Home
Back
JAFZA End of Service Gratuity Formula:
| From: | To: |
JAFZA (Jebel Ali Free Zone Authority) end of service gratuity is a financial benefit provided to employees upon termination of their employment contract. It is calculated based on the employee's basic salary and years of service according to JAFZA labor regulations.
The calculator uses the JAFZA gratuity formula:
Where:
Explanation: The formula converts the monthly basic salary to a daily rate (21 working days out of 30) and multiplies by the number of years served to determine the total gratuity amount.
Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with JAFZA labor laws and proper financial planning for employment termination.
Tips: Enter basic monthly salary in AED and total years of service. All values must be valid (salary > 0, years > 0). The calculator will compute the total gratuity amount payable.
Q1: What is included in basic salary for gratuity calculation?
A: Only the basic salary component is used for gratuity calculation. Allowances, bonuses, and other benefits are excluded from the calculation.
Q2: How are partial years calculated?
A: Partial years of service are calculated proportionally. For example, 2.5 years would be calculated as 2.5 in the formula.
Q3: Is there a maximum limit for gratuity?
A: Under JAFZA regulations, gratuity is typically capped at a maximum of 2 years' basic salary for unlimited contracts.
Q4: When is gratuity payable?
A: Gratuity is payable upon termination of employment, regardless of whether the termination is by employer or employee, subject to certain conditions.
Q5: Are there different calculations for limited vs unlimited contracts?
A: Yes, the calculation method may vary depending on the type of employment contract and the circumstances of termination.