UAE Full & Final Settlement Calculator
Mainland private sector, under Federal Decree-Law No. 33 of 2021, and each line cites its article. Last reviewed: 2026-09-23.
A UAE final settlement, or full and final settlement, is the last payment when a mainland private-sector employment ends: the wage for days worked and not yet paid, cash for unused annual leave, the end-of-service gratuity and notice pay where the notice was not served, minus lawful deductions. The employer pays it within 14 days of the contract end (Article 53 of Federal Decree-Law No. 33 of 2021). This free calculator itemises that statement, with each line naming the article it comes from.
How to Calculate Final Settlement in the UAE (Step by Step)
Work out each line on its own wage basis, then add them up. The worked example below follows the same steps.
Step 1: Unpaid salary up to the last working day
Full monthly wage ÷ 30 × days worked but not yet paid
Outstanding wages are part of the entitlements the employer must settle within 14 days of the contract end (Art. 53). The ÷30 daily-wage convention is the same one official gratuity guidance applies to a monthly wage; the result is an estimate.
Step 2: Leave encashment for unused annual leave
Basic monthly wage ÷ 30 × unused leave days
Art. 29(9): a worker whose service ends is paid for every accrued leave day not taken, including the pro-rata days of the final part-year, calculated on the basic wage (also Cabinet Resolution No. 1 of 2022, Art. 19(2)).
Step 3: End-of-service gratuity
21 days' basic wage per year for the first 5 years, 30 days beyond
Art. 51: basic salary only, after at least one year of continuous service, capped at two years' wage; unpaid days of absence do not count as service. Computed by the same engine as this site's End of Service calculator.
Step 4: Notice pay (notice period allowance)
Full monthly wage ÷ 30 × notice days not served
Art. 43(3) and (4): the party that does not observe the 30–90 day notice pays the other the wage for the notice period or the part not served, calculated on the last wage received (the full wage). This line is the allowance the employer owes the worker.
Step 5: Other dues and deductions
Add agreed dues; subtract only deductions the law allows
Art. 25(1) lists the cases in which an amount may be deducted from the wage, among them a loan or advance repaid with the worker’s written consent and without interest, and overpaid amounts up to 20% of the wage; with several reasons, the total may not exceed 50% of the wage (Art. 25(2)). Art. 51(7) lets the employer deduct from the gratuity amounts owed under the law or a court judgment. The calculator subtracts the deductions you enter and does not check them against these limits.
Step 6: Add up and check the payment date
Steps 1 to 4 + other dues − deductions = final settlement
The employer pays the total within 14 days of the contract end (Art. 53).
Worked Example: Final Settlement After Termination
The employer ends the contract of a worker who joined on 1 March 2022; the last working day is 20 June 2026, a service of 4 years and 112 days. Basic salary AED 8,000 a month, full wage AED 12,000 (basic plus AED 4,000 of allowances). The 20 days worked in June have not been paid, 14 days of annual leave are unused, the employer did not have the worker serve the 30-day notice, and the worker still owes AED 3,000 of a salary advance repaid with written consent (Art. 25(1)(a)).
Unpaid salary, 20 days of June
AED 12,000 ÷ 30 × 20
AED 8,000.00
Leave encashment, 14 unused days
AED 8,000 ÷ 30 × 14
AED 3,733.33
Gratuity, 4 years and 112 days
4 × 21 days × AED 8,000 ÷ 30 = AED 22,400.00, plus 112/365 × 21 days × AED 8,000 ÷ 30 = AED 1,718.36
AED 24,118.36
Notice pay, 30 days not served
AED 12,000 ÷ 30 × 30
AED 12,000.00
Deduction, salary advance
Repaid with the worker’s written consent (Art. 25(1)(a))
− AED 3,000.00
Final settlement
AED 8,000.00 + 3,733.33 + 24,118.36 + 12,000.00 − 3,000.00
AED 44,851.69
These amounts are this calculator’s output for the inputs above; enter them in the form to get the same statement. The employer pays it by 4 July 2026, 14 days after the contract end (Art. 53).
Resignation vs Termination: What Changes
The money lines do not depend on who ends the contract. After at least one year of continuous service the gratuity is the same on resignation as on termination (Article 51); the one-third and two-thirds resignation reductions came from Federal Law No. 8 of 1980, which Federal Decree-Law No. 33 of 2021 repealed (Article 73(1)). Unused leave is paid on the basic wage in both cases (Article 29(9)).
The notice is what changes. Either party ends the contract with written notice of 30 to 90 days (Article 43(1)). When the employer terminates and does not have the worker serve the notice, it owes the worker the notice allowance of Step 4. When the worker resigns and leaves without serving the notice, the worker owes the employer the allowance for the part not served (Article 43(3)); this calculator does not compute that amount.
During a notice period given by the employer, the worker may take one unpaid working day a week to look for another job (Article 43(5)). No notice is due when the employer dismisses the worker on one of the grounds of Article 44 after a written investigation, or when the worker leaves under Article 45, which keeps the worker’s end-of-service rights.
Basic Wage vs Full Wage — Which Line Uses Which
Two different wage figures feed a UAE settlement, and using the wrong one changes the amounts. The gratuity (Art. 51) and the unused-leave encashment (Art. 29) accrue on the BASIC salary, excluding allowances.
The final-month salary days and the notice allowance (Art. 43) pay for time, so they use the full wage, basic plus allowances: that is what a worked month or a served notice period would have paid.
One place the full wage touches the gratuity: Art. 51 caps the total gratuity at two years' wage, and that cap is expressed in total wage, not basic.
The 14-Day Payment Rule
Under Article 53 of Federal Decree-Law No. 33 of 2021, the employer must pay all outstanding wages, entitlements and gratuity within 14 days of the date the contract ends. The official UAE Government portal states this rule for every private-sector termination.
If the settlement is not paid, the dispute route is a complaint to MOHRE, which can refer the claim onwards to the labour judiciary.
Mainland Only — DIFC, ADGM and Others Differ
This calculator applies Federal Decree-Law No. 33 of 2021, which governs the mainland private sector. DIFC employers fund DEWS or another qualifying scheme, ADGM has its own 2024 Employment Regulations with a 365-day formula, government employers follow separate HR laws, and UAE/GCC nationals are routed through pension authorities.
For those frameworks, use the End of Service calculator on this site, which handles eight employment regimes, each with its own source instrument.
Frequently Asked Questions
What is a full and final settlement in the UAE?
The last payment an employer makes when the employment ends. It covers the wages and all other entitlements due under the law, the contract and the establishment’s rules, and the employer must pay it within 14 days of the contract end (Article 53 of Federal Decree-Law No. 33 of 2021). “Final settlement” and “full and final settlement” name the same statement.
How is a final settlement calculated in the UAE?
Add the unpaid salary (full wage ÷ 30 × days worked and not paid), the unused leave (basic wage ÷ 30 × days, Article 29(9)), the gratuity (Article 51) and the notice pay if the notice was not served (full wage ÷ 30 × days, Article 43), then subtract lawful deductions. For example, a worker on AED 8,000 basic and AED 12,000 full wage, terminated after 4 years and 112 days with 20 unpaid days, 14 unused leave days, 30 days of notice not served and an AED 3,000 advance outstanding, receives AED 44,851.69.
What does a UAE final settlement include?
Outstanding wages for days worked in the final month, end-of-service gratuity under Article 51, payment for unused annual leave under Article 29, notice compensation under Article 43 where notice is paid in lieu, plus any agreed dues, minus documented deductions.
When must the employer pay the final settlement?
Within 14 days of the contract end date. Article 53 of Federal Decree-Law No. 33 of 2021 requires all wages, entitlements and gratuity to be paid in that window.
Is unused annual leave paid on basic or full salary?
On basic salary. The official UAE Government guidance on Article 29 states that payment for unused leave is calculated on the basis of the basic salary, excluding allowances.
How is notice compensation calculated?
Under Article 43, notice is 30 to 90 days, and the party that does not serve it owes the other an allowance equal to the wage for the un-served period, calculated on the last full wage received.
How is the gratuity line calculated?
21 days of basic wage per year for the first five years of service and 30 days per year after that, capped at two years' total wage (Article 51). Service under one continuous year accrues no gratuity.
Does this calculator cover DIFC or ADGM employment?
No. DIFC and ADGM have their own end-of-service regimes, as do government employers and pension-covered nationals. Use the End of Service calculator on this site, which handles eight frameworks with their sources.
Official Sources Used
Mainland private sector, under Federal Decree-Law No. 33 of 2021, and each line cites its article. Last reviewed: 2026-09-23.
Disclaimer
* This statement is an estimate, not legal advice and not an official settlement. Based on Federal Decree-Law No. 33 of 2021 and applicable amendments. Last reviewed: 2026-09-23. For official figures, contact MOHRE. The employment contract, the law that actually applies (the DIFC and ADGM free zones have their own employment laws) and any decision of MOHRE or a court prevail over this estimate — verify with MOHRE or a qualified adviser.