Last updated: July 22, 2026 | Educational guide | Not legal advice
Quick Answer
UAE end-of-service benefits are payments an employee may receive when employment ends. For many private-sector foreign employees, the item most people need to estimate first is gratuity, commonly calculated from basic salary and length of service.
The UAE Government portal says private-sector end-of-service gratuity is calculated on basic salary and excludes allowances such as housing and transportation. That is why your basic salary figure matters more than the total monthly package for a simple gratuity estimate.
Common Gratuity Estimate Bands
For a simple full-time private-sector estimate, start with these common bands and then verify against official guidance and your own documents:
- Less than 1 year of service: usually no gratuity.
- More than 1 year and up to 5 years: 21 days of basic salary for each year of service.
- More than 5 years: 21 days per year for the first 5 years, then 30 days per additional year.
Special cases can change the result, including unpaid leave, deductions, part-time contracts, free-zone rules, savings schemes, disputes, alternative end-of-service schemes, and contract-specific terms.
Example
If your basic salary is AED 10,000 and you worked 3 full years, a simple estimate is 21 days per year. Daily basic salary is AED 10,000 divided by 30, or AED 333.33. Three years at 21 days per year equals 63 days, so the rough gratuity estimate is AED 21,000.
Documents to Check Before You Accept
- Employment contract and any amendments.
- Salary certificate showing basic salary and allowances separately.
- Payslips or WPS salary records.
- Joining date and last working date.
- Resignation or termination letter.
- Leave balance and unpaid leave records.
- Employer final settlement statement.
Before You Challenge a Settlement
Calculate your own estimate first, then ask the employer for a written breakdown. Compare basic salary, service dates, leave deductions, notice treatment, unused leave, and any amounts the employer says are owed. If the numbers are materially different, keep the discussion written and check official guidance before escalating.
Put Each Benefit Line in Its Own Row
A final settlement is easier to review when every amount has its own evidence row. Do not mix gratuity, leave salary, notice treatment, reimbursements, loans, advances, and deductions into one total before checking the source documents.
- Gratuity: basic salary, joining date, last working date, and unpaid-leave records.
- Unpaid salary: final payroll period, payslip, WPS record where available, and payment date.
- Unused leave salary: HR leave balance, leave approvals, and the daily-salary figure used.
- Notice-period line: resignation or termination notice, last working day, and written employer explanation.
- Deductions: loan agreement, advance record, equipment note, or contract clause beside each deduction.
For a deeper line-by-line check, use the UAE final settlement calculator checklist, leave salary checklist, and deductions review checklist.
Official Source Check
Use this page as a worksheet, then compare the estimate with current official guidance and your own employment records before relying on a final-settlement number.
Source links checked: July 22, 2026
Quick FAQ
What are UAE end-of-service benefits?
End-of-service benefits are payments that may be due when employment ends. For many UAE private-sector foreign employees, the main item to estimate is gratuity based on basic salary and length of service.
Is UAE gratuity based on basic salary or total salary?
UAE Government guidance says end-of-service gratuity for private-sector workers is calculated on basic salary and excludes allowances such as housing and transport.
What records should I check before accepting a final settlement?
Check the employment contract, salary certificate, basic salary evidence, joining date, last working date, unpaid leave records, resignation or termination notice, leave balance, deductions, and the employer final-settlement breakdown.
How should I organize end-of-service benefit lines before questioning them?
Put gratuity, unpaid salary, unused leave salary, notice treatment, reimbursements, loans, advances, and deductions into separate rows, then attach the document or written explanation for each line.
Can this calculator replace official advice?
No. It is an educational estimate only. Check official UAE guidance, your contract, and qualified advice for disputes, free-zone questions, unusual contracts, or formal action.