What Goes Into Your UAE Final Settlement?
| Component | How Calculated | Mandatory? |
|---|---|---|
| Gratuity (EOSB) | (Basic ÷ 30) × 21 or 30 days × Years | Yes (after 1 yr) |
| Accrued Leave Encashment | Daily wage × Unused leave days | Yes |
| Outstanding Salary | Pro-rated for partial month | Yes |
| Notice Pay (if waived) | Full salary for notice period | If applicable |
| Return Ticket Home | One-way economy ticket to home country | If no local transfer |
Payment Deadline
Under Article 53 of UAE Labour Law, all final settlement components must be paid within 14 days of your last working day. Late payment can lead to employer fines and MOHRE complaints being filed.UAE End of Service vs Gratuity — What's the Difference?
End of Service Benefit (EOSB) and gratuity are often used interchangeably, but technically:
- Gratuity = the statutory tip/reward based on the 21/30-day formula.
- EOSB (End of Service Benefits) = the full final settlement, which includes gratuity plus leave balance, salary arrears, and any other dues.
In casual usage — including on the MOHRE portal — both terms typically refer to the gratuity-only component.
Article 51 Explained Simply
Article 51 is the part of the UAE Labour Law that explains how end-of-service gratuity is earned. It is the rule behind the familiar formula: 21 days of basic pay for each of the first 5 years, then 30 days of basic pay for each additional year, subject to the usual cap.
In simple terms, Article 51 tells you how much gratuity is due. The 14-day rule comes from Article 53, which tells employers when the final settlement must be paid after the last working day.