Settlement Calculator UAE - Calculate Your Final Settlement Benefits 2026

What is the UAE Settlement Calculator?

The UAE Settlement Calculator is a comprehensive tool designed for employees working in the UAE who need to calculate their complete final settlement package. Whether you're resigning, retiring, or facing termination, this calculator helps you understand your total entitlements under UAE Labour Law.

Your final settlement in the UAE typically includes multiple components that can be complex to calculate manually. This Online Calculator UAE simplifies the process by computing all applicable benefits in seconds.

Key Benefits of Using This Calculator:

• Comprehensive calculation - Includes gratuity, leave salary, notice period pay, and other benefits
• UAE Labour Law compliant - Updated with the latest 2026 regulations from the Ministry of Human Resources and Emiratisation (MOHRE)
• Instant results - Know your exact settlement amount in seconds
• Easy to use - Simply enter your employment details and get accurate calculations
• Free and unlimited - Calculate as many scenarios as needed without any cost

Understanding your settlement rights helps you plan your next career move with confidence and ensures you receive all entitled benefits from your employer.

INTRODUCTION

How the Settlement Calculator Works

The Settlement Calculator computes your final settlement based on multiple components mandated by UAE Labour Law. Understanding each component helps you verify the accuracy of your employer's settlement offer.

Components of Final Settlement in UAE:

1. Gratuity Payment (End of Service Benefit)

This is calculated based on your length of service and final basic salary:

• For unlimited contracts:
  • Less than 1 year: No gratuity
  • 1-5 years: 21 days of basic salary per year
  • More than 5 years: 21 days for first 5 years + 30 days for each additional year
• For limited contracts:
  • Less than 1 year: No gratuity
  • 1 year or more: Full gratuity as per calculation above

2. Unused Annual Leave Salary

You're entitled to payment for any unused annual leave days. The calculation is: (Basic Salary ÷ 30) × Number of Unused Leave Days. Employees in UAE are entitled to 30 days of annual leave after completing one year of service, or 2 days per month during the first year.

3. Notice Period Compensation

If you or your employer doesn't serve the required notice period, compensation is due. Standard notice periods in UAE are 30 days for unlimited contracts and as specified in limited contracts. The compensation equals your salary for the unserved notice period.

4. Outstanding Salary and Allowances

Any unpaid salary, overtime, or contractual allowances for the final working period must be included in your settlement.

5. Air Ticket (Repatriation)

Employers must provide a return air ticket to your home country or cash equivalent as per your employment contract terms.

Important Calculation Notes:

• Gratuity is calculated using , not total salary including allowances
• Maximum gratuity entitlement is capped at 2 years of basic salary
• Resignation before completing 1 year: No gratuity entitled
• Resignation after 1-5 years: Eligible for full gratuity under new UAE Labour Law
• Termination by employer: Full gratuity regardless of service duration (if more than 1 year)

Finance Calculator suite includes specialized tools for each component, but this settlement calculator combines everything for your convenience.

PRACTICAL EXAMPLES

Example 1: Sales Manager Resignation After 3.5 Years

Scenario: Ahmed works as a Sales Manager at a real estate company in Dubai Marina. He's resigning after 3 years and 6 months of service.

Employment Details:

• Basic Salary: AED 12,000
• Service Duration: 3 years and 6 months (3.5 years)
• Contract Type:
• Unused Leave Days: 15 days
• Notice Period: Served fully (30 days)

Calculation Breakdown:Gratuity Calculation:

• Service: 3.5 years (all within first 5 years bracket)
• Daily wage: AED 12,000 ÷ 30 = AED 400
• Gratuity: 21 days × 3.5 years = 73.5 days
• Gratuity amount: 73.5 × AED 400 = AED 29,400

Leave Salary:

• 15 unused days × AED 400 = AED 6,000

Notice Period: AED 0 (served completely)

Total Settlement: AED 29,400 + AED 6,000 = AED 35,400

Ahmed will receive AED 35,400 as his final settlement, plus his last month's full salary and any other contractual benefits.

Example 2: HR Executive Termination After 7 Years

Scenario: Fatima, an HR Executive in a company in DIFC, is being terminated by her employer after 7 years of dedicated service.

Employment Details:

• Basic Salary: AED 9,000
• Service Duration: 7 years exactly
• Contract Type:
• Unused Leave Days: 22 days
• Notice Period: Not served by employer (30 days)

Calculation Breakdown:Gratuity Calculation:

• First 5 years: 21 days × 5 = 105 days
• Additional 2 years: 30 days × 2 = 60 days
• Total gratuity days: 105 + 60 = 165 days
• Daily wage: AED 9,000 ÷ 30 = AED 300
• Gratuity amount: 165 × AED 300 = AED 49,500

Leave Salary:

• 22 unused days × AED 300 = AED 6,600

Notice Period Compensation:

• 30 days not served by employer
• Full salary compensation: AED 9,000

Total Settlement: AED 49,500 + AED 6,600 + AED 9,000 = AED 65,100

Since Fatima was terminated by the employer, she receives full gratuity plus notice period compensation, totaling AED 65,100 in her final settlement.

Example 3: Accountant Resignation After 11 Months

Scenario: Ravi, an Accountant working in a trading company in Sharjah, decides to resign after 11 months due to personal reasons.

Employment Details:

• Basic Salary: AED 7,500
• Service Duration: 11 months
• Contract Type:
• Unused Leave Days: 18 days (earned during probation and service)
• Notice Period: 15 days not served

Calculation Breakdown:Gratuity: AED 0

No gratuity is payable as Ravi hasn't completed one full year of service.

Leave Salary:

• 18 unused days (accrued at 2 days per month)
• Daily wage: AED 7,500 ÷ 30 = AED 250
• Leave salary: 18 × AED 250 = AED 4,500

Notice Period Compensation:

• 15 days not served
• Compensation: 15 × AED 250 = AED 3,750

Total Settlement: AED 0 + AED 4,500 + AED 3,750 = AED 8,250

Ravi will receive AED 8,250 as his settlement. This example shows the importance of completing at least one year to qualify for gratuity benefits. Using an end of service gratuity calculator before resigning helps employees make informed decisions.

IMPORTANT INFORMATION

UAE Labour Law Updates (2026)

The UAE Labour Law has undergone significant changes. Under the new law, employees who resign after completing 1-5 years of service are now entitled to full gratuity, unlike the previous law where they received only partial gratuity. This applies to employees under the new labour law framework.

Special Considerations:

Unlimited vs Limited Contracts

Settlement calculations differ slightly between contract types. Limited contract employees may face different notice period requirements, typically as specified in their contract. For unlimited contracts, the standard 30-day notice period applies unless a longer period is specified in the contract (maximum 90 days).

Gratuity Deductions

Your gratuity may be reduced or forfeited in these situations:

• Termination due to serious misconduct or violation of company policy
• Unauthorized absence for more than 7 consecutive days or 20 non-consecutive days per year
• Conviction of a crime involving dishonesty or breach of trust
• Outstanding loans or advances from the employer (can be deducted from settlement)

Settlement Timeline

According to UAE Labour Law, employers must settle all dues within 14 days from the employee's last working day. Delays beyond this period may result in penalties for the employer. If you face settlement delays, you can file a complaint with MOHRE.

Common Mistakes to Avoid:

• Using total salary instead of basic salary - Gratuity is calculated only on basic salary, not on allowances or bonuses
• Not documenting unused leave - Keep records of your leave balance to ensure accurate payment
• Accepting settlement without verification - Always calculate independently before accepting employer's offer
• Not serving notice period - This can cost you 30-90 days of salary depending on your contract
• Ignoring loan deductions - Outstanding loans will be deducted; factor this into your planning

Expert Tips:

• Request a detailed settlement breakdown from your HR department in writing
• Use our comprehensive end of service calculator to verify calculations
• Consider timing your resignation after completing full years of service to maximize gratuity
• leave entitlements separately to ensure accuracy
• Keep copies of your employment contract, salary certificates, and leave records
• If settlement amount is disputed, file a complaint with MOHRE within one year