Jafza Gratuity Calculator and Rules in UAE 2026
Jebel Ali Free Zone Authority, also known as JAFZA, is the land of job opportunities in the UAE. Jafza is a leading business hub in Dubai, famous for its tax reliefs, investments, and employee benefits in the Middle East. Knowing the Jafza gratuity calculator rules is important for both employers and employees, as it aligns the employment contract with the UAE labour law to avoid heavy penalties.
Gratuity is not a tip; it’s a legal benefit in the UAE that an employee gets on leaving the job after one year. Employees can calculate their gratuity amount using the gratuity calculator Dubai. Determining Jafza end of service benefits is like solving a puzzle. The good news is that it doesn’t have to be that difficult. This article will guide you on the online Jafza end of service calculator and Jafza gratuity rules. Let’s go!
How does Jebel Ali Free Zone Authority (JAFZA) work?
Understanding the specific Jafza rules is so important when it comes to things like your contract and gratuity. Jafza is a free economic zone operating in Dubai, United Arab Emirates, having exceptional infrastructure and top-notch buildings around. Jafza is a governing body, and it is the management office for the entire free zone that secures the legal benefits of companies and employees located in the Jafza zone.
It’s like an industrial area that handles everything from issuing business licenses and visas to managing the world-class infrastructure. It encourages companies to adhere UAE labour law and pay the gratuity amount to the employees.
Companies in Jafza and free zones can get the following benefits;
Each type of company, such as e-commerce, logistics, and manufacturing, is operating in the Jafza free zone. It’s a real estate of companies that provide opportunities and play a vital role in the UAE’s economic growth by attracting foreign investments and trade. You can Jafza website here.
Understanding Jafza Gratuity Rules and Eligibility Criteria
Jafza provides equal opportunity to employees, financial security to both employer and employee, and ensures fairness in the legal benefits for both as per UAE labour law rules.
But first things first. Before diving deep into the Jafza gratuity calculator rules, you must know which factors the Jafza gratuity calculations are based on and how the Jafza gratuity is calculated.
To get things smooth, let’s explore who is eligible for Jafza gratuity payment and what other conditions matter the most.
Minimum Service Requirement
Generally, suppose a company is based in Jebel Ali Free Zone Authority (Jafza). In that case, employees must complete one year of service in the company to receive the gratuity amount.
This Jafza rule applies to all types of Jafza employment contracts. However, the type of employment contract directly affects the qualifications for gratuity payment.
Here are the gratuity calculation difference between the limited and unlimited contract types;
Note: It is important to stay updated with the Jafra labour law to avoid legal misconceptions and penalties under Article 39 of the UAE labour law. The Jafza gratuity calculator provides the estimated amount of gratuity; however, the final approval comes from Jafza’s Legal Affairs Department.
Gratuity Limit
The gratuity limit is defined as the maximum amount of gratuity an employee can get from the employer while leaving the job. The maximum cap on the gratuity limit is the two years’ basic salary of the employee.
Is it confusing? Let me explain to you. For example, if basic salary is 1500 AED, the employee can get only AED 24,000 as a maximum limit on the gratuity amount. So, even if you have been working for a company for so long, the maximum gratuity amount you will receive is only 24 months’ basic salary.
Gratuity Rules on Resignation
According to the Jafza labour law for resignation, make sure you have completed at least one year of service because the Jafza gratuity calculator doesn’t allow a company to pay gratuity to employees under one year of service. It is considered ineligible.
If you resign after completing one year of service, the gratuity amount will depend on the contract type (limited or unlimited) and the number of service years you have worked there.
Gratuity Rules on Termination
You are still eligible for the Jafza gratuity amount even if the company doesn’t require your services anymore after one year of your service. But keep in mind that the company reserves the right to refuse to pay the gratuity amount only if you were terminated for a serious reason, such as major misconduct, under Article 44 of the Jafza labour law UAE.
Case of Employee’s Death
In the unfortunate scenario, if an employee dies, the company will pay the gratuity amount to the family of the employee according to the Jafza employment contract UAE. As per Jafza rules, there is no requirement to complete at least one year of service in case of death. Legal heirs of the employee can submit the written gratuity application to the company on a specific gratuity application format.
Deductions from Gratuity Amount
Employers cannot deduct any outstanding amount, such as loans, advances, and debts, from the gratuity amount, as the gratuity amount should be calculated as per the actual amount according to the UAE labour law. However, the company reserves the right to deduct any outstanding amount from the final settlement amount.
Example for Jafza Gratuity Calculation
Employee: Maryam Al-Obaid
Basic Salary: AED 10,000/month
Service: 7 years (2 years 3 months)
Reason for Leaving: Resignation with notice
Daily Salary: (Monthly Salary x 12) / Days in a Year = AED 328.77
First 5 Years: Daily Salary x 21 days/year x 5 years = AED 34,778.85
Remaining Period (Days): (Years x 12 months) + Remaining Months = 810 days
Remaining Period Gratuity: Daily Salary x 30 days/year x Remaining Period (in years) = AED 78,604.05
Capped Total Gratuity: Minimum of AED 240,000 (2 years’ salary)
Key Points
How to Calculate Gratuity in Jafza?
The Ministry of Labour of the UAE instructs companies to pay the end-of-service gratuity benefits to employees operating in the Jafza, Dubai Trade, and other free zones.
The Jafza has introduced a digital tool for businesses and employees to calculate the estimated amount of the gratuity they will get upon leaving the job. Dubai Trade develops the Jafza gratuity tool.
To calculate the accurate figures from the Dubai Trader calculator, an employee must know the following;
Why online Jafza gratuity calculator is important?
Gratuity is a special treatment given to an employee upon leaving the organization. They deserve to be treated well when it comes to financial matters, as they have spent their prime years working for a company.
That’s the reason Jafza rules define the boundaries for both employers and employees under Article 139 of the UAE labour law to secure the financial aspects of end-of-service gratuity benefits.
The Jafza gratuity calculator automates the gratuity payment calculation, which enhances efficiency even with limited resources.
Final Words
It’s crucial to get familiar with the Jafza gratuity calculator and its rules of calculations to secure your end-of-service benefits, especially if you are working under Jebel Ali Free Zone. Staying updated with the MOHRE guidelines will not only help you to get paid, but you will also be confident that you are getting the correct amount of gratuity.
While working in the Dubai, the Jafza gratuity calculator provides you with the correct estimated amount of the gratuity that you owe. This calculator makes sure you have received every Dirham you have earned while working in the UAE.
