UAE final settlement planner: gratuity, leave salary and notice in one estimate

Three separate amounts usually make up a UAE final settlement: end-of-service gratuity, payment for unused annual leave, and any pay in lieu of notice that was not served. This planner adds those three lines together so you can walk into the HR meeting with one planning figure instead of three guesses. Every line is an estimate. Deductions, salary advances and loans are out of scope, so your actual transfer can be lower.

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How each line is worked out

Service years are the calendar days between your start date and last working day, less unpaid absence, divided by 365. Gratuity uses the Decree-Law 33/2021 floor: 21 days of basic pay per year for the first five years, 30 days of basic pay per year after that, with the whole amount capped at 24 months of total remuneration. Leave salary values each unused day at basic divided by 30. Notice values each unserved day at basic or total divided by 30, depending on what your contract says. All four are estimates, not a promise of payment.

Worked example

Basic AED 10,000, total AED 12,000, 6.00 years of service, 5 unused leave days, 14 unserved notice days paid on basic.

  • Gratuity: 10,000 × (21/30) × 5 = AED 35,000 for the first five years, plus 10,000 × 1.00 = AED 10,000 for year six, so AED 45,000. The cap is 12,000 × 24 = AED 288,000, so the cap does not bite.
  • Leave salary: 5 × (10,000 / 30) = AED 1,666.67.
  • Notice: 14 × (10,000 / 30) = AED 4,666.67.
  • Total planning figure: about AED 51,333.34 (estimate).

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FAQs

Does this include my deductions or loans?

No. Salary advances, loan balances, visa cost recovery and disputed deductions are out of scope. They are subtracted from the figure this planner shows, so treat the output as a ceiling for planning, not a payout.

When must the money be paid?

A payment window after the end of the contract is commonly cited, but the exact obligation and how it applies to your case is a legal topic to confirm in the legislation linked below rather than something this page can promise.

What if my service is under one year?

The statutory gratuity floor is zero below one year of service. Unused leave and any notice pay can still be due, so the planner keeps those lines.

Why is total salary asked for if gratuity uses basic?

Because the accrual is calculated on basic pay, but the law caps the total gratuity at two years of total remuneration. The planner needs both to apply the cap correctly.

Sources

Estimate and planning figure only, not legal or financial advice. Reviewed 29 August 2026.