UAE Final Settlement Calculator 2026: Gratuity, Leave Pay & Notice Pay
When you leave a job in the UAE, the money you receive on your last day is not just gratuity. It is a bundle of payments, and many employees only find out what is missing after they have already signed the clearance papers. This guide explains every part of the UAE final settlement in plain language, and the free calculator below gives you a quick estimate in under a minute.
UAE Final Settlement Calculator 2026
What Is a Final Settlement in the UAE?
A final settlement, sometimes called end-of-service dues or full and final settlement, is the total amount your employer owes you when your employment ends. It applies whether you resign, your contract expires, or the employer terminates you. The amount depends on your salary, how long you worked, how many leave days you have left, and whether notice was worked or paid.
The mistake most people make is to look only at gratuity. In reality, gratuity is one line in a longer statement, and each line has its own rule.
What Your Final Settlement Usually Includes
- End-of-service gratuity: a payment for your years of service, based on basic salary.
- Unused annual leave: the leave you earned but did not take.
- Notice period pay: money in place of notice when the notice is not worked and the law or your contract requires it.
- Unpaid salary: the last month, or any months still pending, plus agreed overtime or commission.
- Other contract benefits: items such as a pending ticket allowance, if your contract promises them.
After adding these, lawful deductions are taken out, for example an unpaid loan or a salary advance that you agreed to repay.
How UAE Gratuity Is Calculated
Gratuity is worked out from your last basic salary only. Allowances such as housing and transport are not included. The rule under the current labour law is simple:
- 21 days of basic salary for each of the first five years of service.
- 30 days of basic salary for each year after the fifth year.
- Part of a year is counted in proportion.
- You need at least one year of continuous service to qualify.
- The total cannot be more than two years of basic salary.
The daily wage is your basic salary divided by 30. If you are not sure which salary counts as basic, read UAE gratuity calculated on basic salary or total, or use the dedicated UAE Gratuity Calculator 2026 if you only need the gratuity figure.
Days of unpaid leave are not counted as service, which is why the calculator above asks for them. Also, since the 2021 reform, resigning does not reduce your gratuity the way it used to under the old law. We explain this in detail in does resignation vs termination still affect your gratuity payout.
A Worked Example
Take an employee with a basic salary of AED 6,000, a total salary of AED 9,000, seven years of service, and 10 unused leave days.
- Daily wage: 6,000 / 30 = AED 200.
- First five years: 5 x 21 days x 200 = AED 21,000.
- Remaining two years: 2 x 30 days x 200 = AED 12,000.
- Gratuity total: AED 33,000. The two-year cap is AED 144,000, so it does not apply here.
- Unused leave: 10 x 200 = AED 2,000.
The estimated settlement is AED 35,000, before any unpaid salary or deductions. Notice pay would be added on top only if the employer had to pay it.
Unused Annual Leave Pay
Annual leave you have earned but not used must be paid when you leave. It is calculated on basic salary, using the same daily wage as gratuity. Multiply the unused days by your basic salary divided by 30. Check your leave balance in your HR portal or payslip before you agree to the final figure, because errors here are common, especially when leave was carried over from previous years. For a deeper look at why leave pay and gratuity are two separate payments, read unused annual leave vs gratuity.
Notice Period Pay
The notice period in most UAE contracts is between 30 and 90 days, as written in the contract. If the notice is worked, there is no extra payment because you are paid your normal salary. If the employer ends the contract and does not let you work the notice, you are generally owed pay for that period. For this reason the calculator uses your total monthly salary for notice pay, divided by 30 for each day. If you are unsure which rule applies to you, ask HR to explain it in writing.
Deductions: What Can Be Taken Out
Employers can deduct amounts that you owe and that are allowed by law, such as an unpaid loan or an advance on salary. A deduction should be clear, documented, and agreed. Do not accept a general line such as "company adjustment" without details. Ask for a breakdown, and compare each item with your records. If the deduction is a loan, see whether your employer can deduct a loan or salary advance from your gratuity.
Common Mistakes to Avoid
The most frequent errors are using total salary instead of basic salary for gratuity, forgetting to deduct unpaid leave from service time, and skipping the leave balance check. We list these and more in our post on common gratuity calculation mistakes. Reading it before your last day can save you from an underpaid settlement.
When Should You Be Paid?
The employer must pay all end-of-service dues within 14 days of the end of employment. Keep a copy of your resignation or termination letter, your last payslips, your contract, and any settlement statement. If the payment is late or the amount looks wrong, first raise it with HR in writing. If that does not help, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). Our step-by-step guide to filing a gratuity complaint with MOHRE shows how.
How to Use This Calculator Properly
- Enter your last basic salary and total monthly salary from your payslip.
- Enter your exact years and months of service.
- Add unpaid leave days, unused annual leave days, and any notice days to be paid.
- Enter deductions such as a loan balance.
- Press calculate and compare the result with your employer statement.
If your number is lower than the calculator result, do not panic. Ask HR to show their working line by line. Often the difference is a simple input, such as a wrong joining date or a missing leave balance. Before you sign anything on your last day, go through our UAE Final Settlement Checklist as well.
Frequently Asked Questions
What is included in a UAE final settlement?
It usually includes gratuity, unused leave pay, unpaid salary, notice pay when it applies, and other contract dues. Lawful deductions, such as a loan balance, are subtracted at the end.
How is gratuity calculated in the UAE in 2026?
It uses your last basic salary: 21 days per year for the first five years and 30 days per year after that. The total cannot exceed two years of basic salary, and you need at least one year of continuous service.
Is unused annual leave paid when I leave my job?
Yes. Earned leave that you did not take is paid on your basic salary divided by 30 for each unused day.
When must the employer pay the final settlement?
The employer must pay all end-of-service dues within 14 days of the end of employment. If it is delayed, you can raise a complaint with MOHRE.
Does this calculator work for DIFC and ADGM employees?
No. It follows the mainland UAE labour law. DIFC and ADGM have their own rules, so check your contract and your free zone authority.
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