The DIFC (Dubai International Financial Centre) follows distinct rules for gratuity payments that differ from those of other regions in the UAE, and no specific DIFC gratuity calculator is available.
While general gratuity calculators may help with some calculations, they do not fully reflect the specific provisions under DIFC law.
Let’s look at the essential aspects of gratuity calculations in 2025 within this special economic zone.
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DIFC Gratuity Calculator and Considerations
The Dubai International Financial Centre (DIFC) does not offer a specific gratuity calculator for end-of-service benefits.
However, the general UAE gratuity calculator follows the standard UAE labor law formulas, similar to those used for calculating past service gratuity under DIFC regulations.
Although these general calculators follow a similar formula for gratuity based on basic salary and length of service, they do not account for the DIFC’s unique provisions, particularly the DEWS.
Therefore, do not reflect the specific requirements of DIFC law and can’t be used as a DIFC gratuity calculator.
Gratuity Calculation for Non-Exempt Employees
For non-exempt employees under DIFC law, gratuity is calculated based on the basic salary and length of service. The general rules are as follows:
Employees with up to 5 years of service will receive a gratuity of 5.83% of their basic salary for each year worked.
For employees over 5 years of service, the gratuity increases to 8.33% of the basic salary for each additional year.
Example of Gratuity Calculation: An employee has worked for 4 years at a DIFC-based company with a basic salary of AED 10,000. The calculation would be:
5.83% of AED 10,000 x 4 years = AED 2,332.
This would be the total gratuity owed for the employee’s service.
Gratuity Calculation for Past Services
Employees who accrued gratuity before introducing the DEWS (Dubai Employee Welfare Scheme) on February 1, 2020, may transfer the gratuity amount for past service into the DEWS plan.
The calculation for past services under DIFC follows the same formula used in the standard UAE labor law. It is as follows:
For the first five years of service, employees receive 21 days of basic salary for each year worked. After five years of service, they receive 30 days of basic salary for each additional year.
The total gratuity for past services cannot exceed twice the annual wage. The basic salary must be at least 50% of the annual wage, and the daily rate is based on a 365-day year.
For past services, if the employee’s basic salary is AED 10,000 and he worked for 6 years before February 2020, the calculation would be:
First 5 years:
21 days x 5 years = 105 days of salary (AED 10,000 basic).
105 days = AED 2,876.71.
1 additional year beyond 5 years:
30 days x 1 year = 30 days of salary (AED 10,000 basic).
30 days = AED 833.33.
Total gratuity for past service (6 years): AED 2,876.71 + AED 833.33 = AED 3,710.04.
Gratuity Calculation for Exempted Employees
Gratuity calculations differ for employees who are UAE or GCC nationals and enrolled in the GPSSA (General Pension and Social Security Authority).
These employees may receive a top-up payment if their employer’s GPSSA contributions exceed the statutory minimum.
While general calculators follow the standard UAE labor law gratuity formula, they do not include the DEWS framework or the specific calculations and contributions that apply under DIFC law.
Consulting with a legal expert specializing in DIFC regulations is advisable for precise calculations.
Learn more about the UAE’s free zones gratuity calculation.
Legal Services Related to DIFC Gratuity Calculation
DIFC gratuity calculations can be complex, especially for employers and employees who need precise advice.
Our labor lawyer in Dubai specializes in legal services related to DIFC gratuity and end-of-service benefits.
- We ensure that all relevant factors, including the DEWS plan and specific gratuity provisions, are considered.
- We advise employees to maximize their gratuity entitlements and ensure they receive the correct benefits according to DIFC regulations.
- We guide employers in fulfilling their legal obligations regarding employee gratuity, including any necessary DEWS contributions and past service gratuity transfers.
If you need professional advice or assistance calculating DIFC gratuity, our expert legal team is here to help.
Reach out to ensure your gratuity calculations are accurate and compliant with the latest DIFC regulations.
FAQs about DIFC Gratuity Calculations
Conclusion.
Understanding the intricacies of the DIFC gratuity calculator is crucial for both employers and employees.
While general gratuity calculators follow the standard UAE labor law formula, they do not capture all the specific provisions under DIFC law, particularly the DEWS framework.
For precise, accurate calculations or legal assistance related to gratuity, it’s always best to consult a qualified legal professional.
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.
