What a final settlement is
When your job in the UAE ends - whether you resign or the employer ends the contract - the employer must pay all your remaining dues in one final settlement. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021) it must be paid within 14 days after the contract ends.
- 1Gratuity (after 1 year)
- 2Pay for unused annual leave
- 3Salary for days not paid yet
- 4Other dues in your contract
- 5Minus what you owe
The four parts - and which salary each one uses
| Part | Rule | Salary used |
|---|---|---|
| End-of-service gratuity | 21 days a year for the first 5 years, 30 days after; only after 1 year; at most 2 years of wage | Basic |
| Unused annual leave | Leave days earned but not taken | Basic |
| Salary still owed | Days you worked in the last month that were not paid | Full wage (basic + allowances) |
| Other dues | Anything your contract promises (notice pay, ticket, bonus) | As in the contract |
The difference between basic and full wage matters: gratuity and unused leave are worked out on the basic salary only, but the days you worked are paid at your full wage.
A full worked example
Ahmed worked 6 years in Dubai. His basic salary is AED 5,000 and his full wage AED 8,000. He has 10 days of leave left, worked 15 days of his last month without pay, and still owes the company AED 1,000 from an advance.
| Part | Working | Amount (AED) |
|---|---|---|
| Gratuity | 5,000 ÷ 30 × (21 × 5 + 30 × 1) | 22,500 |
| Unused leave | 5,000 ÷ 30 × 10 days | 1,667 |
| Salary owed | 8,000 ÷ 30 × 15 days | 4,000 |
| Less: advance | -1,000 | |
| Final settlement | 27,167 |
The gratuity is by far the biggest part - which is why the date you leave, and whether you have passed one year or five years, matters so much.
What can be deducted
The employer can deduct amounts you really owe - for example an advance or a loan - under the conditions of the law and its Executive Regulations. A deduction must be explained; you can ask for the breakdown in writing.
If you are not paid
If the final settlement is not paid within 14 days, you can complain to the Ministry of Human Resources and Emiratisation (MOHRE) through its app, website or call centre (600 590 000).
Work out your own final settlement →
Sources
- Federal Decree-Law No. 33 of 2021, Articles 29 and 51, as explained by Gulf News on gratuity and Gulf News on unused leave.
- This guide is general information, checked in October 2026. Your employer, MOHRE or a court gives the final figure.