Your final settlement is everything your employer owes you on the day your employment ends, less anything you lawfully owe them. Gratuity is usually the biggest line, but it is not the only one, and the smaller lines are where mistakes hide.
In short
- It must be paid within 14 days of the end of your contract.
- It should cover salary to your last day, unused annual leave, gratuity and any notice pay or other amounts in your contract.
- Ask for a written breakdown and check it before you sign anything.
What a final settlement includes
| Item | How it is worked out |
|---|---|
| Salary up to your last working day | Full monthly salary ÷ 30 × days worked in the final month |
| Unused annual leave | Basic salary ÷ 30 × leave days earned but not taken |
| End of service gratuity | 21 days of basic pay for each of the first five years, 30 days for each later year |
| Notice pay | Your pay for any part of the notice period your employer did not let you work |
| Other contract amounts | Overtime, commission or bonus already earned, expenses not yet repaid |
| Travel home | The cost of your return journey, where the law or your contract provides for it |
A worked example
Imran is a sales coordinator. His basic salary is AED 7,000 and his total salary is AED 11,000. He joined on 14 February 2022 and resigned with notice. His last working day is 13 October 2026, and he has 12 days of annual leave left.
| Item | Calculation | Amount (AED) |
|---|---|---|
| Salary for 1 to 13 October | 11,000 ÷ 30 × 13 | 4,767 |
| Unused leave, 12 days | 7,000 ÷ 30 × 12 | 2,800 |
| Gratuity, 4 years 8 months | 4 × 4,900 + 3,249 | 22,849 |
| Final settlement | 30,416 |
The gratuity line comes from four full years at 21 days each (AED 4,900 a year) plus 242 days of the fifth year. You can reproduce it in the gratuity calculator with the same dates.
Each item in more detail
Salary to your last working day
You are paid your normal salary, allowances included, up to and including your last working day. That covers your whole notice period if you work it.
Unused annual leave
You earn 30 days of annual leave for each full year of service, and two days a month if you have worked more than six months but less than a year. Leave you have earned and not taken is paid out when you leave, and that payment is calculated on basic salary.
Check the leave balance carefully. It is the line most often understated, usually because leave taken was recorded in working days in one place and calendar days in another.
Gratuity
Due once you have completed a year of service, on the scale shown above. See how to calculate gratuity for the method and gratuity on resignation if you are the one leaving.
Notice pay
Notice runs both ways. If your employer ends the contract and does not want you to work the notice period, it owes you pay for it. If you leave without working your notice, you owe the employer the same, and it can be taken out of the settlement.
Travel home
The employer is normally responsible for the cost of your return to your home country or the place agreed in your contract. That does not apply if you move to another employer in the UAE, and it may not apply when the contract ended for a reason attributable to you.
What can be deducted
An employer may deduct amounts you owe under the law or under a court judgment. In practice the common ones are:
- The balance of a salary advance or company loan
- Pay for notice you did not work
What should not appear is the cost of your visa, work permit or recruitment. The law puts those costs on the employer and they cannot be recovered from you. If you see a deduction you do not recognise, ask what it is and which clause it is based on.
The 14-day deadline
Article 53 requires the employer to pay your wages and all other entitlements within 14 days from the date the contract ends. Many companies pay with the last salary run or on your last day. Fourteen days is the outer limit, not the target.
Checklist before you sign
- Is the basic salary the same as on your contract and payslip?
- Are your first and last working days right?
- Does the leave balance match your own record?
- Is the salary for your final month included?
- Do you understand every deduction?
- Has the money arrived, or do you have a firm date in writing?
When your work permit is cancelled you will be asked to confirm that you have received your entitlements. Treat that signature seriously. It is much harder to argue about a missing amount after you have signed that nothing is missing.
If the settlement is late or wrong
Write to HR first, set out the difference and ask for a corrected breakdown. Our sample letters cover both the first request and the follow-up. If that does not resolve it, a complaint to MOHRE is free, and you have a limited time after leaving to bring it.
Frequently asked questions
How long does a final settlement take in the UAE?
The law gives the employer 14 days from the end of the contract to pay everything you are owed.
Is leave salary calculated on basic salary or full salary?
Unused leave paid out when you leave is calculated on basic salary.
Can my employer deduct visa costs from my final settlement?
No. Recruitment, visa and work permit costs are the employer's responsibility and cannot be charged to the employee.
Do I get a final settlement if I leave during probation?
Yes, for what you have earned: salary up to your last day and any other amounts in your contract. Gratuity is not included, because it needs at least one year of service.
Can my employer hold my settlement until my visa is cancelled?
The 14-day deadline runs from the end of the contract. Cancellation paperwork is not a reason to go past it.