Leaving your job in the Jebel Ali Free Zone (JAFZA)?
Then you deserve to know exactly how much end-of-service gratuity you’ve earned. Use our accurate JAFZA Gratuity Calculator to instantly calculate your payout based on current JAFZA labour rules.
Understanding the JAFZA Gratuity Calculator 2025 not only helps you avoid underpayment but also ensures that every dirham you’ve worked for is claimed confidently and correctly. Let’s explore how you can calculate your gratuity in JAFZA, what laws apply, and how to use our free online calculator to instantly check your payout.
What Is JAFZA and Why Gratuity Rules Matter
The Jebel Ali Free Zone (JAFZA) is one of the UAE’s largest and most established free zones. It operates under its own employment regulations, but these are closely aligned with the UAE Labour Law (Federal Decree-Law No. 33 of 2021).
Key Points:
- JAFZA employees are entitled to end-of-service gratuity upon completion of their employment.
- Gratuity is a mandatory payment, not a company bonus.
- JAFZA rules are designed to ensure fairness and consistency in employee compensation.
Reference: UAE Labour Law – Federal Decree-Law No. 33 of 2021, Article 51.
Understanding Gratuity Under JAFZA Labour Law
Under Article 51 of the UAE Labour Law, all employees who complete one or more years of continuous service are entitled to a gratuity payment when their contract ends — unless they are dismissed for specific disciplinary reasons.
Formula Basis
The gratuity is calculated based on:
- Type of contract (limited or unlimited)
- Total years of service
- Last basic salary (excluding allowances, bonuses, etc.)
💡 Note: In JAFZA, gratuity applies to both expats and UAE nationals (if not covered by pension).
Who Is Eligible for Gratuity in JAFZA
Eligibility depends on your employment duration and contract type.
| Employment Type | Minimum Service Required | Eligible For Gratuity? |
| Permanent/Full-time | 1 year | ✅ Yes |
| Less than 1 year | No minimum | ❌ Not eligible |
| Termination for misconduct | N/A | ❌ Not eligible |
| Resignation before 1 year | N/A | ❌ Not eligible |
Reference: Cabinet Resolution No. 1 of 2022, implementing UAE Labour Law.
How to Calculate Gratuity in JAFZA (Step-by-Step Formula)
Here’s how you can calculate your JAFZA gratuity manually:
Step 1: Identify Your Last Basic Salary
Take your final basic monthly salary (without allowances).
Step 2: Determine Your Total Service Period
Convert your employment duration into complete years and months.
Step 3: Apply the Formula
JAFZA Gratuity Formula
Gratuity = (21 days' basic salary × first 5 years of service)
+ (30 days' basic salary × each additional year after 5 years)Step 4: Apply the Service Cap
Maximum gratuity cannot exceed two years’ salary.
Law Reference: Article 51(5), UAE Labour Law – gratuity shall not exceed 2 years of wages.
Example: JAFZA Gratuity Calculation for Different Scenarios
Let’s look at practical examples so you can easily compare your case:
Example 1: Resignation After 3 Years
- Basic Salary: AED 6,000
- Duration: 3 years
- Formula: 21 days × 3 years = 63 days
- Gratuity = (6,000 ÷ 30 × 63) = AED 12,600
Eligible for full gratuity since service > 1 year.
Example 2: Resignation After 7 Years
- Basic Salary: AED 8,000
- 5 years × 21 days + 2 years × 30 days
- = (105 + 60) = 165 days
- Gratuity = (8,000 ÷ 30 × 165) = AED 44,000
Eligible for full gratuity.
Example 3: Termination After 10 Years
- Basic Salary: AED 10,000
- 5 years * 21 days + 5 years * 30 days
- = (105 + 150) = 255 days
- Gratuity = (10,000 ÷ 30 × 255) = AED 85,000
Maximum gratuity capped at 2 years’ salary = AED 240,000 (if exceeded).
How to Use the JAFZA Gratuity Calculator 2025 Online
Instead of manual math, you can use our Free JAFZA Gratuity Calculator 2025
Steps to Use:
- Visit → JAFZA Gratuity Calculator Tool
- Enter:
- Joining & End Date
- Last Basic Salary (AED)
- Employment Type (Limited/Unlimited)
- Click “Calculate”
- Instantly view:
- Total service duration
- Gratuity days & total payout
- Detailed breakdown
Simple. Accurate. Instant.
The tool follows updated 2025 JAFZA rules based on Federal Decree-Law No. 33 of 2021.
Factors That Affect JAFZA Gratuity Amount
Several conditions can increase or reduce your gratuity:
| Factor | Impact |
| Type of Contract | Limited contracts provide more protection. |
| Reason for Leaving | Resignation before 1 year → No gratuity. |
| Misconduct Termination | Gratuity forfeited. |
| Unpaid Leave | Deducted from total service. |
| Salary Changes | Based on last basic salary only. |
Pro Tip: Keep your payslips and contract safe — they determine your final calculation.
JAFZA Gratuity Rules and Payment Limits
According to UAE Labour Law Article 51 (1 – 7) and JAFZA Employee Regulations:
- Gratuity applies after 1 year of continuous service.
- Payment must be made within 14 days of termination.
- Calculation is based only on basic salary.
- Maximum limit = 2 years’ wage.
- Dismissal under Article 44 (disciplinary cases) → no gratuity.
Legal Reference: Federal Decree-Law No. 33 of 2021, Article 51.
Final Settlement Components for JAFZA Employees
When leaving JAFZA, your final settlement includes more than just gratuity:
| Component | Description |
| Gratuity | Based on years of service |
| Remaining Salary | Any unpaid salary |
| Annual Leave Balance | Paid for unused leave |
| Notice Period Pay | If applicable |
| Deductions | Advance loans or fines |
Tip: Use our calculator to get your net final settlement along with gratuity.
Legal Help for JAFZA End-of-Service Issues
If your company fails to pay your gratuity or delays the payment:
What You Can Do:
- Contact JAFZA HR Department (employee support desk).
- File a complaint with MOHRE (Ministry of Human Resources & Emiratisation).
- If unresolved, file a case in the Dubai Labour Court.
FAQs About JAFZA Gratuity Calculation
Q1: What is the minimum period to get gratuity in JAFZA?
ANS: You must complete 1 year of continuous service.
Q2: Does JAFZA follow UAE Labour Law?
Yes – JAFZA’s employment laws are derived from Federal Decree-Law No. 33 of 2021, but may have zone-specific variations.
Q3: Is gratuity taxable in the JAFZA & UAE?
No, gratuity is not taxable in the UAE or JAFZA. Employees receive their gratuity payment in full, without any income tax deductions, as the UAE has a tax-free salary structure.
Q4: What are the rules for Jafza gratuity?
Under JAFZA labour law, employees who complete one year of continuous service become eligible for gratuity. The payment depends on basic salary, contract type (limited or unlimited), and service duration – all following UAE Labour Law Article 139 guidelines.
Q5:How gratuity is calculated in free zone UAE?
Gratuity in Free Zone companies, including JAFZA, is calculated based on 21 days’ basic salary per year for the first five years and 30 days per year after that, using the official JAFZA gratuity formula.
Q6: How can I calculate my gratuity?
You can calculate your gratuity by multiplying your basic salary with the number of eligible service years, using the 21 or 30 days formula as per UAE Labour Law.
Q7: Can gratuity be with held for misconduct?
Yes, under Article 44, gratuity may be forfeited for proven disciplinary offenses.
Conclusion: Calculate Your JAFZA Gratuity Confidently
Understanding how the JAFZA Gratuity Calculator 2025 works empowers you to protect your hard-earned rights.
By knowing the exact formula, legal references, and rules under UAE Labour Law Article 51, you can verify your employer’s payout confidently.
Every dirham you’ve earned reflects your dedication — make sure you claim it with accuracy, clarity, and pride.
Use our Free JAFZA Gratuity Calculator 2025 now to find your real gratuity in seconds and secure what truly belongs to you.