A UAE final settlement is the total payment an employer must make when employment ends. It combines multiple components — each calculated on a different salary basis under Federal Decree-Law No. 33 of 2021.
Final Settlement Components
1. Gratuity: (Basic ÷ 30) × 21/30 days × years [basic only] 2. Leave encashment: (Basic ÷ 30) × unused days [basic only] 3. Notice pay in lieu: (Package ÷ 30) × notice days [full package] 4. Outstanding salary: (Package ÷ 30) × unpaid days [full package] 5. Less deductions: Loans, advances, unserved notice
Payment deadline: Employers must pay the complete final settlement within 14 days of the last working day. Late payment may result in MoHRE penalties.
Federal Decree-Law No. 33 of 2021
UAE Final Settlement Calculator 2025
Calculate your complete UAE final settlement — gratuity, unused annual leave, notice period pay, and any outstanding salary — all in one calculation. Based on Federal Decree-Law No. 33 of 2021 and UAE Labour Law 2025. No competitor offers a combined final settlement calculator.
Employment Details
Basic salary only — exclude allowances
Basic + housing + transport allowances
Leave & Outstanding Payments
Calendar days not yet taken
Days worked but not yet paid
Deductions
Total Final Settlement
AED 0
Gratuity
AED 0
End of service benefit
Leave Encashment
AED 0
Unused annual leave days
Notice Pay
AED 0
Unserved notice period
Component
Amount (AED)
Notes
Need help with final settlements or HR compliance? RFS HR Consultancy can assist.
A UAE final settlement includes: end of service gratuity (if 1+ year service), unused annual leave encashment, notice period pay in lieu (if applicable), outstanding salary for days worked but unpaid, and any other contractual entitlements. Deductions include outstanding loans or salary advances.
How long does an employer have to pay final settlement in UAE?
Employers must pay the complete final settlement within 14 days of the employee’s last working day under UAE Labour Law. Failure to pay may result in MoHRE complaints, penalties, and additional compensation obligations.
Is UAE final settlement calculated on basic or total salary?
Different components use different bases. Gratuity and leave encashment on termination: basic salary only. Notice pay in lieu and outstanding salary: full package (basic + fixed allowances). This is often misapplied by employers.
Do I get gratuity if I resign before 1 year in UAE?
No. Employees who leave before 1 year of service are not entitled to gratuity. However, all other components — unused leave, outstanding salary, notice pay — remain payable regardless of service duration.
Can an employer withhold gratuity in UAE?
Only in very limited circumstances — specifically termination for serious misconduct under Article 44. In all other cases, employers are legally obligated to pay full gratuity on resignation or termination.
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