UAE Notice Pay Example: Buying Out a 60-Day Notice Period

October 23, 2026

A specific worked example for a contract with a 60-day notice requirement: AED 13,200 monthly basic salary, employee and employer agree to a full buyout instead of working the notice period.

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The Calculation

Daily basic wage: 13,200 ÷ 30 = AED 440.

  • Full 60-day buyout: 60 × 440 = AED 26,400

Partial Buyout Scenario

If instead the employee works 20 of the 60 days and buys out the remaining 40, only those 40 days are paid: 40 × 440 = AED 17,600 — the buyout calculation applies only to the days not actually worked, not the full notice period length regardless of partial service.

Frequently Asked Questions

What's the full buyout cost for a 60-day notice period at AED 13,200 basic salary?

AED 26,400 (60 days × AED 440 daily wage).

What if only part of the notice period is bought out?

Only the unworked days are paid for — in this example, buying out 40 of the 60 days costs AED 17,600.

Does this use basic or gross salary?

Basic salary, consistent with other UAE settlement calculations.

Is a partial buyout always an option?

This depends on mutual agreement between employer and employee — it's not an automatic entitlement for either side.