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Free tool · UAE labour law 2021

UAE final settlement calculator

Gratuity, unused leave, last month's salary and notice pay in one breakdown. Enter the salary and dates; it updates as you type. Free, no sign-up.

Final settlement

AED 47,810.43

Due within 14 days of the end of the contract.

Gratuity on basic salary
AED 38,010.43
Unused leave: 12 days × basic ÷ 30
AED 2,800.00
Last month: 20 days × wage ÷ 30
AED 7,000.00
Total to pay
AED 47,810.43

A guide, not legal advice. Gratuity uses basic × 12 ÷ 365 as the daily rate. Contracts can add items such as a return ticket or a bonus. Check with MOHRE if in doubt.

A worked example

A stylist on a basic salary of AED 7,000 and a total wage of AED 10,500 leaves after six years, with 12 days of leave unused and 20 days of the last month unpaid. Leave pays 12 × 7,000 ÷ 30 = AED 2,800. The 20 days of salary pay 20 × 10,500 ÷ 30 = AED 7,000. Gratuity for six years adds about AED 31,000. Use the calculator for the exact figure on any dates.

Substrate ERP

Final settlements, ready when someone leaves

Substrate's People module tracks leave balances, salary and service dates for every employee, and builds the final settlement for you to approve, next to the visa cancellation and the last WPS payment.

  • Leave balances tracked
  • Gratuity and settlement built for you
  • WPS payroll and visas
Get early access People and WPS payroll come with the SME plan: AED 19.99 per user a month (minimum 3 users), excluding VAT, with a 14-day free trial. Questions: substrateaierp@gmail.com

Questions owners ask

What is included in a UAE final settlement?

Usually the end-of-service gratuity, pay for unused annual leave, salary for days worked in the last month, notice pay if the notice is not worked, and anything else the contract promises, minus lawful deductions.

Is unused leave paid on basic or total salary?

On basic salary. Cabinet Resolution No. 1 of 2022 says leave owed at the end of service is paid on the basic wage, and the UAE government portal says the same.

How many days of annual leave does an employee earn?

30 days a year after one year of service. Between six months and one year, 2 days for each month. Leave in the final part year is paid in proportion to the time worked.

How soon must the final settlement be paid?

Within 14 days of the end of the employment contract.

Is notice pay based on basic salary?

No. If the notice period is not worked, the party ending the contract pays the wage for the notice period, which is normally the full wage the employee would have earned.

Does resigning change the settlement?

Under the 2021 law, resigning does not reduce gratuity for private-sector employees. Unused leave and salary earned are still owed.

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