Is the gratuity calculation different in free zones like DIFC?
Yes, some free zones have different regulations. For example, the Dubai International Financial Centre (DIFC) uses the 'DIFC Employee Workplace Savings' (DEWS) plan, where employers make monthly contributions to a savings plan instead of a lump-sum gratuity payment at the end of service.
Free zones in the UAE may have different end-of-service benefit structures:
DIFC Employee Workplace Savings (DEWS)
- Monthly contributions instead of lump-sum gratuity
- Employee and employer contributions
- Portable benefits when changing jobs within DIFC
- Investment growth potential
Other Free Zone Variations
- ADGM: Similar to DIFC with workplace savings
- JAFZA: Generally follows UAE mainland rules
- DMCC: Standard UAE labor law applies
- Various others: Check specific free zone regulations
Key Differences
- Contribution-based vs. lump-sum systems
- Portability between employers
- Investment components and growth
- Different vesting schedules
Employee Considerations
- Understand your specific free zone rules
- Compare benefits when job hunting
- Consider portability of benefits
- Review investment options in savings plans
Employer Obligations
- Clearly communicate benefit structure
- Make timely contributions
- Provide regular statements
- Comply with free zone regulations
