UAE Final Settlement Calculator
Gratuity, unused leave, notice pay, outstanding salary and deductions — the complete end-of-employment figure, under Federal Decree-Law No. 33 of 2021.
Your details
Breakdown
| Component | Basis | Amount (AED) |
|---|---|---|
| Net settlement | 0.00 |
The three salary bases
A UAE final settlement is not one calculation. It is four or five separate ones, and they do not all use the same salary figure. Getting this wrong in either direction is the most common reason settlements end up at MOHRE.
| Component | Salary basis | Authority |
|---|---|---|
| End-of-service gratuity | Basic salary only | Article 51 |
| Unused leave encashment | Basic salary only | Article 29(9) |
| Pay in lieu of notice | Full package | Article 43 |
| Outstanding salary | Full package | Contractual |
The practical effect is large. On a package of AED 15,000 made up of AED 10,000 basic plus AED 5,000 in allowances, twenty unused leave days are worth AED 6,667 — not AED 10,000. Employees frequently expect the higher figure, and employers frequently apply the basic-only rule to notice pay where it does not belong.
How gratuity is calculated
Twenty-one days of basic salary for each of the first five years of service, then thirty days of basic salary for each year beyond five. The total is capped at two years of basic salary regardless of length of service. Under Federal Decree-Law No. 33 of 2021 there is no longer any reduction for resigning rather than being terminated — that rule was abolished in February 2022, though outdated calculators still apply it.
Less than one year of continuous service means no gratuity entitlement. Partial years beyond the first are counted proportionally.
Annual leave accrual
Thirty calendar days per year after one year of service, and two days per month between six and twelve months. Below six months, no annual leave encashment is due — though those months still count toward continuous service for gratuity purposes. Up to half your annual entitlement may be carried forward with the employer's agreement.
When it must be paid
Within fourteen days of your last working day, covering the whole settlement rather than gratuity alone. From 1 June 2026, private-sector salary payments — including final settlements — are required to flow through the Wages Protection System, so a settlement paid in cash or outside WPS may create a compliance issue on top of any underlying dispute. Employers can check their position with the WPS Compliance Checker.
If you only need the gratuity portion, the Gratuity Calculator covers that on its own with a downloadable breakdown. For the wider employment cost picture, see the Employee Cost Calculator and the Labour Law Calculator.
This is an estimate for general guidance, not an official settlement figure. Your contract, jurisdiction and any company policy may change the outcome. DIFC and ADGM operate under separate employment legislation.
Common questions
What is included in a UAE final settlement?
End-of-service gratuity if you have completed at least one year, encashment of any unused annual leave, pay in lieu of notice where notice was not served, outstanding salary for days already worked, and any other contractual entitlement such as a repatriation ticket. Outstanding loans, salary advances and unreturned company property are deducted.
Why do different parts of the settlement use different salary figures?
Because the law specifies different bases. Gratuity under Article 51 and leave encashment under Article 29(9) are both calculated on basic salary only, excluding housing, transport and other allowances. Notice pay and outstanding salary are calculated on your full package including allowances. Applying one figure to everything is the most common settlement error.
How long does my employer have to pay my final settlement?
Fourteen days from your last working day. This covers the whole settlement, not just gratuity. If the deadline passes without payment you can file a complaint with MOHRE.
Do I lose my leave encashment if I resign rather than being terminated?
No. Accrued unused annual leave is payable in both cases, calculated on basic salary. Leave that has already accrued is not forfeited by resigning, and the same applies to gratuity under the 2021 law.
What happens if I leave without serving my notice period?
You may owe your employer compensation in lieu, equivalent to your full-package wage for the unserved portion. This calculator treats that as a deduction from your settlement. If your employer terminates you without notice, the same amount is payable to you instead.
How much annual leave do I accrue?
Thirty calendar days per year once you have completed one year of service, and two days per month between six and twelve months. Below six months of service no annual leave encashment is due, though those months still count toward your continuous service for gratuity.
Does this apply to DIFC and ADGM employees?
No. Federal Decree-Law No. 33 of 2021 covers mainland UAE and most free zones, but DIFC and ADGM have their own separate employment legislation with different rules on leave and end-of-service benefits. Check your own jurisdiction rules if you work in either.
Is gratuity calculated the same way for UAE nationals?
No. UAE nationals are covered by the GPSSA pension system rather than the Article 51 gratuity formula that applies to expatriate private-sector employees, so the gratuity figure here will not be meaningful for a UAE national.