UAE Final Settlement Calculator 2026
Work out your full end-of-service settlement in the UAE: gratuity, unused annual leave, notice pay in lieu, unpaid salary days and any deductions, in one figure.
| Service | — |
|---|---|
| End-of-service gratuity (basic wage) | — |
| Leave encashment | — |
| Unpaid salary (full salary ÷ 30 × days) | — |
| Notice pay in lieu (full salary) | — |
| Less: notice not served | — |
| Less: other deductions | — |
In short
A UAE final settlement is gratuity (21 days' basic wage per year for the first five years, 30 days after, capped at two years' wage, nothing under one year) plus unused annual leave, unpaid salary days and any notice pay in lieu on full salary, less notice not served and outstanding loans — payable within 14 days of the contract ending (Labour Law Arts. 29, 43, 51, 53).
Who this is for: UAE employees leaving a job, and HR teams preparing an end-of-service settlement with gratuity, leave, notice and deductions.
What goes into a UAE final settlement
- End-of-service gratuity (Art. 51): 21 days of basic wage per year for the first five years, 30 days per year after that, pro-rated for part years, nothing under one year, capped at two years' wage. Resignation and termination are treated the same since 2022.
- Leave encashment (Art. 29): unused annual leave paid at the basic wage by default — many contracts and employers use full salary, so the calculator lets you choose.
- Unpaid salary: the days worked in the final month at full salary ÷ 30.
- Notice (Art. 43): 30–90 days as per contract. If the employer waives the notice it owes pay in lieu on full salary; if the employee leaves without serving notice the same amount is deducted.
- Deductions: outstanding loans or advances, and any agreed training-cost clawback.
All dues must be settled within 14 days of the contract end date. The employer must also cancel the work permit and visa and, where the contract provides it, pay for the repatriation ticket.
Assumptions
- Gratuity from the UAE rules file: 21 days' basic per year up to 5 years, 30 days after, pro-rated, cap 2 years' wage, zero under 1 year.
- Leave encashment at basic (default) or full salary ÷ 30; unpaid salary and notice at full salary ÷ 30.
- Notice not served and other deductions are subtracted; repatriation ticket and bonuses are not included.
Worked example
Gratuity = 8,000 ÷ 30 × 21 × 4 = AED 22,400. Leave = 12 × 266.67 = AED 3,200 (basic basis). Unpaid salary = 15 × 400 = AED 6,000.
Net settlement with notice served and no deductions = AED 31,600.
Frequently asked questions
Is gratuity reduced if I resign?
Not any more — the 2021 Labour Law (in force February 2022) removed the resignation reduction that applied to unlimited contracts. Full gratuity is due after one year regardless of who ends the contract.
Can the employer deduct the visa or recruitment cost?
No. Recruitment and visa costs are the employer's by law and cannot be recovered from the employee's settlement.
What if the settlement is not paid within 14 days?
File a complaint with MOHRE (or the free-zone authority); unpaid dues can be pursued through the labour court with no court fees for claims under AED 100,000.
Does the absconding or a labour ban affect the settlement?
Dues are still payable. A labour ban no longer applies to employees who complete their notice period under the current law.
How is gratuity calculated in the UAE?
21 days of basic wage per year of service for the first five years and 30 days per year after that, pro-rated, on the last basic wage, capped at two years' total wage, with nothing due under one year.
When must the final settlement be paid in the UAE?
Within 14 days of the end date of the employment contract, under Article 53.
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