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Labour / EmploymentAnswered

Is gratuity different for free zone employees compared to mainland in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A worker employed in a free zone wants to know whether their end-of-service benefit follows mainland rules or something else.

This answer is AI-generated by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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AI-generated answer

Jun 26, 2026
It depends on which free zone you work in. Most UAE free zones apply the federal UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE or the free zone authority, so end-of-service gratuity is calculated the same way as on the mainland: 21 days' basic wage per year for the first five years, 30 days thereafter, on basic salary, with a one-year minimum and a two-year-wage cap. However, two financial free zones — the DIFC in Dubai and the ADGM in Abu Dhabi — have their own separate employment laws. DIFC uses the DEWS savings scheme of monthly employer contributions instead of a lump-sum gratuity, while ADGM applies its own end-of-service rules under its Employment Regulations. So the key question is whether your free zone follows the federal law or operates an independent regime. Check your employment contract and the relevant free-zone authority to confirm which rules apply to you. For a free-zone-specific entitlement or dispute, you can compare verified UAE employment lawyers on LEXAI who handle that jurisdiction.
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