In this article, we will examine the details of the DIFC gratuity calculator and its application within the framework of the Dubai International Financial Centre’s regulations as of 2025.
While the DIFC has its own distinct rules for gratuity calculations, it is essential to understand the differences between these and general UAE gratuity calculations.
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DIFC Gratuity Calculator and Rules
UAE gratuity calculators follow the labor law formula, but they do not account for DIFC-specific rules like the DEWS plan.
Therefore, to ensure precise and accurate gratuity calculations, consulting with legal experts is highly recommended.
However, the following section explains DIFC gratuity calculations, accompanied by examples.
DIFC Gratuity Calculation for Non-Exempt Workers
In the DIFC, gratuity is calculated based on the employee’s basic salary and length of service. There are two key brackets for gratuity calculation:
- Up to 5 years of service: Employees receive 5.83% of their basic salary for each year worked.
- More than 5 years of service: Employees receive 8.33% of their basic salary for each additional year worked.
Short Service Example Calculation
Let’s say an employee has been with the company for 1.5 years and their basic monthly salary is AED 8,000.
Minimum contribution rate (less than 5 years): 5.83%
Basic monthly salary: AED 8,000
- Minimum Monthly Contribution = (5.83 / 100) * 8,000
- Minimum Monthly Contribution = 0.0583 * 8,000
- Minimum Monthly Contribution = AED 466.40
In this case, the employer would need to contribute a minimum of AED 466.40 per month.
Long Service and Higher Salary Example Calculation
Let’s take an employee with 10 years of service and a basic monthly salary of AED 25,000.
Minimum contribution rate (5 years or more): 8.33%
Basic monthly salary: AED 25,000
- Minimum Monthly Contribution = (8.33 / 100) * 25,000
- Minimum Monthly Contribution = 0.0833 * 25,000
- Minimum Monthly Contribution = AED 2,082.50
In this scenario, the employer’s minimum monthly contribution would be AED 2,082.50.
Past Service Gratuity Calculation Examples
Example 1: Service Less Than 1 Year.
Consider an employee who worked for 10 months.
According to the rules, employees with less than one year of service are generally not entitled to gratuity.
Example 2: Service More Than 5 Years (Different Duration and Salary)
Consider an employee who worked for 12 years. Their last basic monthly salary was AED 20,000.
Service Duration: 12 years (more than 5 years).
Last Basic Monthly Salary: AED 20,000
Daily Salary = AED 20,000 / 30 = AED 666.67 (approximately).
Gratuity for first 5 years = 5 years * 21 days/year * AED 666.67/day = AED 70,000.35 (approximately).
Gratuity for subsequent years (12 – 5 = 7 years) = 7 years * 30 days/year * AED 666.67/day.
Gratuity for subsequent years = AED 140,000.70 (approximately).
Total Gratuity = AED 70,000.35 + AED 140,000.70 = AED 210,001.05 (approximately).
Two Years’ Salary = 2 * AED 20,000 * 12 = AED 480,000, which is more than the total gratuity.
Learn more about End of Service UAE.
Legal Services Related to DIFC Gratuity Calculations
For employees and employers within the DIFC, our law firm offers specialized legal services to ensure accurate gratuity calculations, in compliance with the DIFC regulations.
Here’s how we can assist you:
Gratuity Calculation and Legal Advice
We help both employees and employers understand the correct contribution rates under the DIFC system, including DEWS, and ensure compliance with the law.
Handling Gratuity Disputes
In case of disputes regarding gratuity payments, we offer legal representation and advice to resolve matters efficiently.
Our team is well-versed in DIFC employment laws and can guide clients through mediation or legal proceedings.
Guidance on Past Service Gratuity Transfer
For employees who worked before the introduction of the DEWS plan, we provide legal counsel on the transfer of past service gratuity into the new DEWS system.
We ensure that the transfer process complies with DIFC regulations and maximizes benefits for employees.
Legal Support for Exempted Employees
For UAE or GCC nationals enrolled in the GPSSA, our firm provides advice on top-up payments if the employer’s GPSSA contributions exceed the statutory minimum.
We help ensure that employees receive their fair share of gratuity benefits.
Find more services from the best lawyers and law firms in DIFC.
FAQs about DIFC Gratuity Calculation
Understanding the DIFC gratuity calculator is essential for both employees and employers within the DIFC zone.
While general gratuity calculators can offer a basic calculation, they do not account for the unique DIFC provisions, such as the DEWS plan.
For legal assistance, consulting with our law firm is highly recommended.
Our experts guide you through the complexities of DIFC gratuity regulations to ensure that your rights are protected.
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A law graduate and legal writer focusing on UAE law, he became known for his ability to clarify complex legal concepts through his writings. His work simplifies the intricacies of the legal landscape in the Emirates, helping both locals and expatriates navigate their legal concerns.
