UAE Final Settlement Calculator 2026
Estimate your UAE employment final settlement, including gratuity, unpaid salary, unused annual leave and other applicable payments.
Settlement Parameters
Complete Employment Severance EngineItemized Settlement Breakdown
| Settlement Item | Estimated Amount |
|---|---|
| End-of-Service Gratuity (Article 51) | AED 55,000.00 |
| Unpaid Earned Salary | AED 0.00 |
| Unused Annual Leave Encashment (Article 29) | AED 5,000.00 |
| Other Contractual Amounts | AED 0.00 |
| Less: Company Deductions / Loans | − AED 0.00 |
| Total Net Settlement Payable | AED 60,000.00 |
What Is a Final Settlement in the UAE?
A final settlement (also known as end-of-service clearance) is the complete financial reconciliation an employee is entitled to receive upon separation from an employer in the United Arab Emirates.
Depending on individual contract terms, it encompasses:
- End-of-service gratuity (under Article 51 of UAE Labour Law)
- Unpaid salary for active working days in the final pay cycle
- Compensation for eligible accrued unused annual leave (Article 29)
- Notice period compensation in lieu of notice where applicable (Article 43)
- Other contractual allowances or commission payments
- Less: Lawful company deductions, outstanding advances, or equipment clearances
Gratuity is only one component of your final settlement. While gratuity is strictly calculated on basic salary, the final settlement accounts for all earned wages and contractual entitlements.
How UAE Final Settlement Is Calculated
FormulaThe statutory settlement formula is structured as follows:
Note: The exact components depend on your contract type and applicable UAE employment rules.
Final Settlement Questions & Answers
Common questions regarding UAE final pay settlements, leave pay, and deductions
What is included in a UAE final settlement?
Depending on the circumstances, a final settlement can include end-of-service gratuity (under Article 51), unpaid earned salary, compensation for eligible unused annual leave (under Article 29), notice-related amounts where applicable, and other contractual payments, minus legitimate authorized deductions or company loan repayments.
Is final settlement the same as gratuity?
No. Gratuity is only one component of the total final settlement. A final settlement encompasses all outstanding financial entitlements owed to an employee at separation, including unpaid days worked, leave encashment, and expense reimbursements.
How is gratuity calculated in the final settlement?
For eligible foreign workers under the federal private-sector framework (Federal Decree-Law No. 33 of 2021), gratuity is calculated using the basic wage: 21 days' basic wage per year for the first five years and 30 days' basic wage per year for additional service, capped at 2 years' basic wage.
Is unused annual leave included?
Yes. Eligible accrued unused annual leave forms part of the final settlement under Article 29 of the UAE Labour Law, calculated using the employee's basic monthly wage divided by 30 multiplied by unused leave days.
Is final settlement calculated on basic salary?
Different settlement components use different calculation bases. End-of-service gratuity and leave encashment are calculated strictly on your basic monthly wage. Unpaid salary and notice pay are calculated using your total gross remuneration package.
Does resignation affect final settlement?
It can affect the circumstances and components of the settlement. Under current UAE Labour Law, resignation no longer carries arbitrary 1/3 or 2/3 gratuity deductions for completed contracts, but contractual notice periods and company clearance procedures must be respected.
Does termination affect final settlement?
Yes. In cases of standard employer termination with notice, the employee receives full gratuity, notice pay (if not worked), leave encashment, and unpaid wages. Summary dismissal under Article 44 for gross misconduct may lead to immediate termination without notice pay.
Does this calculator work for DIFC employees?
Not necessarily. The Dubai International Financial Centre (DIFC) operates under its own statutory employment framework with the DIFC DEWS Workplace Savings Scheme rather than mainland federal lump-sum gratuity rules.
Is this an official UAE government calculator?
No. It is an independent estimation tool designed according to UAE Labour Law (Federal Decree-Law No. 33 of 2021) and should not be represented as an official government service. For binding calculations, consult MOHRE or legal counsel.