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JAFZA Gratuity Calculator

JAFZA Gratuity Calculator in Dubai 2025: Comprehensive Guide to End-of-Service Benefits

    Understanding end-of-service benefits is crucial for both employees and employers in the Jebel Ali Free Zone (JAFZA). This guide provides an in-depth look at the JAFZA gratuity calculator, gratuity rules, and the components involved in final settlement calculations.

    For personalized assistance with JAFZA end-of-service calculations, click the WhatsApp icon below.

    JAFZA End of Service Calculator

    The JAFZA gratuity calculator is an online tool provided by Dubai Trade to estimate gratuity payments for employees concluding their service. To use this calculator, input the following details:

    • Employee’s Name
    • Joining Date
    • End Date
    • Basic Salary.

    Note: This calculator provides an estimate. The final gratuity amount is subject to approval by JAFZA’s Labour Affairs section.

    Gratuity Calculation Breakdown

    The gratuity calculation breakdown is:

    • For the first 5 years of service: 21 days of basic salary for each year worked.
    • For service beyond 5 years: 30 days of basic salary for each additional year worked.
    • Maximum gratuity: The total gratuity payment should not exceed two years’ basic salary.

    Example:

    • Basic Salary: AED 10,000
    • Joining Date: January 1, 2015
    • End Date: January 1, 2022 (7 years of service)

    Calculation:

    • First 5 years: 5 years × 21 days × AED 10,000 ÷ 30 = AED 35,000
    • Next 2 years: 2 years × 30 days × AED 10,000 ÷ 30 = AED 20,000
    • Total gratuity: AED 35,000 + AED 20,000 = AED 55,000

    Since the gratuity should not exceed two years of basic salary (AED 60,000), the employee’s gratuity amount would be AED 55,000.

    What are the JAFZA Gratuity Rules?

    After we explained the details about JAFZA gratuity calculator, you should understand the JAFZA gratuity rules, which are essential for both employers and employees.

    Eligibility:

    • Employees must complete at least one year of continuous service to be eligible for gratuity payments.
    • Employees dismissed for misconduct or those who resign before completing one year of service are not entitled to gratuity.

    Gratuity Payment Limit:

    • The total gratuity payment should not exceed two years’ worth of the employee’s basic salary, regardless of the length of service.

    Contract Types:

    • Both limited and unlimited contracts are recognized in JAFZA.
    • The type of contract can affect the gratuity calculation, especially in cases of resignation.

    Final Settlement Calculation Components

    When an employee concludes their employment in JAFZA, the final settlement includes several components:

    1. Gratuity Payment

    Calculated as per the gratuity calculator JAFZA, based on the employee’s basic salary and length of service.

    2. Outstanding Wages

    Includes any unpaid salary, overtime, or bonuses up to the last working day.

    3. Payment for Unused Leave

    Employees are entitled to payment for any accrued but unused annual leave, calculated based on their daily wage.

    4. Deductions

    Deductions may include:

    • Unpaid loans or advances.
    • Penalties for damaged or unreturned company property.
    • Unpaid contributions to social security or pension schemes.

    All deductions must be in accordance with the employment contract and applicable labor laws.

    5. Notice Period Deductions

    • If an employee leaves without completing the required notice period, the employer may deduct an amount equivalent to the salary for the notice period not served.
    • Conversely, if the employer terminates the employee without sufficient notice, compensation for the notice period must be paid.

    6. Company Property Final Clearance

    Employees must return all company property (e.g., ID cards, keys, equipment) before the settlement is finalized. Failure to do so can result in deductions from the settlement.

    Legal Services for JAFZA End-of-Service Calculations

    Our employment lawyers in dubai specialize in employment law within JAFZA, offering services directly related to end-of-service calculations:

    1. Employment Contract Review: Ensuring contracts comply with JAFZA regulations, clearly outlining end-of-service benefits.
    2. Gratuity Calculation Assistance: Providing precise calculations of gratuity entitlements, considering the latest laws and individual employment terms.
    3. Dispute Resolution: Representing clients in disputes over end-of-service benefits, striving for fair settlements in line with JAFZA regulations.
    4. Legal Compliance Advisory: Advising employers on adhering to JAFZA’s employment laws to prevent potential legal issues related to end-of-service benefits.

    To engage our legal services for your JAFZA end-of-service needs, please click the WhatsApp button located at the bottom of the screen.


    FAQs about JAFZA Gratuity Calculation

    Based on basic salary and service length: 21 days/year for first 5 years, 30 days/year thereafter, using JAFZA's official calculator.
    Employees completing ≥1 year of continuous service, excluding those dismissed for misconduct.
    Capped at two years' worth of the employee's basic salary.
    Yes, including unpaid loans, penalties for unreturned company property, and unpaid social security/pension contributions.
    Use JAFZA's official Gratuity Calculator and consult legal professionals for compliance verification.

    Navigating end-of-service benefits in JAFZA requires a clear understanding of gratuity rules and accurate calculations. Utilizing tools like the JAFZA gratuity calculator and seeking expert legal advice ensures compliance and fairness in the final settlement process.

    For expert legal assistance in your JAFZA end-of-service matters, please click the WhatsApp button located at the bottom of the screen to connect with our distinguished legal team.

    Read more about Jafza Employment Rules and Regulations.

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