employees
Fujairah is the only emirate sitting entirely on the Gulf of Oman coast rather than the Arabian Gulf, and its economy leans heavily on Fujairah Port, one of the world’s major oil bunkering and storage hubs, along with maritime services and a growing tourism sector around the Hajar Mountains, which cover more than 70 percent of the emirate’s land area. Whether you work for a mainland Fujairah company or a Fujairah Free Zone Authority (FFZA)-registered employer, the same law sets your gratuity: Federal Decree-Law No. 33 of 2021, with Article 51 giving the formula.
The Gratuity Formula in Fujairah
Your gratuity depends on your basic monthly salary and total years of service, not your gross pay. Here’s the calculation:
- 1Work out your daily wage: basic monthly salary divided by 30.
- 2For each of your first 5 years of service, you earn 21 days of that daily wage.
- 3For every year beyond year 5, you earn 30 days of that daily wage instead.
- 4Add both parts together. If the total is more than 2 years’ basic salary, it’s capped at that amount.
Only your basic salary counts. Housing allowance, transport allowance, bonuses, commissions, and overtime pay are all excluded, even if they make up a large share of your monthly income.
Fujairah Gratuity Calculator Example
Suppose you earn AED 7,000 basic salary a month in Fujairah and you’re leaving after 8 years of service. It doesn’t matter whether you resigned or were terminated, since current law treats both the same way.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 7,000 ÷ 30 | AED 233.33 |
| Years 1 to 5 | 233.33 × 21 days × 5 years | AED 24,500 |
| Years 6 to 8 | 233.33 × 30 days × 3 years | AED 21,000 |
That total is well under the 2-year cap of AED 168,000 (24 months × AED 7,000), so the full AED 45,500 is what you’d be owed.
Resignation and Termination Are Treated the Same
Since February 2022, resignation and termination have been treated identically for gratuity purposes across the UAE, including Fujairah, as long as you’ve completed at least one year of continuous service. Older guidance describing a reduced payout for resigning early reflects the law before that date, not the rules in place today.
Fujairah Free Zone (FFZA)
FFZA, run by the Fujairah Free Zone Authority, sits next to Fujairah Port and is known for having no fixed cap on the number of employees a licensed company can sponsor. For gratuity purposes, FFZA employees generally follow the same federal formula covered on this page, the same way most UAE free zones do, unless your specific employment contract states a different scheme. It’s always worth checking your contract directly with HR or FFZA rather than assuming, since the free zone authority processes your labour file rather than MOHRE handling it directly.
Eligibility Rules That Apply in Fujairah
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.
FAQs
Generally yes. FFZA companies typically follow the standard federal formula unless a specific contract states otherwise, so it’s worth confirming with your employer or FFZA directly rather than assuming.
No. Gratuity is governed by federal law regardless of geography. Fujairah’s location doesn’t change the formula, the eligibility rules, or the two-year cap.
Mainland employees go through MOHRE, by app, hotline, or service center. FFZA employees should also check with the free zone authority directly, since it handles labour files for its registered companies.
This page provides general information about UAE gratuity rules and is not legal advice. For a specific dispute or unusual employment situation, consult MOHRE or a licensed UAE labour lawyer.