UAE final settlement calculator
A UAE final settlement is end-of-service gratuity (21 days' basic salary a year for the first 5 years, 30 days after) plus unused annual leave paid on basic salary, any unpaid salary, pay in lieu of notice if the notice is not worked, and other contractual dues. The employer must pay it within 14 days of the employment ending.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
Only if the notice period is not worked.
- End-of-service gratuity
- AED 40,863.01
- Unused leave (basic wage)
- AED 4,000.00
- Unpaid salary
- AED 16,000.00
- Final settlement
- AED 60,863.01
The employer must pay all dues within 14 days of the end of employment. Deduct any loans or advances owed to the employer.
Results are estimates for general information, not tailored advice.
Final settlement examples
Basic AED 10,000, total AED 16,000; 12 leave days and one month's salary outstanding.
| Service | End-of-service gratuity | Final settlement |
|---|---|---|
| 1.5 years | AED 11,104.11 | AED 31,104.11 |
| 5 years | AED 35,000.00 | AED 55,000.00 |
| 10 years | AED 85,000.00 | AED 105,000.00 |
Gratuity and leave are on basic salary; unpaid salary and notice are on total salary.
What goes into a final settlement
Each element is calculated on a different salary base, which is where most disputes start:
- Gratuity: basic salary, after at least one year of continuous service (gratuity calculator)
- Unused annual leave: basic salary ÷ 30 × days
- Unpaid salary for days worked: full salary
- Notice period not worked: full salary for the notice days
- Other dues: bonuses earned, expense claims and, where applicable, the repatriation ticket
Deductions and timing
An employer can deduct amounts the employee owes, such as loans or salary advances, within legal limits. Payment is due within 14 days of the end of employment, and late payment can lead to a MoHRE complaint. Our payroll team prepares settlement letters that employees can check line by line.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
Frequently asked questions
How long does an employer have to pay the final settlement?
14 days from the end of the employment relationship.
Is unused leave paid on basic or total salary?
On basic salary when it is paid out at the end of employment.
Do I get gratuity if I resign?
Yes. Under the 2021 labour law, resignation no longer reduces gratuity, provided you have at least one year of service.
Payroll and WPS services
We run monthly WPS payroll, track leave and gratuity, and prepare final settlements correctly, so HR questions do not become labour complaints.