Correction, 7 October 2026: This guide has been revised to remove unsupported salary-band calculations, automatic old/new-law splits and assumptions that DIFC and ADGM share the same benefits system.
Starting work before 2 February 2022 does not, by itself, justify splitting a current settlement into old-law resignation fractions and new-law portions.
Service continuity matters
Identify the actual contract ending now, its governing law and the uninterrupted service recognised by the employer. Renewals do not automatically reset service. The UAE Government contract guide explains that extensions and renewals are added when calculating end-of-service benefits.
When historical review is necessary
A contract that actually ended under the old law, an already settled employment period, a change of employer or a special transition arrangement needs its own review. Preserve prior settlement statements and ask for the legal reason for any proposed split. Do not apply old resignation penalties automatically to service before February 2022 in an ongoing current employment relationship.
The standard federal calculation
For a foreign full-time employee under federal private-sector law, Article 51 uses the last basic wage: 21 days for each of the first five qualifying years, then 30 days for each additional year. After one year of continuous service, fractions of a year are counted proportionately. Unpaid absence is excluded from the gratuity service calculation. Housing and transport allowances are not part of the basic-wage calculation. The statutory ceiling is two years’ wage; keep the distinction between basic wage and total contractual wage clear.
Check which rules apply before using a calculator
DIFC’s DEWS or another qualifying scheme, ADGM employment regulations and the federal alternative Savings Scheme have distinct rules. Part-time work needs its contractual hours ratio; domestic, government and pension-covered employment are outside this standard calculation. Use the free-zone comparison to identify your arrangement.
Compare an itemised breakdown
Use the Final Settlement Checker for a standard federal monthly-paid case. Ask HR for the wage basis, qualifying service, unused leave, notice position, earned pay and each proposed deduction. A calculator estimate is a starting point for questions, not a decision on your legal entitlement.
Reviewed 7 October 2026. General information, not personalised legal advice. If the contract, service continuity, salary change or deduction is disputed, confirm the facts with the relevant authority or a qualified employment adviser.