UAE final settlement calculator: Every line of the
final payment, gratuity included.
Final salary, unused leave, notice in lieu, end-of-service gratuity and deductions, each with the working printed beside it and the salary basis stated.
Estimated net settlement payable
5.00 years of serviceAED 40,000.00
The settlement, line by line
- Pending salary, final part-month0 days × AED 500.00 daily rate (basic + allowances ÷ 30)
- AED 0.00
- Unused annual leave encashment10 days × AED 500.00 daily rate (basic + allowances ÷ 30)
- AED 5,000.00
- Notice period paid in lieu0 days × AED 500.00 daily rate (basic + allowances ÷ 30)
- AED 0.00
- End-of-service gratuity5.00 years of service, on basic monthly salary
- AED 35,000.00
- Subtotal before deductions
- AED 40,000.00
- Outstanding loan or advanceRecovered in full from the settlement
- − AED 0.00
- Net payable
- AED 40,000.00
How the gratuity line was worked out
- Daily rate (monthly ÷ 30)
- AED 333.33
- First 5.00 years at 21 days each
- AED 35,000.00
Gratuity is the one statutory line here. It is calculated on basic monthly salary because that is the basis the law of this country sets, not a basis you can choose.
DenwaysHR assembles this statement for every leaver from the same leave, attendance and loan records payroll already holds.
See how payroll handles itIndicative only. This calculator applies United Arab Emirates labour law to the figures you enter. Contracts, unpaid leave, outstanding dues and free-zone rules can all change the result. Confirm the final amount with your legal adviser before paying or accepting it.
Which salary applies. The correct basis for leave encashment and for notice pay depends on the employment contract and company policy, which is why you choose it above and why it is printed against each line. Gratuity is different: it uses the statutory basis set out in the gratuity calculator, and daily rates throughout are monthly salary divided by 30.
What goes into a full and final settlement
A final settlement is everything owed to an employee on their last day, less what they owe the company. Only one line of it is fixed by statute. The rest comes from the contract and the employer's records.
The lines the calculator adds up
- End-of-service gratuity, by the statutory rule for the country
- Salary for the final part-month worked
- Encashment of annual leave that was earned and not taken
- Notice pay in lieu, where notice is paid instead of served
- Each of those three is derived from a daily rate of monthly salary ÷ 30. Whether that salary is basic alone or basic plus allowances is set by the contract, so you choose it for each line
- Deductions for loans, salary advances and unreturned assets, from the employer's own records
The calculator does not decide whether notice was correctly served or whether a deduction can lawfully be recovered. Both are legal questions.
A worked example
Basic AED 6,000 and total AED 10,000 a month, seven years of service in the UAE, last day on the 15th, ten days of unused leave, an outstanding loan of AED 3,000.
- Gratuity (21 × 5 × 200, then 30 × 2 × 200)
- AED 33,000
- Final 15 days, on total salary (10,000 ÷ 30 × 15)
- AED 5,000
- 10 days of leave, on basic salary (200 × 10)
- AED 2,000
- Less the outstanding loan
- − AED 3,000
- Net settlement
- AED 37,000
Change the basis of the leave line from basic to total salary and it becomes AED 3,333.33. The calculator shows which basis each line used.
What is included in a final settlement?
End-of-service gratuity, salary for the last part-month, payment for unused annual leave and any notice pay in lieu, less loans, advances and the value of company property not returned.
Is leave encashment paid on basic or total salary?
The basis for leave encashment is set by the employment contract and company policy, so the calculator lets you choose the basis for each line and shows it in the working.
Is a final settlement the same as gratuity?
No. Gratuity is one line of it, and the only one fixed by statute. The settlement also covers pending salary, unused leave, notice and deductions.
How is the daily rate worked out?
Monthly salary divided by 30, the calendar-day convention also used for gratuity. A contract that pays on working days will give a different figure.
Guides
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