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JAFZA gratuity: how end of service is calculated in Jebel Ali Free Zone

By Gratuity Calc UAE. Last reviewed .

If you work for a company in Jebel Ali Free Zone, your gratuity follows the same federal rules as the rest of the UAE private sector. You can use our main calculator for it.

Which law applies in JAFZA

JAFZA companies are licensed by the free zone authority, and employees are sponsored through it instead of through a mainland MOHRE work permit. The free zone has its own employment rules and standard contract, but on end of service gratuity these follow the federal Labour Law.

This is different from the DIFC and ADGM financial free zones, which have separate employment laws and their own end of service arrangements.

How JAFZA gratuity is calculated

  • 21 days of basic salary for each of the first five years of service
  • 30 days of basic salary for each year after that
  • At least one year of continuous service is needed
  • The total cannot be more than two years of basic salary

Example

A warehouse supervisor in JAFZA earns a basic salary of AED 4,500 and leaves after six complete years.

  • First five years: 4,500 × 21 ÷ 30 × 5 = AED 15,750
  • Year six: AED 4,500
  • Gratuity: AED 20,250

Calculate your amount

Open the gratuity calculator, enter your basic salary and dates, and choose Limited as the contract type.

If there is a dispute

Free zone employees normally raise an employment problem with the free zone authority first, which tries to mediate between the employee and the company. If that does not resolve it, the case can go to the labour court.

Frequently asked questions

Is JAFZA gratuity different from mainland gratuity?

No. The same 21-day and 30-day scale and the same two-year cap apply.

Can I use this calculator for DIFC or ADGM?

No. Those two free zones have their own employment laws and end of service rules.