Gratuity Calculator Dubai (2025) – Complete Guide to UAE, Free Zones & DIFC DEWS

Are you working in Dubai and planning to leave your job? Our Online Gratuity Calculator Dubai helps you to calculate your end of service benefits instantly and accurately, under the UAE Labour Law (Federal Decree Law No. 33 of 2021). Whether you are working in the private sector, a free zone, or a semi-government organisation, this guide explains everything you need to know about gratuity pay in Dubai.

You can use our free gratuity calculator Dubai to determine your or total end of service (EOS) benefits.

Simply Enter:

• Your basic monthly salary.
• Start and end date of the job.
• Reason for leaving (resignation or termination).

Our tool automatically uses the gratuity calculation formula provided under the UAE Labour Law to help you understand what you will get when your service ends.
This calculator is designed for the UAE and Dubai-based private sector employees. 

Generalised Formula for Gratuity Calculation in Dubai:

• First Five Years: 21 Days of Basic Salary for each year of service.
• Above 5 Years: 30 Days of basic salary for each year of service.

As per the rules and formula used by Dubai Trade. Rules for government and DIFC employees differ (explained below).

 What Are “Free Zones” in Dubai?

Free zones are special business areas in the UAE designed to attract global businesses by offering tax benefits, 100% foreign ownership, and simplified regulations where companies can operate under their own independent regulations, separate from the UAE Labour Law that applies to mainland companies. Together, these zones create a diverse ecosystem that drives Dubai’s position as a global business hub.

Dubai has more than 30 free zones, each managed by its own authority — e.g.:

 How Free Zone Laws Differ (Especially for Gratuity)

Most free zones have their own employment laws and dispute-handling systems. So, the gratuity calculation rules can vary depending on the employee’s work location:

• The mainland (under UAE Labour Law), or
• In a free zone (under zone-specific rules)

DIFC operates under its own Employment Law No. 2 of 2019. The DEWS ( DIFC Employee Workplace Savings) scheme was launched in February 2020, which has replaced the traditional End-of-Service gratuity system (EGS). DEWS is a funded, professionally managed, defined-contribution savings plan.

Key Features of the DEWS Plan:

For Employees

• Mandatory employer contributions: Your employer is required to make monthly payments to your DEWS account. The contributions are a percentage of your basic salary:
  • 5.83% of the basic monthly salary for less than five years of service.
  • 8.33% of the basic monthly salary for five or more years of service.
• Voluntary contributions: You can make additional voluntary contributions to the plan from your salary to enhance your savings.
• Funded and managed: Your end-of-service benefits are separated from your employer’s assets and are held by a trustee. This ensures the funds are secure and professionally managed.
• Investment options: You can choose from a range of investment funds with varying risk levels, including Sharia-compliant options. If you do not choose, your contributions are invested in the default Low/Moderate Growth Fund.
• Control and visibility: You can track your contributions and investment performance through an online portal or app.
• Portability: If you move to a new employer within the DIFC, a new DEWS account will be opened for you. You can either keep your old account invested or withdraw the funds. 

Upon leaving employment in the DIFC

• Access to funds: When your employment ends, you can withdraw your benefits as a lump sum or keep your funds invested in the plan to continue to grow.
• Voluntary savings withdrawal: You can access your voluntary savings while still employed, with up to two partial withdrawals per year, each up to 30% of the voluntary savings amount. 

Exemptions

 Certain employees are exempt from the DEWS plan, including:

• UAE and GCC nationals, who are instead covered by the General Pension and Social Security Authority (GPSSA).
• Employees who are covered by a qualifying alternative scheme that meets or exceeds the benefits of DEWS.

Benefits of DEWS over the traditional ESG

The DEWS plan was introduced to modernise the old system and provide greater financial security for employees. The key advantages are: 

• Funded plan: The monthly contributions guarantee that funds are available when an employee’s service ends. The old system was not always funded, presenting a risk to employees.
• Investment growth: Employee benefits can increase in value over time through professional investment, rather than simply being a lump sum based on their basic salary.
• Flexibility and choice: Employees have more control over their savings, with multiple investment options and the ability to make voluntary contributions. 

For enrolment in the DEWS Scheme, you may visit their official site DEWS Plan.

Many other free zones (e.g., DMCC, DAFZA, Dubai Silicon Oasis) still follow the UAE Labour Law unless otherwise stated by their respective zone authorities. For a detailed understanding of gratuity calculation rules for employees working in JAFZA, check here. 
Always check:

• Your employment contract, and
• The labour rules of your free zone authority.

Note: Free zone employees should confirm with their HR department whether gratuity applies under UAE law or a zone-specific regulation.

If your company is registered under the Ministry of Human Resources and Emiratisation (MOHRE), your gratuity is calculated under the Federal Labour Law.

 Key Rules:

• Must complete one full year of service.
• Resignation before 1 year = no gratuity.
• Unpaid leave is excluded from service duration.
• Deductions or penalties cannot be made from gratuity unless authorised by law.
• For resignations, partial gratuity may apply depending on service length (as per Article 51 of the Labour Law).
  

• Government entities and some semi-government institutions (e.g., Dubai Municipality, RTA, DEWA) have their own HR laws and benefit systems.
• Their end-of-service packages may differ from private-sector gratuity rules.
• Employees should refer to their organisation’s HR policy for accurate details.

Your Gratuity Calculator Dubai is a quick and reliable way to estimate your final settlement in accordance with the UAE Labour Law and Dubai-specific free zone regulations.
It empowers employees to plan better for their career transitions and understand their legal rights before leaving a job.
Whether you’re employed in the private sector, a Dubai free zone, or a semi-government entity, always review your employment contract and labour authority rules for the most accurate calculation.
Try our Dubai Gratuity Calculator now — and get instant, accurate results based on the latest laws of 2025.