UAE Final Settlement Calculator 2026
Work out what is due when an employee leaves: last month's salary, gratuity under Federal Decree-Law No. 33 of 2021, unused leave and loans, with every step shown.
In brief: A UAE final settlement is the last month's salary for the days worked, plus end-of-service gratuity (21 days' basic a year for the first 5 years, 30 days after, nothing under one year, capped at two years' wage), plus unused annual leave paid out, minus any loan or advance still owed. Under the 2021 law, gratuity is the same whether the employee resigns, is terminated or reaches the end of the contract.
Enter the details
What a UAE final settlement includes
When someone leaves, the employer works out what is owed each way and settles it together. Four parts make it up, and the calculator above shows each one.
1. Salary for the last month
Basic and fixed allowances for the days employed in the month of the last working day, worked out over the calendar days of that month. Unpaid days in that month come off at basic plus allowances divided by 30.
2. End-of-service gratuity
Under Federal Decree-Law No. 33 of 2021: 21 days of basic salary for each of the first five years, 30 days for each year after that, part-years counted proportionally, nothing under one full year, and never more than two years' wage. The calculator counts service from the joining date up to and including the last working day. For gratuity on its own, use the UAE gratuity calculator.
3. Unused annual leave
Leave earned and not taken is paid out at the unused days times the monthly pay divided by 30, on basic salary or on basic plus allowances, as the contract or company policy says.
4. Loans, advances and other amounts
Any loan or salary advance still outstanding is deducted, along with anything else the employee agreed to repay. Amounts owed to the employee, such as agreed notice pay, are added.
Final settlement: common questions
What does a UAE final settlement include?
It brings together what is due when employment ends: salary for the days worked in the last month, end-of-service gratuity for service of one year or more, pay for annual leave earned and not taken, and any other amount agreed, less any loan or salary advance still outstanding and anything else the employee owes.
Does resigning reduce gratuity in the UAE?
Not under Federal Decree-Law No. 33 of 2021. Gratuity is worked out the same way whether the employee resigns, is terminated or reaches the end of the contract. Reductions for resignation that older guides mention come from the rules before the 2021 law.
How is gratuity calculated?
Twenty-one days of basic salary for each of the first five years of service, then thirty days of basic salary for every year after that, with part-years counted proportionally. There is no gratuity under one full year of service, and the total is capped at two years' wage. Only basic salary counts.
How is unused annual leave paid out?
This calculator multiplies the unused days by the monthly pay and divides by 30. Choose basic salary or basic plus allowances, whichever the employment contract or company policy uses.
How is the last month's salary worked out?
This calculator pays basic and fixed allowances for the days employed in that month, divided by the number of calendar days in it, so leaving on 15 March pays 15 of 31 days. Any unpaid days are then deducted at basic plus allowances divided by 30 for each day.
Do unpaid leave days count towards gratuity?
No. Days of unpaid absence are excluded from the service period used for gratuity. This calculator counts from the joining date to the last working day, so move the joining date forward by any unpaid days before you calculate.
When must the final settlement be paid?
Within fourteen days of the end of the contract: the gratuity, along with any other outstanding wages and entitlements.
Is this calculator legal advice?
No. It is general information, not legal advice. It works from the figures you enter, and the employment contract, any free zone rules and the facts of the case can change the result. For a specific dispute, ask a licensed UAE labour-law professional.
Wurxa Payroll works this out for you when someone leaves.
Enter the last working day and Wurxa Payroll takes the joining date, basic salary, allowances and any loan balance from the employee's record, suggests the unused leave, and works out the gratuity and leave pay. The settlement is paid with that month's pay run, which builds the WPS file.
Payroll is an add-on for the Starter, Business and Scale plans, and the 14-day trial includes it. No credit card.
