Understanding the calculation of end-of-service gratuity within the Dubai International Financial Centre (DIFC) is essential for employers and employees.
This article provides an overview of the DIFC gratuity calculator, reflecting the current laws as of 2025, and outlines our firm’s legal services in this area.
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DIFC Gratuity Calculator Rules
In 2024, the DIFC amended its Employment Law, particularly concerning end-of-service benefits.
Employers must now make “top-up” payments into a Qualifying Scheme, such as the DIFC Employee Workplace Savings (DEWS) scheme, for their GCC national employees.
This ensures that these employees receive benefits equivalent to those of their non-GCC counterparts.
The “top-up” applies when the General Pension & Social Security Authority (GPSSA) contributions are less than the mandatory end-of-service contributions stipulated by the DIFC Employment Law.
Notably, this requirement is subject to a minimum threshold of AED 1,000 per month.
For employees not covered by the DEWS scheme, end-of-service gratuity is calculated based on their basic salary and length of service. The standard calculation is:
- 21 days of basic salary for each year of service for the first five years.
- 30 days of basic salary for each additional year beyond five years.
- The total gratuity should not exceed two years’ worth of the employee’s basic salary.
The Dubai International Financial Centre (DIFC) does not offer a specific gratuity calculator for end-of-service benefits. However, general gratuity calculators, such as the UAE Gratuity Calculator, can provide a rough estimate based on standard UAE labor laws.
While such calculators can provide a general idea, they may not accurately reflect the specific provisions applicable within the DIFC. For precise calculations, it’s advisable to seek professional legal advice.
Learn more about the UAE’s free zones gratuity calculation.
Legal Services Related to DIFC Gratuity Calculations
Our labor lawyer in Dubai specializes in providing comprehensive legal services related to DIFC gratuity calculations, including:
- Advisory Services: Offering guidance on the latest DIFC Employment Law amendments to ensure compliance with end-of-service benefit regulations.
- Gratuity Calculation Assistance: Assisting in accurately calculating gratuity entitlements for employers and employees, considering the recent legal changes.
- Policy Development: Helping employers develop internal policies that align with DIFC regulations on end-of-service benefits.
- Dispute Resolution: Representing clients in disputes related to gratuity payments, ensuring their rights are protected under the current laws.
- Training and Workshops: Conducting sessions to educate HR professionals and employees about their rights and obligations concerning end-of-service benefits in the DIFC.
FAQs about Gratuity Calculation in DIFC
Understanding the DIFC gratuity calculator and staying informed about the latest legal requirements is crucial for legal compliance and financial planning.
Contact our labor law firm in UAE for expert help. Click the Whatsapp icon below.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.