JAFZA Gratuity: What You Need to Know
JAFZA is one of the UAE's largest free zones, hosting thousands of companies. Unlike DIFC or ADGM which have their own employment frameworks, JAFZA employees are typically entitled to gratuity under the federal UAE Labour Law.
That is the main part of the JAFZA framework employees should know. Even though JAFZA is a free zone, most workers still look back to the federal gratuity formula unless their contract gives a better benefit.
Standard Formula (JAFZA)
- ✅ First 5 years: 21 days × basic salary / year
- ✅ Beyond 5 years: 30 days × basic salary / year
- ✅ Max cap: 2 years total basic salary
- ✅ Min service: 1 complete year
JAFZA vs DIFC
- 🔵 JAFZA → Federal Labour Law → Lump-sum gratuity
- ⚪ DIFC → DIFC Employment Law → DEWS savings plan
- 📋 Always check your specific employment contract
How JAFZA Differs from Mainland
The gratuity formula is usually the same, but the setup is not identical. A mainland company follows the normal mainland employer process, while a JAFZA company operates inside the free zone authority. So the paperwork and internal process can feel different even when the end result uses the same 21-day and 30-day calculation.
How Gratuity is Calculated in JAFZA
The UAE Federal formula applies: your daily wage is calculated as Basic Salary ÷ 30, then multiplied by the applicable days (21 or 30) and years.
| Basic Salary (AED) | Years of Service | Gratuity (AED) |
|---|---|---|
| 5,000 | 3 years | 10,500 |
| 10,000 | 5 years | 35,000 |
| 15,000 | 8 years | 97,500 |
| 20,000 | 10 years | 155,000 |