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.
A proposed deduction needs an explanation and the applicable legal basis. Do not accept a single net figure without the gross entitlement and each adjustment shown separately.
Notice compensation can be payable
Federal Article 43 provides notice compensation when a party does not fulfil the required notice, subject to the facts and applicable exceptions. It uses the last wage, rather than only basic wage. The earlier statement that notice compensation is always unlawful was incorrect. Ask who owes it, how many days remain and whether notice was waived or an exception applies.
Gratuity deductions are controlled
Article 51(7) permits amounts due by law or judgment under the implementing rules. A company policy or your signature does not make every charge lawful. Ask for the debt, evidence, legal provision and any required procedural steps. Recruitment and employment costs must not simply be passed to the worker under Article 6.
Keep disputed amounts visible
Loans, overpayments, damage claims, training clauses and alleged notice debts require fact-specific review. Do not classify them all as valid or invalid without evidence. Keep notice compensation separate so it is not deducted twice. The checker labels entered deductions as proposed and does not approve them.
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.