DIFC Gratuity Calculator UAE 2026
A complete breakdown of end-of-service benefits in the Dubai International Financial Centre.
If you are an employee working in the Dubai International Financial Centre, also called DIFC, your end-of-service benefits do not follow the same rules as mainland UAE employees.
Most employees in the UAE receive a lump-sum gratuity at the end of their service, but it is not the same for DIFC employees. Since February 2020, DIFC has replaced the traditional gratuity system with something called DEWS. Instead of a one-off payment at the end, your employer puts money into a savings account for you every single month.
This guide explains how DIFC end-of-service benefits work in 2026, how to calculate what you are owed, how DEWS compares to regular UAE gratuity, and what to do if something goes wrong.
What is DIFC?
DIFC stands for the Dubai International Financial Centre. Located in the centre of Dubai, it is one of the MENA region’s leading business hubs. Many international banks, law firms, insurance companies, and asset management firms operate from DIFC.
DIFC has its own courts, laws, and employment rules, which means it operates as a legally separate jurisdiction within Dubai, following the DIFC Employment Law No. 2 of 2019, updated most recently in 2025.
MOHRE has no authority over DIFC employment disputes. If you have a gratuity or salary problem as a DIFC employee, you go to the DIFC Courts, not MOHRE.
What is DEWS?
DEWS stands for DIFC Employee Workplace Savings. It was introduced on 1 February 2020, replacing the old end-of-service gratuity system inside DIFC. Here is how it works:
- Instead of waiting until the end of service to receive a lump sum, your employer pays a percentage of your basic salary into a personal savings account each month.
- The money is held in your name by an independent trustee called Equiom, and is invested in funds of your choice.
- You can see your balance at any time through the DEWS online portal.
- At the end of your service, you withdraw the full balance, including any investment returns.
- You can also add your own voluntary contributions on top of what your employer pays.
Who qualifies for DEWS in DIFC?
Who is covered
- All expatriate employees working under a DIFC employment contract.
- Enrolled from day one of employment, with no waiting period.
- Both full-time and part-time employees.
- Fixed-term and open-ended contracts are both covered.
Who is not covered
- UAE and GCC nationals (covered by the GPSSA pension scheme instead).
- Employees seconded to DIFC from an employer based outside DIFC.
- Employees of companies not registered as DIFC entities.
How is DEWS calculated?
Your employer pays a fixed percentage of your basic salary into your DEWS account every month. The rate depends on how long you have worked.
| Duration of service | Employer contribution rate | Amount you receive |
|---|---|---|
| Less than 5 years | 5.83% of basic monthly salary | Equivalent to 21 days gratuity per year, paid monthly |
| 5 years or more | 8.33% of basic monthly salary | Equivalent to 30 days gratuity per year, paid monthly |
These rates follow the old UAE gratuity formula, just paid monthly instead of as a lump sum at the end of service.
Worked examples
Example 1: two years of service
Basic salary: AED 20,000 per month. Service: 2 years. Rate: 5.83%.
| Calculation | Amount |
|---|---|
| Monthly DEWS contribution | AED 20,000 × 5.83% = AED 1,166 |
| Total over 24 months | AED 1,166 × 24 = AED 27,984 |
| Plus investment returns | Variable, based on the fund chosen |
| Approximate balance at exit | AED 27,984 plus growth |
Example 2: seven years of service
Basic salary: AED 35,000 per month.
| Period | Rate | Monthly amount | Months | Subtotal |
|---|---|---|---|---|
| Years 1 to 5 | 5.83% | AED 2,040.50 | 60 | AED 122,430 |
| Years 6 and 7 | 8.33% | AED 2,915.50 | 24 | AED 69,972 |
| Total employer contributions | — | — | — | AED 192,402 |
| Plus investment returns | — | — | — | Variable |
The 50% basic wage rule
DIFC law requires your basic wage to be at least 50% of your total monthly compensation. If your employer keeps your basic salary low, the 50% rule kicks in.
| Salary structure | What is used for DEWS |
|---|---|
| Basic AED 8,000 of AED 20,000 total (40%) | 50% rule applies: AED 10,000 used |
| Basic AED 11,000 of AED 20,000 total (55%) | AED 11,000 used (your actual basic) |
| Basic AED 15,000 of AED 20,000 total (75%) | AED 15,000 used (your actual basic) |
What about gratuity earned before February 2020?
DEWS was introduced from 1 February 2020. If you were working in DIFC before this date, you have two separate entitlements:
- Legacy gratuity — for all service before 1 February 2020, using the old formula (21 days per year for the first 5 years, 30 days after, capped at 2 years’ basic salary).
- DEWS contributions — for all service from 1 February 2020 onwards, with no cap.
Gratuity formula for pre-2020 service
For any service before 1 February 2020, the old formula applies.
This legacy amount was capped at 24 months’ basic salary, the same as mainland UAE rules.
| Service period | Old gratuity formula |
|---|---|
| Less than 1 year | No gratuity |
| 1 to 5 years | (Basic salary ÷ 30) × 21 × years |
| More than 5 years | First 5 years at 21 days, then 30 days per additional year |
| Maximum payable | 24 months’ basic salary |
Leave benefits for DIFC employees
Annual leave
- A minimum of 20 working days of paid annual leave per year.
- Builds up from day one of employment.
- Unused annual leave is paid out at the end of employment.
Sick leave
| Sick leave period | Pay level |
|---|---|
| First 10 working days per year | Full pay (100%) |
| Days 11 to 30 | Half pay (50%) |
| Days 31 to 60 | Unpaid |
Maternity and paternity leave
If you have completed 1 year of service, you are eligible for maternity leave. It is granted for 65 working days, of which the first 33 days are fully paid and the next 32 days are paid at half.
Paternity leave is also allowed and can be taken as 5 working days within one month of the birth.
Notice period regulations under DIFC employment law
The notice period rules under DIFC employment law vary by length of service. Employers can place employees on garden leave during the notice period, meaning you are paid but do not need to attend work.
| Length of service | Minimum notice period |
|---|---|
| Less than 3 months (probation) | 7 calendar days |
| 3 months to 5 years | 30 calendar days |
| More than 5 years | 90 calendar days |
What happens when your DIFC employment ends?
At the end of your service, your employer is bound to do all of the following within 14 days of your last working day:
- Pay all outstanding salary and allowances, excluding your annual leave.
- Process your DEWS withdrawal so you can access your savings without any hassle.
- Pay your pre-2020 gratuity, if any, separately.
- Cancel your DIFC work permit and UAE residence visa as soon as possible.
- Provide reasons for termination in writing on request.
- Provide a reference letter on request.
How to access your DEWS savings when you leave?
- Log in to the DEWS portal at www.dews.ae using your registered email address.
- Select your withdrawal option: full withdrawal, partial withdrawal, or transfer.
- Funds are typically transferred within a few business days.
- You can keep your account active after leaving DIFC and continue investing your balance.
Common mistakes DIFC employees make
Mistake 1: Using a mainland UAE gratuity calculator
Most DIFC employees search online and use a standard MOHRE gratuity calculator, which gives the wrong result. Your entitlement is DEWS, not traditional gratuity. The numbers are very similar, but the system is entirely different.
Mistake 2: Not checking DEWS registration
Some employees assume they have been registered in DEWS but never verify. Log in to your DEWS account and confirm your balance, and that monthly contributions have been made from day one.
Mistake 3: Forgetting pre-2020 legacy gratuity
If you worked in DIFC before February 2020, you have a separate entitlement for that period under the old formula. This is on top of your DEWS balance, and many employees never ask for it. Calculate what you are owed.
Mistake 4: Signing a settlement without checking the maths
Before signing any final settlement, check your DEWS portal balance, add any pre-2020 legacy gratuity, add unused leave pay, and make sure the total matches what your employer is offering.
To wrap up
DIFC is one of the most employee-friendly working environments in the MENA region. DEWS is better than traditional gratuity in several important ways: your money is protected from day one, it grows through investment, and there is no cap on how much accumulates over your service period.
Not working in DIFC? If you are on the UAE mainland or in another free zone, use our UAE Gratuity Calculator to find out exactly what you are owed under the standard MOHRE rules.
Frequently asked questions
Is DEWS the same as gratuity?
Not exactly. DEWS replaces traditional gratuity inside DIFC. The rates mirror the old formula, but your money is paid monthly into a savings account that grows through investment, rather than being held as a lump sum at the end.
What if my employer never enrolled me in DEWS?
This is a compliance violation. Contact the DIFC Authority, who can fine your employer and order them to back-pay all missing contributions. You can also file a claim at the DIFC Courts Small Claims Tribunal.
Can my employer take my DEWS savings away?
No. DEWS funds are held independently by the trustee Equiom and are legally yours. Your employer has no access to them. Even if the company shuts down, your savings are fully protected.
Do I get DEWS if I resign?
Yes. Whether you resign or are terminated, you receive your full DEWS balance. There is no reduction for resignation in DIFC.
Is DEWS taxable?
No. The UAE has no personal income tax, so your DEWS payout is fully tax-free in the UAE. If you move to a country with income tax, you may need to declare it there.
What happens to DEWS if the company goes bankrupt?
Because DEWS funds are held by an independent trustee and are completely separate from your employer’s assets, company insolvency does not affect your savings. You can still withdraw via the portal.
Does the 2-year cap apply to DEWS?
No. There is no cap on DEWS. Your employer contributes 5.83% or 8.33% of your salary every single month with no upper limit. This is one of the biggest advantages over the old system.
I work in DIFC but my company is not a DIFC entity. Which rules apply?
If your employer is not a DIFC-registered entity, you are likely under UAE Federal Labour Law. Check your contract — it should clearly state whether DIFC or UAE federal law governs your employment.
Get new guides in your inbox
Occasional updates on UAE gratuity rules, settlement tips, and new calculator features. No spam — placeholder copy you can edit.
Prefer to run the numbers now? Open the calculator →