UAE final settlement: what you are owed when your job ends

When a job in the UAE ends, whether you resign or your employer ends the contract, you are owed a final settlement. It is more than gratuity, and each part is calculated differently.

The five parts

1. Unpaid salary for days worked up to your last day, on your total salary.
2. Gratuity if you have completed one year: 21 days of basic salary for each of the first five years and 30 days for each year after, capped at two years of basic salary (Article 51).
3. Unused annual leave, paid on basic salary (Article 29 and Cabinet Resolution No. 1 of 2022, Article 19).
4. Notice pay if your employer asked you to leave without working your notice. It is the wage for the unserved days (Article 43).
5. Anything else owed, such as overtime or allowances already earned.

What can be deducted

A salary advance, a loan from the employer, or notice pay if you left without serving your notice. Deductions must be lawful, and you should get a written breakdown.

Worked example

Basic AED 5,000, total salary AED 8,000, 4 years of service, 10 unused leave days, 15 days of salary unpaid and an AED 1,000 advance: gratuity AED 14,000 + leave AED 1,666.67 + salary AED 4,000 − AED 1,000 = AED 18,666.67.

When it must be paid

Your employer must pay everything within 14 days of the end of the employment relationship (Article 53). If it is late or wrong, you can file a complaint with MOHRE.

These rules apply to private sector jobs under the federal Labour Law, including most free zones. DIFC and ADGM have their own laws.