Where you work in the UAE decides how your end of service pay is built – and the two big financial free zones do it very differently from the mainland. If you are comparing DIFC DEWS and ADGM gratuity against the standard system, the headline is this: DIFC has replaced gratuity with a monthly savings plan, ADGM still pays traditional gratuity, and the mainland uses the familiar 21/30-day formula. This guide breaks down all three so you know which one governs your money. For DIFC employees, start with the DIFC DEWS Calculator.
Mainland: the standard gratuity formula
Most UAE employees sit under MOHRE and the federal labour law. The end of service gratuity is 21 days of basic pay for each of the first five years and 30 days a year after that, capped at two years’ basic pay, paid as a lump sum when you leave. Our guide on how gratuity is calculated in the UAE covers this in full, and the UAE Gratuity Calculator gives you the figure.
DIFC: DEWS replaced gratuity
The Dubai International Financial Centre scrapped the traditional lump sum in 2020 and replaced it with the DIFC Employee Workplace Savings plan (DEWS). Instead of your gratuity sitting as an unfunded promise you only see when you leave, your employer pays a monthly contribution into a ring-fenced, invested account that belongs to you. The contribution rates are set to mirror the old formula:
- 5.83% of your monthly basic salary for the first five years of service
- 8.33% of your monthly basic salary from year six onward
The big advantages are that the money is funded monthly, invested so it can grow, and portable – it is yours even if you change jobs. Employers must submit contributions by the 21st of each month. Because it accrues monthly rather than as a single end-of-service sum, DIFC employees should track the DEWS balance rather than expect a traditional lump-sum gratuity.
ADGM: still traditional gratuity
The Abu Dhabi Global Market runs its own employment regulations, separate from federal law – but unlike DIFC, it has not moved to a mandatory savings scheme. As of early 2026, ADGM employers still follow the traditional end of service gratuity model, broadly mirroring the 21 days for the first five years and 30 days after. An ADGM-specific workplace savings framework has been signalled but is not yet the required standard. ADGM employees can estimate their benefit with the ADGM End of Service Calculator.
The three side by side
| Where you work | End of service model | Rate | How you receive it |
|---|---|---|---|
| Mainland (MOHRE) | Statutory gratuity | 21 days/yr first 5 years, 30 days after, capped at 2 years | Lump sum at the end |
| DIFC | DEWS savings plan | 5.83% of basic per month first 5 years, then 8.33% | Monthly into your invested account |
| ADGM | Traditional gratuity | Broadly 21 days/yr first 5 years, 30 days after | Lump sum at the end |
Which one applies to you?
It comes down to your employer’s registration, not where you live. If your company is licensed in the DIFC, you are on DEWS. If it is licensed in ADGM, you are on traditional ADGM gratuity. Everyone else – the vast majority of UAE employees – falls under MOHRE and the federal formula. All three run on your basic salary, so it is worth understanding the basic vs gross salary split whichever regime you are in.
What is DEWS in the DIFC?
What are the DEWS contribution rates?
Does ADGM use DEWS?
Is DIFC DEWS better than a normal gratuity?
How do I know which system applies to me?
Do DIFC and ADGM gratuity use basic or total salary?
Last verified: 19 July 2026. This guide is for information only and is not legal or financial advice. Rules for free zones can change – confirm current rates with your employer or the relevant authority. For mainland disputes, contact MOHRE on 600 590000.
Sources: DIFC – Employee Workplace Savings (DEWS) · Abu Dhabi Global Market (ADGM) · Federal Decree-Law No. 33 of 2021, Article 51.