UAE Final Settlement Calculator
Updated November 2026 · Free · No sign-up
Calculate your UAE final settlement — gratuity + unpaid salary + leave encashment + notice compensation, everything the law says must land in your account within 14 days of your last day.
Quick answer: Final settlement = gratuity (21/30-day formula) + unpaid salary days + encashment of unused annual leave (on basic) + notice-period dues − documented deductions. A 5-year employee on AED 10,000 basic with 20 unused leave days typically collects AED 45,000-50,000.
The Settlement Components
| Component | Rule |
|---|---|
| Gratuity | 21 days basic/yr (first 5) + 30/yr beyond, basic ÷ 30 daily rate, 1-yr minimum, 2-yr cap |
| Unpaid salary | Full salary (basic + allowances) ÷ 30 × days worked |
| Leave encashment | Unused annual leave × (basic ÷ 30) — the law prices encashment on basic |
| Notice dues | Worked notice = normal salary; payment in lieu = full salary for the notice balance; employee shortfall can deduct the same measure |
| Other | Unpaid commissions/bonuses per contract; repatriation ticket where contractual/applicable |
| Deadline | All of it within 14 days of the end date (Art. 53) |
Worked Example — 5 Years, AED 10,000 Basic (15,000 Gross)
Gratuity: 5 × 21 × 333.33 = 35,000. Unpaid salary (10 days on gross): 15,000/30 × 10 = 5,000. Leave: 20 days × 333.33 = 6,667. Minus 2,000 loan → AED 44,667, due within two weeks.
The Usual Deduction Disputes
- Visa/recruitment costs: NOT deductible — charging employees for visas is illegal in the UAE.
- Training bonds: enforceable only if written, reasonable, and genuinely spent.
- Notice shortfall: deductible at the compensation measure when you leave early without agreement.
- "Absconding" claims: a pressure tactic in disputes — a MOHRE complaint beats negotiating against a threat.
Getting Paid in 14 Days (The Sequence)
- Written handover + asset returns with receipts before the last day.
- Request the settlement breakdown in writing — compare each line against this calculator.
- Day 15 unpaid: file at MOHRE (80060 / app) — conciliation is fast, free, and employers settle quickly because unresolved cases hit their license standing and block new work permits.
- Bank-transfer evidence matters: settlements must flow through documented channels (WPS-era practice), not cash-against-waiver games. Don't sign a full-and-final receipt before the money clears.
Expats Leaving the Country
Time the exit: settlement (14 days) vs visa cancellation (employer-driven, usually days) vs the grace period for status change. Collect: settlement, experience certificate, and cancellation paperwork before flying — chasing dues from abroad through POAs is possible but painful. Gratuity is tax-free in the UAE; check home-country tax on remitting it (India: generally non-taxable for NRIs as foreign income earned abroad, but residency rules decide — verify your year's status).
Frequently Asked Questions
What is included in a UAE final settlement?
Gratuity, unpaid salary, unused annual leave encashed on basic, notice dues, and contractual items like commissions or repatriation tickets — minus documented loans.
When must the final settlement be paid in the UAE?
Within 14 days of the employment end date under Article 53 — delays go to MOHRE, whose conciliation process is free and fast.
Is leave encashment on basic or gross salary?
Basic — the Labour Law prices unused annual leave at basic ÷ 30 per day (contracts can be more generous).
Can my employer deduct visa costs from my settlement?
No — recruitment and visa costs are the employer's by law; such deductions are illegal and recoverable at MOHRE.
What if I leave without serving full notice?
The employer may deduct compensation for the unserved balance (mirror of pay-in-lieu) — agree handover trades in writing where possible.
Is the UAE settlement taxable?
Not in the UAE. Home-country treatment on remittance depends on your tax residency — Indian NRIs generally remit tax-free, but verify your residency facts.
✓ Formula verified • Last updated: November 3, 2026