Correction, 7 October 2026: This guide has been revised to remove unsupported salary-band calculations, automatic old/new-law splits and assumptions that DIFC and ADGM share the same benefits system.
Your employer’s governing employment law matters more than the words “free zone” on a search result. Do not apply one calculator to every zone.
JAFZA, DMCC and other non-financial free zones
Federal labour-law rules generally govern private-sector employment in non-financial free zones, subject to the applicable arrangement and authority procedures. Confirm this with the employer and zone. A federal Savings Scheme enrolment changes how the covered period is treated.
| Arrangement | What to check |
|---|---|
| Federal standard gratuity | Last basic wage and qualifying service |
| DIFC | DEWS or another qualifying scheme; pre-scheme gratuity and exemptions |
| ADGM | Employment Regulations 2024 section 61; gratuity or qualifying pension arrangement |
| Federal Savings Scheme | Protected pre-enrolment gratuity and fund statement |
ADGM is distinct from DIFC
ADGM’s Employment Affairs Office describes its own gratuity rules. DIFC’s qualifying-schemes guidance covers DEWS and alternatives. ADGM should not be described as automatically replacing gratuity with DEWS.
Choose the right complaint channel
Ask the relevant zone about employment complaints and jurisdiction. Do not assume that a federal-style calculation means every procedural step is handled directly by MoHRE.
The standard federal calculation
For a foreign full-time employee under federal private-sector law, Article 51 uses the last basic wage: 21 days for each of the first five qualifying years, then 30 days for each additional year. After one year of continuous service, fractions of a year are counted proportionately. Unpaid absence is excluded from the gratuity service calculation. Housing and transport allowances are not part of the basic-wage calculation. The statutory ceiling is two years’ wage; keep the distinction between basic wage and total contractual wage clear.
Check which rules apply before using a calculator
DIFC’s DEWS or another qualifying scheme, ADGM employment regulations and the federal alternative Savings Scheme have distinct rules. Part-time work needs its contractual hours ratio; domestic, government and pension-covered employment are outside this standard calculation. Use the free-zone comparison to identify your arrangement.
Compare an itemised breakdown
Use the Final Settlement Checker for a standard federal monthly-paid case. Ask HR for the wage basis, qualifying service, unused leave, notice position, earned pay and each proposed deduction. A calculator estimate is a starting point for questions, not a decision on your legal entitlement.
Reviewed 7 October 2026. General information, not personalised legal advice. If the contract, service continuity, salary change or deduction is disputed, confirm the facts with the relevant authority or a qualified employment adviser.