What a full and final settlement includes
When employment ends in the UAE, the final payment is the sum of several entitlements — not just gratuity. A correct settlement adds up:
- End-of-service gratuity— 21 days' basic pay per year for the first five years, 30 days' thereafter, under Federal Decree-Law No. 33 of 2021.
- Unused annual leave — paid on the total wage, not just basic.
- Notice period — any notice owed but not worked, again on total pay.
- Pending salary and any other confirmed dues.
- Less deductions — outstanding loans, advances or agreed amounts.
The detail that trips people up: gratuity is calculated on basic salary, while leave and notice are calculated on the total wage. Mixing the two is the most common settlement error, and it usually understates what a leaving employee is owed.
Whether you're leaving or letting someone go
Employees use this to check the number they've been offered; employers use it to prepare a correct settlement and avoid a labour complaint. Either way, if the figure is disputed or the contract is complicated, our PRO and payroll team prepares full and final settlements that hold up. For gratuity on its own, use the gratuity calculator.
This estimates a standard settlement under UAE labour law as at July 2026. Your exact figure depends on your contract, leave balance and the reason for leaving — a figure to confirm, not legal advice.