HR and payroll in UAE free zones

Most free zones, including DMCC and Jebel Ali, follow the federal labour law: gratuity of 21 days' basic salary a year for five years, then 30, capped at two years' wage. The DIFC and ADGM have their own laws. The DIFC replaces gratuity with DEWS contributions of 5.83% or 8.33% of basic salary. Checked 31 October 2026.

Employment law, end-of-service and WPS by zone
Where	Employment law	End of service	WPS
Mainland (MOHRE)	Federal Decree-Law No. 33 of 2021	Gratuity: 21 days' basic salary a year for five years, then 30, capped at two years' wage	Required. Salaries due on the first day of the following month since 1 June 2026
DIFC (Dubai)	DIFC Employment Law, DIFC Law No. 2 of 2019	DEWS: employer pays 5.83% of basic salary a month for under five years' service, 8.33% from five years	Follows DIFC's own rules; check with the DIFC
ADGM (Abu Dhabi)	ADGM Employment Regulations 2024, in force 1 April 2025	Gratuity payable whatever the reason employment ends; the employer may offer a pension or savings scheme instead	The UAE WPS does not apply; the ADGM Employment Regulations set how wages are paid
DMCC (Dubai)	Federal labour law	Gratuity: 21 days' basic salary a year for five years, then 30, capped at two years' wage	Required for all DMCC companies
Jebel Ali Free Zone (JAFZA)	Federal labour law	Gratuity: 21 days' basic salary a year for five years, then 30, capped at two years' wage	Required for all Jafza companies

DIFC

The DIFC Employment Law (DIFC Law No. 2 of 2019) applies to companies registered in the Dubai International Financial Centre. Gratuity for current service is replaced by DEWS, a funded savings plan: the employer pays 5.83% of each employee's monthly basic salary for the first five years and 8.33% after that. UAE and GCC nationals are covered by their pension scheme instead. Payroll records must be kept for six years.

ADGM

Abu Dhabi Global Market's Employment Regulations 2024 came into force on 1 April 2025. End-of-service gratuity is payable whatever the reason employment ends, and an employer may offer a pension or savings scheme instead of gratuity. Check the regulations for the exact day rate before calculating an ADGM payout.

DMCC, Jebel Ali and other zones

Outside the two financial free zones, the federal labour law applies, with the same gratuity rule as the mainland: 21 days' basic salary a year for five years, then 30, capped at two years' wage. DMCC and Jebel Ali Free Zone both require their companies to pay salaries through WPS.

Mainland

Mainland companies are licensed by MOHRE and pay salaries through WPS. Since 1 June 2026, salaries are due on the first day of the following month.

Read the UAE payroll guide

Sources · checked 31 October 2026

Use the UAE gratuity calculator

Questions

Frequently asked questions

Short answers on payroll rules in UAE free zones, each with the date we checked it.

Does UAE labour law apply in free zones?

Yes, in most of them. The federal labour law, Federal Decree-Law No. 33 of 2021, covers the mainland and free zones such as DMCC and Jebel Ali. The two financial free zones have their own: the DIFC Employment Law in Dubai and the ADGM Employment Regulations in Abu Dhabi. Checked 31 October 2026.

Is gratuity paid in the DIFC?

Not as a lump sum for current service. DIFC employers pay into DEWS each month instead: 5.83% of basic salary for employees with under five years' service and 8.33% from five years. Checked 31 October 2026.

Do free-zone companies have to use WPS?

Many do. DMCC and Jebel Ali Free Zone both require WPS for all their companies. The UAE WPS does not apply in ADGM, and the DIFC sets its own payroll rules, so check with the zone. Checked 31 October 2026.

Can Peoplo.ai run payroll for mainland, DIFC and ADGM employees together?

Peoplo.ai is designed to support UAE payroll for mainland, DIFC and ADGM entities in one account, including WPS salary files and end-of-service, alongside Indian entities.