End of Service Calculator UAE 2026: Full Settlement Tool
Your UAE end of service settlement is more than gratuity. The settlement adds unused annual leave, notice pay and any unpaid salary, then subtracts documented deductions. This calculator works out all four parts and gives you one figure.
What does a UAE end of service settlement include?
A UAE end of service settlement includes four separate entitlements. Article 51 of Federal Decree-Law No. 33 of 2021 governs the gratuity. Article 29(9) governs the leave encashment. Employers combine all four into one final payment.
Gratuity drives most of the total. The step by step method sits in how to calculate gratuity in UAE.
| Component | Basis | Legal source |
|---|---|---|
| Gratuity | 21 days of basic salary per year for the first 5 years, then 30 days per year | Article 51 |
| Unused annual leave | Basic salary divided by 30, multiplied by unused days | Article 29(9) |
| Notice pay | Paid where the employer ends the contract without requiring the notice period | Article 43 |
| Unpaid salary | Any wages outstanding to your last working day | Article 22 |
How is each part of your settlement calculated?
Gratuity uses your last basic salary, not your total package. UAE employers exclude housing, transport and utility allowances from the gratuity calculation. A worker on AED 15,000 total with AED 9,000 basic accrues gratuity on AED 9,000.
Unused annual leave follows the same basic-salary rule. Article 29(9) sets the cash equivalent at basic salary. UAE annual leave entitlement runs to 30 days per completed year of service. Workers who complete 6 to 12 months accrue 2 days per month.
A worker on AED 9,000 basic with 20 unused leave days receives AED 6,000. The arithmetic runs 9,000 divided by 30, multiplied by 20 days.
What is the difference between gratuity and end of service benefits?
Gratuity is one component of end of service benefits. End of service benefits describe the whole final payment. Gratuity describes the length-of-service award inside it. Employees who calculate gratuity alone underestimate the total they are owed.
A worker with 5 years of service on AED 10,000 basic, 20 unused leave days and AED 3,000 of unpaid salary receives AED 35,000 gratuity plus AED 6,667 leave plus AED 3,000 salary. The settlement totals AED 44,667. The gratuity alone accounts for 78 percent.
When must your employer pay your end of service settlement?
UAE employers settle all wages, entitlements and gratuity within 14 days of the contract ending. The 14-day clock starts on your last working day, not on your visa cancellation date. Signing visa cancellation papers before the settlement clears removes your leverage.
Article 51 and the 14 day deadline both sit in federal law. The UAE Labour Law gratuity guide covers enforcement when an employer misses it.
- Request a written breakdown showing basic salary, service days and the day rate applied
- Compare the employer figure against the calculator above before you sign
- Keep your MOHRE contract and your final payslip
- Sign cancellation papers only after the settlement reaches your account
What can your employer deduct from your settlement?
Employers deduct documented loans and advances only. Article 51(6) requires a written agreement for any deduction. Deductions outside that written agreement carry no legal basis. Ask for an itemised list rather than a single net figure.
Unpaid leave reduces the service period the gratuity is built on. The unpaid leave guide sets out how many days each absence costs.
What if your employer pays less than the calculator shows?
Six things explain most gaps between your figure and the employer figure. Work through them in order before escalating. Most disputes resolve as definition problems.
| Check | What to look for |
|---|---|
| Salary used | Contractual basic salary, and the current figure rather than a pre-raise one |
| Service start date | Your actual start date, not the visa issue date |
| Unpaid leave | The exact number of unpaid days removed from the service period |
| The 5-year line | Years beyond the fifth accrue at 30 days, not 21 |
| Contract renewals | Renewals with the same employer do not reset the service clock |
| Leave encashment | Paid on basic salary under Article 29(9), and often omitted entirely |
Mainland employees escalate to MOHRE. Free zone employees file with their zone authority instead. The full claiming process covers the steps in detail.
Frequently asked questions
Does the end of service calculator work for free zone employees?
Most UAE free zones apply the same 21 and 30 day formula on basic salary. JAFZA, DMCC and DAFZA follow the federal rates. DIFC replaced gratuity with the DEWS savings scheme, so DIFC employees follow a different system.
Is end of service pay taxable in the UAE?
The UAE applies no personal income tax to end of service payments. Workers who remit the money home face tax rules in their own country instead.
Do you get end of service pay after resigning?
Resignation and termination produce the same gratuity since February 2022. The old unlimited-contract reduction for resignation no longer applies.
What happens to end of service pay under one year of service?
No gratuity is payable below one year of continuous service. Unpaid salary and accrued annual leave remain payable in full.
How does unpaid leave change the settlement?
Days of unpaid absence come out of the service period before the gratuity calculation runs. Paid annual leave, sick leave within entitlement and public holidays all count as service.
