UAE Labour Law · MOHRE rules

Your full final settlement, not just gratuity

Leaving a job in the UAE? Your settlement is gratuity plus unused leave encashment. Most calculators stop at gratuity — this one doesn't.

AED

Basic only — allowances are excluded from gratuity and leave encashment.

AED

Used only for context — unpaid salary days are settled at full salary.

years
days

Estimated settlement

AED

End-of-service gratuity
Leave encashment (basic ÷ 30 × days)
Plusany unpaid salary days
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Know your rights

Four things employers get wrong in settlements

  • Calculating gratuity on total salary? No — it's basic salary only, but resignation no longer reduces it (the old pro-rated resignation scale ended with the 2022 law).
  • "Leave lapses if unused." Not on termination — accrued leave for up to two years must be encashed on basic salary.
  • Payment timing: all end-of-service entitlements must be paid within 14 days of the end date.
  • Free-zone schemes differ: DIFC uses the DEWS savings plan instead of gratuity; some zones have their own rules. Check your zone before assuming.

Related: gratuity-only calculator · corporate tax calculator