🇦🇪 UAE final settlement calculator

Your final settlement is more than gratuity. Add unpaid salary, unused leave, notice pay and any loans to see what you should actually receive on your last day.

Estimated final settlement · 🇦🇪 UAE

AED 17,500

Service: 5 years

End-of-service gratuity: AED 17,500

Wage used: AED 5,000/month · Daily rate: AED 166.67 (÷30)

Sending it home?

…

Mid-market rate. Banks and exchange houses often add 1 to 3% in hidden fees.

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Final settlementAED 17,500 ↓

What goes into a final settlement

Gratuity: your end-of-service benefit, calculated from your service length and wage.
Unpaid salary: days worked in your last month that have not been paid yet (full salary including allowances).
Leave encashment: unused annual leave paid in cash, at the daily wage (monthly wage ÷ 30).
Notice pay: if either side ends the contract without serving notice, the notice period is paid out.
Deductions: loans, salary advances or other amounts you owe the employer.

How gratuity works in United Arab Emirates

You must complete at least 1 year of continuous service.
21 days of basic salary for each of the first 5 years.
30 days of basic salary for each year after 5 years.
Part years are paid pro rata. Days of unpaid absence are not counted.
Total gratuity cannot exceed 2 years (24 months) of basic salary.

If you resign

Since February 2022 there is no reduction for resigning. You get the same gratuity whether you resign or are terminated (unless dismissed under Article 44).

Good to know

Applies to mainland private-sector employees. DIFC and ADGM free zones have their own rules (DIFC uses the DEWS savings plan).
Employers who joined the optional savings scheme may pay through that scheme instead.

Gratuity examples in AED

Employer ended the contract, salary used for gratuity, no unpaid leave.

Monthly salary	1 yr	3 yrs	5 yrs	10 yrs
AED 3,000	AED 2,100	AED 6,300	AED 10,500	AED 25,500
AED 5,000	AED 3,500	AED 10,500	AED 17,500	AED 42,500
AED 8,000	AED 5,600	AED 16,800	AED 28,000	AED 68,000
AED 12,000	AED 8,400	AED 25,200	AED 42,000	AED 102,000
AED 20,000	AED 14,000	AED 42,000	AED 70,000	AED 170,000

Gratuity by years of service

After 1 year After 2 years After 3 years After 4 years After 5 years After 6 years After 7 years After 8 years After 9 years After 10 years

Frequently asked questions

How is gratuity calculated in UAE?

You must complete at least 1 year of continuous service. 21 days of basic salary for each of the first 5 years. 30 days of basic salary for each year after 5 years. Part years are paid pro rata. Days of unpaid absence are not counted. Total gratuity cannot exceed 2 years (24 months) of basic salary.

Do I get gratuity if I resign in UAE?

Since February 2022 there is no reduction for resigning. You get the same gratuity whether you resign or are terminated (unless dismissed under Article 44).

Are allowances included in gratuity?

Use your last basic salary only. Housing, transport and other allowances are not part of UAE gratuity.

Is the daily wage based on 30 days or 365 days?

UAE uses the monthly wage divided by 30 to get a daily wage.

Which law is this based on?

Federal Decree-Law No. 33 of 2021, Article 51. Enforced by the Ministry of Human Resources and Emiratisation (MOHRE). Last checked by us on 5 October 2026.

Sources

Federal Decree-Law No. 33 of 2021, Article 51. Last checked 5 October 2026.

This is an estimate, not legal advice. If your employer disagrees, contact the Ministry of Human Resources and Emiratisation (MOHRE).