UAE Final Settlement Calculator

Final settlement is more than just gratuity. Understand every component of your UAE end-of-employment settlement before you leave.

Important distinction: Gratuity and final settlement are not the same thing. Final settlement is the total amount due when employment ends — gratuity is one component of it. This page explains all components. Use our gratuity calculatorto estimate the gratuity portion.

What Is Final Settlement in the UAE?

Final settlement (also called "full and final settlement") is the total payment an employee receives when their UAE employment ends. It encompasses all outstanding financial obligations the employer has to the employee at the time of departure. Under Federal Decree-Law No. 33 of 2021, employers are legally required to settle all dues within the prescribed timeframe after the end of employment.

Failing to pay the full final settlement on time is a violation of UAE Labour Law and can be reported to MOHRE.

Components of UAE Final Settlement

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1. End-of-Service Gratuity (EOSB)

The statutory gratuity calculated at 21 days/year for the first 5 years and 30 days/year beyond 5 years. Requires minimum 1 year of service.Calculate gratuity →

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2. Unpaid Salary

Any salary earned but not yet paid at the time of leaving. For example, if you leave mid-month, you are owed the proportional salary for the days worked in that final month.

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3. Accrued Annual Leave

Any annual leave days you have earned but not taken must be encashed at your daily wage rate. The standard UAE annual leave entitlement is 30 calendar days per year (after 1 year of service).

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4. Notice Period Pay

If the employer terminates without notice or without the employee serving the notice period, a payment in lieu of notice may be owed. If the employee leaves without serving notice, the employer may deduct the notice period equivalent.

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5. Lawful Deductions

The employer may legally deduct amounts such as outstanding salary advances, authorised loans, or damages caused by the employee, as permitted by law and the employment contract.

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6. Other Contractual Benefits

Any other entitlements under the employment contract — such as repatriation air ticket (if contractually provided), pro-rated bonus, or other benefits specified in the contract.

Worked Final Settlement Example

📋 Final Settlement Example — 4 Years Service, AED 10,000 Basic Salary

Basic salary = AED 10,000 / month Service = 4 years (1,460 days eligible) Annual leave balance = 12 days untaken Notice period = 1 month (to be served / paid in lieu) Component 1 — Gratuity: Daily wage = 10,000 ÷ 30 = AED 333.33 Gratuity = 333.33 × 21 × 4 = AED 28,000.00 Component 2 — Unpaid salary (15 days worked in final month): = (10,000 ÷ 30) × 15 = AED 5,000.00 Component 3 — Accrued annual leave (12 days): = (10,000 ÷ 30) × 12 = AED 4,000.00 Component 4 — Notice period (if paid in lieu): = AED 10,000.00 Gross settlement = AED 47,000.00 Less deductions = AED 0 (assumed none) NET SETTLEMENT = AED 47,000.00

Estimated Net Settlement: ≈ AED 47,000

Illustrative only. Actual amounts depend on your specific contract, leave balance, notice arrangements, and applicable rules. Not legal advice.

Annual Leave Encashment Formula

Annual Leave Encashment

Daily wage = Monthly basic salary ÷ 30 Leave pay = Daily wage × number of untaken leave days Example: AED 10,000 salary, 15 days untaken leave = (10,000 ÷ 30) × 15 = AED 5,000

How Long Does the Employer Have to Pay?

UAE Labour Law requires employers to settle all final entitlements within the legally prescribed period after employment ends. The exact timeframe is specified in the law and implementing resolutions. Delayed payment without legal justification is a violation reportable to MOHRE.

Checklist: Before You Leave

✅ Request a formal final settlement statement in writing from HR
✅ Confirm your exact last basic salary
✅ Check your annual leave balance
✅ Confirm your notice period obligations
✅ Ask for confirmation of any outstanding loans or deductions
✅ Use our gratuity calculator to verify the gratuity component
✅ Keep a copy of all correspondence
✅ If amounts are disputed, contact MOHRE

What If Your Employer Underpays?

If your employer pays less than your full entitlement, you have the right to file a labour complaint with MOHRE. Contact MOHRE at:

Website: mohre.gov.ae
Helpline: 800 60
MOHRE app or nearest service centre

MOHRE will attempt to resolve the dispute through conciliation. If conciliation fails, the case is referred to the Labour Court. Consult a UAE employment lawyer for complex situations.

Gratuity vs End-of-Service Savings Scheme

If you are enrolled in the UAE's optional End-of-Service Savings Scheme, your EOSB is paid from the investment fund managed by the scheme provider — not directly by your employer at the end of service. Other final settlement components (unpaid salary, leave, notice) still apply as normal. Check with your employer which scheme applies to you.

Calculate Your Gratuity Component →

⚠ Disclaimer: This calculator provides an estimate only, based on the general UAE private-sector framework under Federal Decree-Law No. 33 of 2021. It does not constitute legal advice. Individual entitlements may differ based on employment contract, applicable free-zone rules, special work models, unpaid absences, and other factors. Always verify your specific entitlement with your employer, MOHRE, or a qualified UAE employment lawyer.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.

Official Sources

GovUAE Government Portal — u.ae MOHREMinistry of Human Resources — mohre.gov.ae

LawFederal Decree-Law No. 33 of 2021 — Article 51

Last reviewed: 2025-01-15 • Rule version: 2021-DL33 • Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.