Home
Back
JAFZA Gratuity Formula:
| From: | To: |
JAFZA (Jebel Ali Free Zone Authority) end-of-service gratuity is a financial benefit paid to employees upon termination of employment in Dubai's Jebel Ali Free Zone. It is calculated based on the employee's basic salary and years of service.
The calculator uses the JAFZA gratuity formula:
Where:
Explanation: The formula calculates the end-of-service benefit by converting the monthly salary to a daily rate using the 21/30 factor and multiplying by the total years of service.
Details: Accurate gratuity calculation is essential for both employers and employees to ensure fair compensation upon employment termination. It helps in financial planning and ensures compliance with JAFZA labor regulations.
Tips: Enter basic monthly salary in AED and total years of service. All values must be valid (salary > 0, years of service > 0). The calculator provides the total gratuity amount in AED.
Q1: What is the 21/30 factor in the formula?
A: The 21/30 factor represents the conversion from monthly salary to daily wage, assuming 21 working days per month out of 30 calendar days.
Q2: Does this calculation include allowances?
A: No, the JAFZA gratuity calculation is based only on the basic salary. Housing, transportation, and other allowances are not included.
Q3: Are there different calculation methods for different service periods?
A: Yes, for service less than 1 year, no gratuity is payable. For 1-5 years, 21 days per year. For more than 5 years, 30 days per year for additional service.
Q4: What if employment is terminated during probation?
A: No end-of-service gratuity is payable if employment is terminated during the probation period.
Q5: Is this calculation applicable to all JAFZA employees?
A: This calculation applies to employees working under JAFZA regulations. Different free zones in Dubai may have slightly different calculation methods.