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JAFZA Gratuity Formula:
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The JAFZA (Jebel Ali Free Zone Authority) end-of-service gratuity is a financial benefit provided to expatriate employees upon termination of their employment contract. It serves as a reward for years of service and is calculated based on the employee's final salary and duration of employment.
The calculator uses the JAFZA gratuity formula:
Where:
Explanation: The formula calculates gratuity by dividing complete years by 21 and partial months by 30, then summing both components multiplied by the last salary.
Details: Accurate gratuity calculation is essential for both employers and employees to ensure fair compensation upon contract termination, compliance with UAE labor laws, and proper financial planning.
Tips: Enter last monthly salary in AED, complete years of service, and additional months (0-11). All values must be valid (salary > 0, years ≥ 0, partial months between 0-11).
Q1: Who is eligible for JAFZA gratuity?
A: All expatriate employees who have completed at least one year of continuous service are eligible for end-of-service gratuity.
Q2: What is included in "last salary"?
A: Last salary typically includes basic salary and allowances, but excludes bonuses, overtime, and other variable components unless specified in the employment contract.
Q3: How are partial years calculated?
A: Partial years are calculated based on completed months of service beyond full years, with each month calculated as 1/30th of the monthly salary.
Q4: What happens if employment is terminated before one year?
A: Employees who complete less than one year of service are generally not entitled to gratuity under JAFZA regulations.
Q5: Are there different calculations for different service periods?
A: Yes, gratuity calculation may vary based on total years of service, with different rates applicable for service periods under and over 5 years in some cases.