What a final settlement includes
When a job in the UAE ends, the employer has to settle every amount that is still owed. Under Article 53 of Federal Decree-Law No. 33 of 2021, this must be paid within 14 days of the contract ending. A complete settlement usually contains:
- End-of-service gratuity for staff with at least one year of continuous service (Article 51).
- Salary for unused annual leave, including leave earned in the final part year (Article 29).
- Unpaid salary for the days you worked in the last month.
- Notice pay if the employer ended the contract without letting you work the notice period (Article 43).
- Other contractual dues such as a return air ticket or an agreed bonus.
- Minus lawful deductions, for example an outstanding salary advance or loan.
Which salary is used for each part
| Item | Salary used | Daily rate |
|---|---|---|
| Gratuity | Basic salary | Basic ÷ 30 |
| Unused leave on exit | Basic salary | Basic ÷ 30 |
| Unpaid salary days | Total salary | Total ÷ 30 |
| Notice pay | Total salary | Total ÷ 30 |
Worked example
Basic salary AED 6,000, total salary AED 10,000, 4 years of service, 12 unused leave days, 10 unpaid salary days, no notice pay, AED 500 advance to repay.
- Gratuity: 4 × 21 × (6,000 ÷ 30) = AED 16,800
- Leave: 12 × 200 = AED 2,400
- Salary: 10 × (10,000 ÷ 30) = AED 3,333.33
- Less advance: AED 500
Estimated settlement: AED 22,033.33
Before you sign the clearance
Ask HR for a written breakdown and compare it with the result above. If an amount is missing or wrong, raise it in writing first. If the issue is not resolved, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its app, website or call centre on 600 590000. Free zones such as DIFC and ADGM have their own employment laws, so the result here may not apply there.
Frequently asked questions
How is a UAE final settlement calculated?
Add gratuity (basic salary), salary for unused leave (basic salary), unpaid salary days and notice pay (total salary), plus any other contractual dues, then subtract lawful deductions such as advances.
When must the final settlement be paid?
Within 14 days of the end of the contract, according to Article 53 of Decree-Law No. 33 of 2021.
Is notice pay calculated on basic or total salary?
Notice pay compensates the wage you would have earned during the notice period, so it is normally based on your total salary, including fixed allowances.
Can my employer deduct money from my final settlement?
Only for reasons the law allows, such as repaying an advance or loan, or amounts ordered by a court. Deductions without a legal basis can be challenged at MOHRE.
Does this calculator work for free zone jobs?
It follows the federal labour law. DIFC and ADGM have their own employment laws with different gratuity rules, so treat the result as a rough guide there.