UAE Final Settlement Calculator
Calculate statutory end-of-service gratuity (21 & 30 days tiers), unused annual leave cash compensation, notice period pay, itemized deductions, and the mandatory 14-day settlement payment deadline.
Employment & Settlement Inputs
Provide service dates, wage components, and contractual terms. Expatriate gratuity is strictly based on the last basic wage.
- Qualifying Service: 5 years, 9 months, 24 days (2124 calendar days)
- Daily Basic Wage (Basic Salary AED 12,000 ÷ 30): AED 400.00
- Gratuity calculation: Article 51 Gratuity: 5.82 qualifying years. First 5 years @ 21 days/yr (105 days = AED 42,000.00) + 0.82 years @ 30 days/yr (24.47 days = AED 9,788.00).
- Unused Annual Leave Compensation (Article 29): 10 days unused leave days × AED 400.00 / day = AED 4,000.00.
- Outstanding Wages: 25 working days × AED 600.00/day (Total Salary basis) = AED 15,000.00.
Understanding UAE Final Settlement Legislation
Final settlements in the UAE are regulated by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations and Cabinet Resolution No. 1 of 2022. Below are key legal requirements.
1. Gratuity Tiers and Basic Salary Rule (Article 51)
For full-time expatriate employees completing at least one continuous year, gratuity is 21 days of basic wage per year for the first five years, and 30 days per year for subsequent years. Gratuity is calculated strictly on the last basic salary (not gross salary). The maximum statutory gratuity is capped at two years’ basic wage.
2. Unused Annual Leave Cash Payout (Article 29)
Employees are entitled to cash compensation for any accrued unused annual leave at the time of contract termination. Under UAE Government guidelines, this compensation is calculated based on the employee's basic wage divided by 30 days.
3. Alternative End-of-Service Savings Scheme (Res. 96/2023)
Employers enrolled in the voluntary Savings Scheme pay monthly contributions into accredited investment funds. Traditional Article 51 gratuity stops accruing from the enrollment date, and pre-enrollment gratuity is preserved until termination.
4. Mandatory 14-Day Payment Deadline (Article 53)
Employers are legally mandated to pay all wages, gratuity, and termination entitlements within 14 calendar days from the date of contract termination. Delayed settlement can trigger MoHRE fines and employee labour complaints.
Official Government References
All formulas, eligibility rules, and statutory caps are verified against official legislation from the Ministry of Human Resources and Emiratisation (MoHRE) and the UAE Federal Government portal.
Official English text of the UAE Labour Law governing private sector employment.
Official federal guide on statutory gratuity calculation, basic salary basis, and the Savings Scheme.
Guidance on annual leave accrual and cash compensation for unused leave at termination.
Frequently Asked Questions
Key questions regarding end-of-service gratuity, basic salary rules, and final settlements in the UAE.
