DMCC Gratuity Calculator 2026: Free Zone End of Service
DMCC employees accrue end of service gratuity at the same 21 and 30 day rates as mainland UAE. What changes is the administrative route. DMCC handles employment disputes through the free zone authority rather than through MOHRE.
How does DMCC calculate end of service gratuity?
DMCC applies 21 days of basic salary per year for the first five years, then 30 days per year. The total caps at two years of basic salary. DMCC uses your last basic salary, excluding housing, transport and other allowances.
A DMCC employee on AED 12,000 basic with 6 years of service accrues AED 54,000. The first five years produce AED 42,000. The sixth year adds AED 12,000.
Does DMCC follow UAE federal labour law?
DMCC operates its own employment rules that mirror the federal end of service formula. Dubai Multi Commodities Centre licenses more than 25,000 companies. DMCC employees hold DMCC visas rather than MOHRE labour cards, which changes where they file complaints.
The practical difference sits in the administrative route, not the rates. A DMCC employee and a mainland employee on identical salaries and identical service periods receive identical gratuity figures.
Where do DMCC employees file an employment dispute?
DMCC employees file with the DMCC authority, not with MOHRE. MOHRE handles mainland complaints only. Filing in the wrong place costs weeks. Unresolved DMCC disputes progress to the Dubai Courts.
- Request a written settlement breakdown from your employer first
- File with DMCC if the employer does not settle within 14 days of your last working day
- Keep your DMCC employment contract, visa and final payslip
- Escalate to Dubai Courts where DMCC conciliation fails
What salary does DMCC gratuity use?
DMCC gratuity uses basic salary alone. Allowances sit outside the calculation. In typical UAE packages basic salary represents 50 to 60 percent of the total, so the distinction changes the payout more than any other factor.
Article 51 defines basic salary for every employer in the UAE, free zone or mainland. The UAE Labour Law gratuity guide explains the wording.
| Package component | Monthly | Counts toward gratuity |
|---|---|---|
| Basic salary | AED 12,000 | Yes |
| Housing allowance | AED 5,000 | No |
| Transport allowance | AED 2,000 | No |
| Total package | AED 19,000 | Gratuity uses AED 12,000 |
How does DMCC compare to JAFZA and DIFC?
DMCC and JAFZA both follow the 21 and 30 day formula. DIFC does not. DIFC replaced end of service gratuity with DEWS, a funded savings plan. DIFC employers contribute monthly rather than paying a lump sum at the end.
| Zone | Gratuity basis | Disputes go to |
|---|---|---|
| DMCC | 21 and 30 days on basic salary | DMCC authority |
| JAFZA | 21 and 30 days on basic salary | JAFZA Labour Committee |
| DIFC | DEWS monthly contributions | DIFC Courts |
| Mainland | 21 and 30 days on basic salary | MOHRE |
The JAFZA calculator and rules cover the Jebel Ali route in full.
Frequently asked questions
Does DMCC pay gratuity after one year?
DMCC pays gratuity from one year of continuous service. Employees below one year receive unpaid salary and accrued annual leave only.
Does resignation reduce DMCC gratuity?
Resignation and termination produce the same gratuity figure. The reduction that applied to unlimited contracts before February 2022 no longer exists.
When does a DMCC employer pay the settlement?
DMCC employers settle within 14 days of the contract ending, matching the federal deadline.
Does unpaid leave reduce DMCC gratuity?
Unpaid absence comes out of the service period before the calculation runs. Thirty days of unpaid leave removes one month of accrual.
Can a DMCC employer deduct from gratuity?
DMCC employers deduct documented loans and advances agreed in writing. Undocumented deductions carry no basis.
DMCC gratuity forms part of a larger settlement. The end of service settlement calculator totals every component.
