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.
Your final settlement should show each amount owed and each proposed adjustment. Gratuity is only one part; check earned salary, leave and notice before comparing the net payment.
Different components use different wage bases
Federal Article 29(9) addresses payment for accrued unused annual leave on basic wage. Article 43 bases notice compensation on the last wage. Earned salary, overtime, expenses and contractual bonuses need their own records. A bonus or air ticket is not automatically owed in every case.
Payment deadline
Article 53 requires payment of wages and other contractual or statutory entitlements within 14 days from the end of the contract. Use the contract end date, which can differ from the last day you physically attend work. A fund or another jurisdiction may have different procedures.
Illustrative itemised settlement
For six qualifying years at AED 10,000 basic and AED 15,000 total monthly wage: gratuity AED 45,000; ten unused leave days AED 3,333.33; earned unpaid pay AED 5,000; thirty days’ notice compensation owed by the employer AED 15,000. Total AED 68,333.33 before other dues or lawful deductions. Notice already paid as earned salary must not be counted again.
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.