What Is Included in Final Settlement in UAE? (2026 Guide)
Introduction
When leaving a job in the UAE, one of the most important things to understand is your end-of-service settlement. This final payment can include several components, and knowing what you are entitled to helps you avoid confusion and ensure you receive the correct amount.
In this guide, we break down exactly what is included in a final settlement in the UAE and how it is calculated.
What is a final settlement?
A final settlement is the total amount paid to an employee upon termination of employment. It includes all outstanding payments owed by the employer based on UAE labour law and the terms of the employment contract.
What is included in final settlement in UAE?
1.Gratuity (End-of-Service Benefit)
Gratuity is the main component of a final settlement.
Paid after completing at least 1 year of service
Based on your basic salary
Calculated as:
21 days per year (first 5 years)
30 days per year (after 5 years)
2. Unused Leave Salary
If you have unused annual leave, you are entitled to be paid for those days.
👉 Formula:
Daily salary × unused leave days
3. Notice Period Pay
If either you or your employer does not serve the full notice period, compensation may be included.
If employer terminates immediately → you may receive notice pay
If you leave early → it may be deducted
4. Pending Salary
Any unpaid salary up to your last working day must be included in your final settlement.
5. Other Possible Payments
Depending on your contract, your settlement may also include:
Bonuses (if applicable)
Commission
Reimbursements
What affects your final settlement?
Your total settlement depends on:
Length of service
Basic salary
Contract type
Whether you resigned or were terminated
Company policies
How to calculate your final settlement
Manually calculating your settlement can be confusing, especially when combining gratuity, leave salary, and notice pay.
👉 Use our End-of-Service Settlement Calculator to get an instant estimate based on your salary and employment details.
Important tips
Always check your employment contract
Ensure calculations are based on basic salary only
Confirm unused leave balance before leaving
Ask HR for a breakdown of your settlement
Final thoughts
Understanding your final settlement is essential when leaving a job in the UAE. Knowing what is included helps you plan financially and ensures you receive what you are entitled to.
