Legal Disclaimer: This guide provides general information about JAFZA gratuity as of November 2025. JAFZA regulations may differ from mainland UAE. For specific cases, consult JAFZA Authority or a qualified employment lawyer.
Jafza Gratuity Calculator and Rules in UAE 2025
TL;DR: JAFZA free zone employees use the same gratuity formula as mainland UAE with 21 days per year for first 5 years and 30 days thereafter. The key difference is jurisdiction—JAFZA Authority handles disputes instead of MOHRE, but calculation methods and resignation penalties remain identical under JAFZA Employment Regulations 2022.
Jebel Ali Free Zone (JAFZA) employees follow JAFZA Employment Regulations (JAFZA ER), which align closely with—but are not identical to—mainland UAE Federal Decree-Law No. 33 of 2021. The gratuity calculation formula is the same as mainland: 21 days per year for first 5 years, 30 days thereafter. However, eligibility requirements, resignation penalties, and dispute resolution processes differ slightly. This calculator and guide provide accurate JAFZA-specific gratuity estimates, explain free zone nuances, and show you how to verify your entitlement under JAFZA Employment Regulations 2022.
Gratuity Calculator
JAFZA vs. Mainland UAE: Key Differences
Fundamental distinction:
- Mainland UAE: Governed by MOHRE and Federal Decree-Law No. 33/2021
- JAFZA: Governed by JAFZA Authority and JAFZA Employment Regulations (JAFZA ER)
What this means for gratuity:
| Aspect | Mainland UAE (MOHRE) | JAFZA Free Zone |
|---|---|---|
| Governing law | Federal Decree-Law No. 33/2021 | JAFZA ER 2022 |
| Gratuity formula | 21/30 days per year | 21/30 days per year (same) |
| Minimum eligibility | ≥ 1 year service | ≥ 1 year service (same) |
| Resignation penalty | 1-3 yrs: 33.33%; 3-5 yrs: 66.67% | Same structure |
| Basic salary definition | Fixed monthly wage | Fixed monthly wage (same) |
| Payment deadline | 14 days after termination | 14 days (typically) |
| Dispute resolution | MOHRE Labour Court | JAFZA Authority JAFZA Court |
| Contract types (2025) | Limited only (max 3 years) | Limited only (max 3 years) |
JAFZA Gratuity Calculation Formula
The formula is the same as mainland UAE:
Gratuity = (Basic Salary ÷ 30) × Days per Year × Service Years
Where:
- Basic Salary = Fixed monthly wage (excludes allowances)
- Days per Year:
- 21 days for years 1-5
- 30 days for years 5+
- Service Years = Post-probation continuous service
Step-by-Step Calculation
Example: JAFZA Employee with 4 Years Service
Profile:
- Basic salary: AED 12,000/month
- Housing allowance: AED 3,000 (not included)
- Service: 4 years (post-probation)
- Employee resigns voluntarily
Calculation:
Step 1: Calculate daily wage
Daily Wage = 12,000 ÷ 30 = AED 400/day
Step 2: Apply service years (all under 5 years)
Gross Gratuity = 400 × 21 × 4 = AED 33,600
Step 3: Apply resignation penalty (3-5 years = 66.67%)
Final Gratuity = 33,600 × 66.67% = AED 22,400
If employer terminated instead: AED 33,600 (no penalty)
JAFZA Gratuity Eligibility
To qualify for JAFZA gratuity:
Minimum 1 year service (post-probation)
Valid JAFZA work permit during employment
Registered employment contract with JAFZA Authority
Termination or contract expiry (not resignation within 1 year)
Ineligible scenarios:
Service < 1 year
Termination for gross misconduct (Article 120 violations)
Abandonment of employment
Working without valid JAFZA permit
Probation Period
JAFZA probation rules:
- Maximum 6 months probation allowed
- Probation period does NOT count toward gratuity service years
- Must be stated in employment contract
- Either party can terminate during probation without penalty
Service start date for gratuity: Day after probation ends (or contract start if no probation stated).
Resignation Penalties in JAFZA
Same structure as mainland UAE:
| Service Length | If Employee Resigns | If Employer Terminates | If Contract Expires |
|---|---|---|---|
| 1-3 years | 33.33% (one-third) | 100% | 100% |
| 3-5 years | 66.67% (two-thirds) | 100% | 100% |
| 5+ years | 100% (no penalty) | 100% | 100% |
Key point: Letting your JAFZA contract expire naturally (without renewal) = 100% gratuity, even if service < 5 years.
JAFZA-Specific Examples
Example 1: Sales Manager (7 Years, Resigns)
Profile:
- Basic salary: AED 18,000
- Service: 7 years 3 months
- Employee resigns
Calculation:
- Daily wage: 18,000 ÷ 30 = AED 600
- Years 1-5: 600 × 21 × 5 = AED 63,000
- Years 5-7.25: 600 × 30 × 2.25 = AED 40,500
- Total: AED 103,500
- No resignation penalty (service > 5 years)
Example 2: IT Specialist (2.5 Years, Terminated by Employer)
Profile:
- Basic salary: AED 9,000
- Service: 2 years 6 months = 2.5 years
- Employer terminates
Calculation:
- Daily wage: 9,000 ÷ 30 = AED 300
- Gratuity: 300 × 21 × 2.5 = AED 15,750
- Employer termination = 100%
- Final: AED 15,750
Example 3: Logistics Coordinator (3 Years, Contract Expires)
Profile:
- Basic salary: AED 7,000
- Service: 3 years exactly
- Contract expires, not renewed
Calculation:
- Daily wage: 7,000 ÷ 30 = AED 233.33
- Gratuity: 233.33 × 21 × 3 = AED 14,700
- Contract expiry = 100% (no resignation penalty)
- Final: AED 14,700
JAFZA Free Zone Advantage
Scenario: You complete 3-year contract in JAFZA and decide not to renew.
Classification: Contract expiry (not resignation)
Gratuity: 100% entitlement (no penalty)
Mainland equivalent: If you resigned mid-contract at 3 years, you'd only receive 33.33% (one-third).
What's Included in "Basic Salary" for JAFZA?
Included in basic salary (counts for gratuity):
Fixed monthly wage stated in contract as "Basic Salary"
Any component explicitly labeled "part of basic" in contract
Excluded from basic salary (does NOT count):
Housing allowance
Transportation allowance
Meal allowance
Overtime pay
Annual bonuses
Performance incentives
Commission
Flight tickets
Education allowance
Example contract breakdown:
| Component | Monthly Amount (AED) | For Gratuity? |
|---|---|---|
| Basic Salary | 10,000 | YES |
| Housing Allowance | 3,000 | NO |
| Transportation | 500 | NO |
| Total Package | 13,500 | Use AED 10,000 only |
How to File a JAFZA Gratuity Complaint
If your JAFZA employer doesn't pay gratuity:
Step 1: Written request to employer
- Send formal email/letter requesting gratuity settlement
- Reference contract, service dates, and calculated amount
- Give 7-day response deadline
Step 2: File complaint with JAFZA Authority
- Visit JAFZA Labour Relations Department
- Location: JAFZA, Dubai
- Online portal: jafza.ae
- Required documents:
- Employment contract
- JAFZA work permit copy
- Payslips (last 6 months)
- Resignation letter or termination notice
- Your gratuity calculation
Step 3: Mediation
- JAFZA Authority mediates between you and employer
- Most cases resolved within 30-45 days
Step 4: JAFZA Labour Court (if unresolved)
- Escalate to JAFZA Court
- Legal representation recommended
- Court issues binding decision
JAFZA Contract Types (2025 Update)
Post-2022 reforms:
- All JAFZA contracts must be limited (fixed-term)
- Maximum 3 years duration
- Renewable indefinitely
- Unlimited contracts phased out (legacy only)
Gratuity impact:
- Service years aggregate across consecutive contract renewals
- No service reset between renewals (unless gratuity settled)
Example:
- Contract 1: 2020-2023 (3 years)
- Contract 2: 2023-2026 (3 years, renewed immediately)
- Total service in 2026: 6 years (not 3)
Common JAFZA Gratuity Mistakes
Mistake 1: Using gross salary instead of basic
- Wrong: (Total package ÷ 30) × 21 × years
- Correct: (Basic salary ÷ 30) × 21 × years
Mistake 2: Forgetting partial years
- Wrong: 4 years 8 months = 4 years
- Correct: 4.67 years (8 ÷ 12 = 0.67)
Mistake 3: Applying wrong resignation penalty
- Wrong: 4 years service = 33.33% (one-third)
- Correct: 4 years = 66.67% (two-thirds) — 3-5 year bracket
Mistake 4: Not checking contract expiry vs. resignation
- Contract expires: 100% gratuity (even if < 5 years)
- You resign early: Penalty applies if < 5 years
Other Dubai Free Zones
Similar gratuity rules apply in:
- DIFC (Dubai International Financial Centre)
- Dubai Airport Free Zone (DAFZA)
- Dubai Silicon Oasis (DSOA)
- Dubai Healthcare City (DHCC)
- Dubai Media City (DMC)
- Dubai Internet City (DIC)
Each free zone has its own authority and employment regulations, but gratuity formulas are largely consistent.
Downloadable Resources
For JAFZA employees:
- JAFZA Employment Regulations: jafza.ae
- Sample gratuity calculation worksheet: [Use calculator above]
- JAFZA Labour Relations contact: +971 4 881 7777
Frequently Asked Questions
1. Is JAFZA gratuity calculation different from mainland UAE?
No. The formula is the same: 21 days per year for first 5 years, 30 days thereafter. Resignation penalties also match.
2. Can I use a mainland MOHRE calculator for JAFZA?
Yes. Our calculator works for both. The calculation formula is identical.
3. Where do I file a JAFZA gratuity complaint?
With JAFZA Authority Labour Relations Department, not MOHRE. JAFZA has separate jurisdiction.
4. Does JAFZA have the 14-day payment rule?
Yes. Employers must settle gratuity within 14 days of termination, similar to mainland.
5. Can I transfer from JAFZA to mainland without losing gratuity?
When you leave JAFZA employment, you should receive gratuity settlement before Labour Card cancellation. Starting mainland employment is a separate contract.
6. Are JAFZA probation periods counted for gratuity?
No. Probation (up to 6 months) is excluded from gratuity service years, same as mainland.
JAFZA Gratuity Quick Reference
| Service Years | Days Per Year | Resign Penalty | Terminated/Expiry |
|---|---|---|---|
| 1-3 years | 21 | 33.33% | 100% |
| 3-5 years | 21 | 66.67% | 100% |
| 5+ years (additional) | 30 | 100% | 100% |
Official JAFZA Contact
JAFZA Authority:
- Phone: +971 4 881 7777
- Website: jafza.ae
- Email: info@jafza.ae
- Location: Jebel Ali Free Zone, Dubai, UAE
For labour disputes:
- JAFZA Labour Relations Department
- In-person visits: JAFZA Office 18, South Zone
Calculate Your JAFZA Gratuity Now
Free calculator using JAFZA-approved formula. Get accurate estimate in 30 seconds based on your contract details.
Related Resources
- UAE Gratuity Table 2025: Breakdown by Service Years
- How to Use Gratuity Calculator Step-by-Step
- Embed UAE Gratuity Calculator on Your Website
- Compare Gratuity Calculator UAE vs. Gulf Countries
For an instant end-of-service estimate, use our online gratuity calculator UAE.
Final Disclaimer: This guide reflects JAFZA employment regulations as of November 2025. JAFZA Authority is the final authority on free zone employment matters. This is informational content, not legal advice. For JAFZA-specific disputes, consult JAFZA Labour Relations or a qualified lawyer.
