UAE Full and Final Settlement Checklist: Everything You're Owed When You Leave
When a UAE job ends, your final settlement is more than just gratuity. Here's the full checklist of every component you're owed — and the calculator for each one — so nothing is left on the table.
Your full and final settlement is the total your employer must pay you when your UAE employment ends. It's the sum of several distinct entitlements — and because each is calculated differently (some on basic salary, some on gross), it's easy for a payslip to quietly understate one of them. Use this checklist to make sure every line is there.
1. End-of-service gratuity
The headline component. Under Federal Decree-Law 33/2021, after one full year of service you earn 21 days of basic salary per year for the first 5 years, then 30 days per year thereafter, paid on basic salary ÷ 30, capped at two years' total wages. Since the 2021 law, resignation no longer reduces your gratuity. Work it out on the UAE Gratuity Calculator.
2. Unused annual-leave encashment
Any annual leave you've accrued but not taken is paid in cash — on basic salary ÷ 30 × unused days. Remember: encashment is on basic salary only, even though leave taken while employed is paid at full wage. Use the UAE Leave Encashment Calculator, and see our leave encashment guide for the detail.
3. Notice period pay
If your employer ends the contract and asks you to leave before serving your full notice, you're owed pay in lieu — on your gross wage ÷ 30 × unserved days. This is one of the few components on gross rather than basic. Check it with the UAE Notice Period Calculator and read how notice works.
4. Outstanding salary and dues
- Salary up to your last working day, including any partial month.
- Unpaid overtime, commissions or bonuses that are contractually owed.
- Reimbursable expenses you've incurred and not yet claimed.
5. Air ticket / repatriation (if applicable)
Many UAE contracts entitle a departing employee (and sometimes family) to a flight home or its cash value, unless you're immediately joining another UAE employer. Check your contract — this is a contractual, not a universal statutory, entitlement.
6. Deductions (what comes OFF the settlement)
Your settlement can legitimately be reduced by things you owe the employer:
- Any salary advances or loans outstanding.
- Pay in lieu of notice you owe — if you resigned and didn't serve your notice, the shortfall can be offset.
- Documented company property or costs recoverable under the contract.
Put it all together
The UAE Final Settlement Calculator combines gratuity, leave encashment, notice and pending dues into one figure so you can sanity-check the number your employer gives you.
Don't forget: ILOE is separate
If you were made redundant (involuntary job loss), your ILOE unemployment insurance benefit is not part of the employer's settlement — it's a separate government-scheme payout of 60% of your basic salary, claimed within 30 days at iloe.ae. See the ILOE Calculator and our ILOE guide. You can receive both your employer settlement and ILOE.
The wage-basis cheat sheet
The single most useful thing to remember when checking a settlement is which salary each line uses:
| Component | Wage basis |
|---|---|
| Gratuity | Basic salary ÷ 30 |
| Leave encashment | Basic salary ÷ 30 |
| Notice pay in lieu | Gross wage ÷ 30 |
| Outstanding salary | As per contract (gross) |
Final settlement checklist
| ✓ | Item | Calculator |
|---|---|---|
| ☐ | End-of-service gratuity | Gratuity |
| ☐ | Unused leave encashment | Leave |
| ☐ | Notice pay in lieu (if owed to you) | Notice |
| ☐ | Salary to last day + pending dues | — |
| ☐ | Air ticket / repatriation (if in contract) | — |
| ☐ | Less: advances / notice you owe | — |
| ☐ | ILOE claim (if made redundant) | ILOE |
Source: figures per the statutory formulas on each linked Calcnate calculator (Federal Decree-Law 33/2021), cross-checked against MOHRE and the U.AE government portal. Ticket/repatriation and some dues are contractual — confirm against your own contract and with MOHRE.
Frequently asked questions
What is included in a UAE full and final settlement?
End-of-service gratuity, encashment of unused annual leave, any notice-period pay in lieu owed to you, outstanding salary and dues to your last working day, and (where the contract provides) an air ticket or repatriation allowance — less any advances or notice you owe the employer.
Is gratuity calculated on basic or gross salary in a UAE settlement?
Gratuity and unused-leave encashment are both calculated on basic salary (÷30), while notice pay in lieu is calculated on the gross wage (÷30). Mixing up these bases is the most common settlement error.
Is ILOE part of my final settlement?
No — ILOE unemployment insurance is a separate government-scheme payout for involuntary job loss, claimed within 30 days at iloe.ae. It is not paid by your employer, and you can receive both your employer settlement and ILOE.
Can my employer deduct money from my final settlement?
Yes, legitimately — outstanding salary advances or loans, any notice period you owe but didn't serve, and documented recoverable company costs can be offset against your settlement.
Am I owed an air ticket when I leave a UAE job?
Often, but it's a contractual entitlement rather than a universal statutory one. Many contracts provide a flight home or its cash value unless you're immediately joining another UAE employer — check your own contract.