Jafza Gratuity Calculator and Rules Complete Guide 2025

Understanding the gratuity rules in JAFZA (Jebel Ali Free Zone Authority) is essential for both employers and employees. Whether you’re ending your service or simply planning ahead, knowing how your end-of-service benefits are calculated under JAFZA’s specific regulations can make a big financial difference. This guide will explain JAFZA gratuity calculation, eligibility, and the difference between JAFZA and other UAE labour laws.

What is Gratuity in JAFZA?

Gratuity in JAFZA is a lump sum payment made to an employee at the end of their service period. It acts as a token of appreciation for the years spent working in the free zone. Similar to the gratuity UAE law, JAFZA follows guidelines aligned with the UAE Labour Law but includes specific rules for free zone employees.

Employees working in JAFZA under an unlimited or limited contract are eligible for gratuity as long as they have completed at least one year of continuous service.

Who is Eligible for JAFZA Gratuity?

Eligibility depends on:

• Completion of minimum one year of service
• Voluntary resignation or contract completion
• Termination not related to gross misconduct

If you’re unsure about your contract type, read our guide on Limited vs Unlimited Contract UAE to better understand your employment terms.

How is Gratuity Calculated in JAFZA?

The formula used in JAFZA is based on the basic salary and years of service. The basic calculation is:

For the first 5 years:

• 21 days of basic salary for each completed year of service

Beyond 5 years:

• 30 days of basic salary for each additional year

However, the total gratuity must not exceed two years’ basic salary.

For exact figures, employees can use the JAFZA Gratuity Calculator or refer to the standard UAE Gratuity Calculation method as both follow similar patterns.

How is Gratuity Calculated in JAFZA?

The formula used in JAFZA is based on the basic salary and years of service. The basic calculation is:

For the first 5 years:

• 21 days of basic salary for each completed year of service

Beyond 5 years:

• 30 days of basic salary for each additional year

However, the total gratuity must not exceed two years’ basic salary.

For exact figures, employees can use the JAFZA Gratuity Calculator or refer to the standard UAE Gratuity Calculation method as both follow similar patterns.

JAFZA Gratuity Calculator Example 

Let’s say an employee’s basic salary is AED 10,000 and they’ve worked for 7 years:

• First 5 years: 21 days × 5 = 105 days
• Remaining 2 years: 30 days × 2 = 60 days
• Total: 165 days of salary

Now, convert that into monthly terms:

• Daily wage = 10,000 ÷ 30 = AED 333.33
• Gratuity = 165 × 333.33 = AED 54,999.45

This amount would be the employee’s end-of-service benefits if there are no deductions or penalties.

Is Gratuity Different in Free Zones?

Yes, although JAFZA is governed by UAE Labour Law, free zones like JAFZA may have internal policies, especially when it comes to notice periods or dispute handling.

To understand this contrast better, compare with the Gratuity UAE Law which applies across the mainland. If you work outside of JAFZA, your gratuity calculation might slightly differ.

Resignation vs Termination What Happens to Your Gratuity?

• If an employee resigns after completing 1 year, they are entitled to gratuity.
• If terminated without valid reason, full gratuity applies.
• However, if dismissed for misconduct, gratuity can be forfeited.

For more details, check our article on Employer Denies Gratuity Payment to understand what to do in such scenarios.

Gratuity and Domestic Workers

It’s important to note that gratuity for housemaids or domestic workers in the mainland follows a slightly different process. If you’re hiring or working in domestic roles, refer to our dedicated Gratuity Calculator UAE for Domestic Workers guide.

What if Your Gratuity is Delayed?

If your gratuity is not paid within the legal period (usually 14 days from the termination date), you have the right to file a complaint.

Here’s how: Visit the MOHRE platform or learn more through our post on File Complaint for Delay in Gratuity Payment.

Final Words

Whether you are about to resign or just planning for the future, using a gratuity calculator helps you estimate your benefits. Make sure your contract is clear, understand your rights under both JAFZA and UAE Labour Law, and don’t hesitate to seek legal help if your employer denies payment.

Also, if you’re not sure how gratuity fits into your overall benefits, read our explanation on Is Gratuity Part of CTC.