A Full UAE Final Settlement, Worked Line by Line
October 23, 2026
Here's a complete final settlement for one scenario: AED 9,000 basic salary, 4 years 6 months of service, resigning with a 30-day required notice but only serving 20 days, 12 days of unused annual leave, and 10 days of unpaid wages for the final partial month.
Skip the math and get your answer instantly:
Open the UAE Final Settlement Calculator →Line by Line
Daily basic wage: 9,000 ÷ 30 = AED 300.
- Gratuity (4 full years + 6-month partial year, all at the 21-day rate): (4 × 21 + 10.5) × 300 = 94.5 × 300 = AED 28,350
- Leave encashment: 12 days × AED 300 = AED 3,600
- Notice shortfall: 10 days not served × AED 300 = AED 3,000 (deducted)
- Unpaid wages: 10 days × AED 300 = AED 3,000 (added)
- Final settlement: 28,350 + 3,600 + 3,000 − 3,000 = AED 31,950
Why the Partial Year Uses 10.5 Days
The gratuity entitlement for a partial final year is pro-rated: 6 months is half of a year, so half of the 21-day annual rate (10.5 days) applies for that final partial year, on top of the 4 full years already calculated at the full 21 days each.
Frequently Asked Questions
What's the total final settlement in this example?
AED 31,950, combining gratuity (AED 28,350), leave encashment (AED 3,600), and unpaid wages (AED 3,000), minus the notice shortfall deduction (AED 3,000).
Why is the notice shortfall subtracted, not added?
Because it represents days of required notice that weren't actually served — it reduces the settlement rather than adding to it.
How is the partial final year of gratuity calculated?
Pro-rated by the fraction of the year served — 6 months is half a year, so half of the 21-day annual rate applies for that partial period.
Does unpaid wages use basic salary or full salary?
Full agreed salary for days actually worked, which can differ from the basic-salary-only base used for gratuity and leave encashment.