Jafza Gratuity Calculator UAE (End of Service Calculation)

Jafza End of service gratuity is a great benefit for Jafza employees. This is a lump sum payment given to the employee when their employment ends, as a reward for their loyalty and years of service with the company.

The Jafza Gratuity Calculator below helps employers and employees to calculate the gratuity amount as per Jafza rules which is different from UAE Labor Law in some aspects.

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How to Use the Jafza Gratuity Calculator

Our calculator makes it simple to estimate your end of service benefits:

1. Enter Employee Information:
   • Employee Name: Enter the full name of the employee
   • Contract Type: Select whether the employee is on a limited or unlimited contract
   • Joining Date: The date when employment began
   • Leaving Date: The expected or actual last working day
   • Basic Monthly Salary: Enter the basic salary amount in AED (excluding allowances)
   • Reason for Leaving: Select whether the employee is resigning or being terminated
2. Calculate and Review:
   • Click the “Calculate Gratuity” button
   • Review the detailed breakdown of the calculation
   • Check the final gratuity amount, which is subject to Jafza’s final approval

Jafza Gratuity Calculations Explained

Jafza gratuity calculations follow these general principles:

For Unlimited Contracts:

If the employee resigns (after at least 1 year of service):

• First 5 Years: 21 days of basic salary for each year
• After 5 Years: 30 days of basic salary for each additional year
• Maximum gratuity is capped at two years’ salary

If the employer terminates the contract:

• Similar calculation as above, but may have different provisions based on termination circumstances

For Limited Contracts:

• Gratuity is calculated based on the completed service period
• Similar calculation method as unlimited contracts based on length of service

Example Calculation

Let’s consider an example:

Employee Details:

• Basic Monthly Salary: AED 10,000
• Contract Type: Unlimited
• Service Period: 7 years, 3 months
• Reason for Leaving: Resignation with proper notice

Calculation:

1. Daily Salary: AED 10,000 ÷ 30 = AED 333.33
2. First 5 Years: AED 333.33 × 21 days × 5 years = AED 34,999.65
3. Remaining Period (2 years, 3 months):
   • AED 333.33 × 30 days × 2.25 years = AED 22,499.78
4. Total Gratuity: AED 34,999.65 + AED 22,499.78 = AED 57,499.43

Verification: This amount is less than the maximum cap of two years’ salary (AED 240,000), so the calculated amount is valid.

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Important Notes About Jafza Gratuity

1. Maximum Cap: Gratuity is capped at two years’ basic salary.
2. Service Period: Employees must complete at least one year of continuous service to be eligible.
3. Calculation Base: Gratuity is calculated on basic salary only, not including allowances or other benefits.
4. Pro-Rata Calculation: Partial years are calculated on a pro-rata basis (days and months are converted to fractional years).
5. Notice Period: Proper notice must be served as per the employment contract for full gratuity entitlement.
6. Final Approval: The calculator provides an estimate; final calculation is subject to Jafza’s Labor Affairs Section approval.
7. Documentation: Both employers and employees should maintain proper documentation of employment dates and salary details.

Legal Disclaimer

This calculator is provided for informational purposes only. While we strive for accuracy, the final gratuity calculation will be determined by Jafza authorities based on their regulations and policies. Employers and employees should consult with Jafza’s Labor Affairs Section or a legal professional for official guidance on gratuity matters.

Frequently Asked Questions

Q: Who is eligible for gratuity payment in Jafza?
A: Employees who have completed at least one year of continuous service are eligible for gratuity payment.

Q: Is gratuity calculated on total salary or basic salary?
A: Gratuity is calculated based on the basic salary only, excluding allowances and other benefits.

Q: What happens if I resign before completing one year?
A: Employees who resign before completing one year of service are generally not entitled to gratuity.

Q: How does annual leave affect my gratuity calculation?
A: Unused annual leave days are typically calculated separately and added to the final settlement.

Q: Are there any circumstances where an employee might lose the right to gratuity?
A: Yes, in certain cases of termination for gross misconduct, an employee might forfeit their right to gratuity as per Jafza regulations.