Calculating Unpaid Wages in a UAE Final Settlement
October 23, 2026
Unpaid wages cover any days an employee has already worked but hasn't yet been paid for — typically the final partial pay period before exit. Unlike gratuity and leave encashment, this component is calculated on the full agreed monthly salary, not basic salary alone, since it represents pay actually earned under the employment contract.
Skip the math and get your answer instantly:
Open the UAE Final Settlement Calculator →Worked Example
Full monthly salary (basic + allowances): AED 14,000. Days worked in the final, unpaid month: 18 days out of 30.
- Daily full salary rate: 14,000 ÷ 30 = AED 466.67
- Unpaid wages owed: 18 × 466.67 = AED 8,400
Why Full Salary, Not Basic Salary
Gratuity and leave encashment use basic salary specifically because those are the entitlements Article 51 and related guidance define that way. Unpaid wages for days actually worked are simply the pay the employee earned under their employment contract — which is the full agreed salary, including any allowances.
Frequently Asked Questions
Does unpaid wages use basic salary or full salary?
Full agreed monthly salary, including allowances — different from gratuity and leave encashment, which use basic salary only.
What's owed for 18 unpaid days at a AED 14,000 full monthly salary?
AED 8,400 (18 days × AED 466.67 daily rate).
What counts as 'unpaid wages' in a final settlement?
Pay for any days already worked that hasn't yet been processed or paid, typically the final partial pay period before exit.
Why the different salary base from gratuity?
Because unpaid wages represent pay already earned under the contract, while gratuity is a specific statutory entitlement defined on basic salary only.