The Dubai International Financial Centre and Abu Dhabi Global Market are the two free zones where the federal Labour Law does not apply. Each has its own employment law, and each handles end of service pay in its own way. If you work in either, the standard UAE gratuity calculator is not built for you.
At a glance
| Mainland and other free zones | DIFC | ADGM | |
|---|---|---|---|
| What you get | Gratuity lump sum | Monthly employer contributions to a savings plan | Gratuity lump sum, or a pension or savings scheme |
| Rate | 21 days a year, then 30 days | 5.83% of basic, then 8.33% | 21 days a year, then 30 days |
| Ceiling | Two years of basic salary | None on contributions | Removed under the current regulations |
DIFC: the DEWS plan
Since 1 February 2020, DIFC employers no longer build up a gratuity debt for each employee. They pay a contribution every month into a workplace savings plan instead. The default plan is the DIFC Employee Workplace Savings plan, known as DEWS, although an employer may use another approved scheme.
How much the employer pays
- First five years of service: at least 5.83% of your basic salary each month.
- After five years: at least 8.33% of your basic salary each month.
Those percentages are not arbitrary. 5.83% is 21 days out of a 360-day year, and 8.33% is 30 days, so the contributions mirror the gratuity scale they replaced.
On a basic salary of AED 20,000, that is AED 1,166 a month for the first five years and AED 1,666 a month after that.
What is different for you
- The money is invested in funds you can choose from, so the final amount depends on how those investments perform. It can be more or less than a gratuity would have been.
- You can add voluntary contributions of your own.
- When you leave your employer, you receive the value of your account.
Service before February 2020
Gratuity stopped building up on 31 January 2020. Whatever you had earned up to that date is still yours. It is either paid to you when you leave or transferred into your DEWS account.
ADGM: gratuity, with changes from 2025
ADGM kept the traditional gratuity. An employee with at least one year of continuous service earns 21 days of basic pay for each of the first five years and 30 days for each year after that.
New ADGM Employment Regulations took effect in April 2025. According to guidance published by law firms on the changes:
- The former ceiling of two years' pay on gratuity was removed.
- Gratuity is now payable in every case where the employee has more than one year of service, including dismissal for cause.
- For the calculation, basic salary must be at least 50% of total salary.
- Final dues must be paid within 21 days of the termination date, with a daily penalty for late payment.
- Employers may still offer a pension or savings scheme in place of gratuity.
Because the first two points differ from the federal rules, a federal calculator can understate what a long-serving ADGM employee is owed.
How do I know which law covers me?
Look at who employs you and where the company is licensed, not where you sit. If your employer holds a DIFC or ADGM licence and your contract refers to that zone's employment law, you are under its rules. Employees of mainland companies, and of other free zones such as JAFZA, DMCC or Dubai Internet City, come under the federal Labour Law and can use our gratuity calculator.
The federal savings scheme is a separate thing
Outside the two financial free zones, the UAE has its own voluntary savings scheme that an employer can choose in place of gratuity. It uses the same contribution percentages as DEWS, but it is a different system run under federal rules.
Frequently asked questions
Do DIFC employees get gratuity?
Not for service since 1 February 2020. Their employer pays monthly contributions into DEWS or another approved plan instead. Gratuity earned before that date is still owed.
What is the DEWS contribution rate?
At least 5.83% of basic salary for the first five years of service and 8.33% after that, paid by the employer.
Is ADGM gratuity capped at two years of salary?
Published guidance on the regulations in force since April 2025 says the two-year cap has been removed.
Can I use the UAE gratuity calculator for DIFC or ADGM?
No. Both zones have their own employment laws, so a calculator built on the federal Labour Law does not apply.
Sources
- Government of Dubai Media Office: launch of the DIFC Employee Workplace Savings plan.
- Clyde & Co: summary of the new ADGM Employment Regulations.
- Al Tamimi & Company: key changes in the ADGM Employment Regulations 2024.