UAE Full & Final Settlement 2026: What You're Owed When You Leave
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When your UAE job ends, your full and final settlement is more than just gratuity. This guide breaks down every component you are owed and how each is calculated.
The five parts of a settlement
- End-of-service gratuity — 21 days' basic pay per year for the first 5 years, 30 days after (see our gratuity calculator).
- Unused annual leave — encashed at your basic daily wage.
- Pending salary — any worked days not yet paid, at your gross daily wage.
- Notice pay — if the employer ended the contract without serving notice, they owe you pay in lieu.
- Deductions — outstanding loans or advances are subtracted.
Worked example
3 years' service, AED 6,000 basic / AED 10,000 gross, 12 leave days owed, 8 days pending salary:
- Gratuity = (6,000÷30) × 21 × 3 = AED 12,600
- Leave = (6,000÷30) × 12 = AED 2,400
- Pending = (10,000÷30) × 8 = AED 2,667
- Settlement ≈ AED 17,667
The 14-day rule
Your employer must pay your full settlement within 14 days of your last working day. Late payment can be raised with MOHRE.
A tip most people miss
Gratuity and leave are paid on basic salary, but pending salary and notice are on gross. Getting these bases right is the difference between the number your employer offers and the number you are actually owed.
Frequently asked questions
What is included in a UAE full and final settlement?
Gratuity, encashment of unused annual leave (at basic wage), pending unpaid salary, notice-period pay if the employer ended the contract without notice, minus documented deductions like loans or advances.
Is annual leave encashed on basic or gross salary?
Unused annual leave is encashed at the basic wage.
When must the final settlement be paid?
Within 14 days of the contract end date.
Do I lose gratuity if I resign?
No — since Decree-Law 33/2021, resignation no longer reduces gratuity for anyone with over 1 year of service.