Gratuity Calculator JAFZA

How Gratuity Works for JAFZA Employees

Jebel Ali Free Zone, established in 1985 next to Jebel Ali Port, is one of the world’s oldest and largest free zones, home to thousands of manufacturing, trading, and logistics companies from well over 100 countries. A lot of employees assume that because JAFZA runs its own labour affairs system, it must also run its own gratuity rules. It doesn’t. Federal Decree-Law No. 33 of 2021 applies inside JAFZA exactly as it does on the mainland, and JAFZA’s own guidance confirms this directly. What’s different is process, not math: your final settlement is handled through JAFZA’s Labour Affairs Section and its digital platforms, rather than filed directly through MOHRE.

The Gratuity Formula in JAFZA

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

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 the two parts together. If the total comes out above 2 years’ basic salary, it’s capped at that amount.

Only your basic salary counts. Housing allowance, transport allowance, bonuses, commissions, and overtime are all excluded from the calculation, even if MOHRE’s Wage Protection System shows them as part of your monthly pay.

Worked Example

Say you earn AED 15,000 basic salary a month in JAFZA and you’re leaving after exactly 5 years of service, whether by resignation or termination.

JAFZA vs DIFC and ADGM: A Real Distinction

This is where the confusion usually starts. JAFZA is not the same as DIFC or ADGM. JAFZA, along with other Dubai free zones like DMCC and DAFZA, follows the standard federal gratuity formula covered on this page. DIFC and ADGM are the only two free zones in the UAE with genuinely separate employment legislation and their own courts. DIFC uses the DEWS savings scheme instead of lump-sum gratuity, and ADGM runs its own employment regulations. If your employer is registered in JAFZA, DMCC, or DAFZA, none of that applies to you, and the 21/30-day formula above is exactly what you’re owed. For the full picture on the two real exceptions, see our DIFC and ADGM gratuity guide.

Resignation vs Termination in JAFZA

Since February 2022, resignation and termination are treated the same way under the current law, as long as you’ve completed at least one year of continuous service. This applies inside JAFZA exactly as it does everywhere else. Older guidance describing a reduced payout for early resignation reflects the law before 2022, not the rules JAFZA follows today. See our old law vs new law breakdown for the full history of that change.

Eligibility and the JAFZA Settlement Process

The core eligibility rules match the rest of the UAE:

• At least one year of continuous service is required to qualify for any gratuity.
• Unpaid or unauthorized leave days don’t count toward your service period.
• Serious misconduct under Article 44 can disqualify you from gratuity.
• A partial final year is paid pro-rata once you clear the one-year minimum.

Where JAFZA differs is in how your settlement gets processed. Your employer typically completes a JAFZA End of Service Form covering your salary, employment dates, and any deductions, and final approval runs through JAFZA’s Labour Affairs Section rather than a MOHRE office directly. Employers must still settle the full amount within 14 days of your last working day under Article 53. If that deadline passes without payment, see our guide on what to do if your employer won’t pay your gratuity for the complaint process.