Android add spacing below last element in recyclerview with gridlayoutmanager

The solution to this problem lies in overrinding the SpanSizeLookup of GridLayoutManager.

You have to make changes to the GridlayoutManager in the Activity or Fragment where you are inflating the RecylerView.

protected void onCreate(Bundle savedInstanceState) {
    super.onCreate(savedInstanceState);
    //your code 
    recyclerView.addItemDecoration(new PhotoGridMarginDecoration(context));

    // SPAN_COUNT is the number of columns in the Grid View
    GridLayoutManager gridLayoutManager = new GridLayoutManager(context, SPAN_COUNT);

    // With the help of this method you can set span for every type of view
    gridLayoutManager.setSpanSizeLookup(new GridLayoutManager.SpanSizeLookup() {
        @Override
        public int getSpanSize(int position) {
            if (list.get(position).getType() == TYPE_HEADER) {
                // Will consume the whole width
                return gridLayoutManager.getSpanCount();
            } else if (list.get(position).getType() == TYPE_CONTENT) {
                // will consume only one part of the SPAN_COUNT
                return 1;
            } else if(list.get(position).getType() == TYPE_FOOTER) {
                // Will consume the whole width
                // Will take care of spaces to be left,
                // if the number of views in a row is not equal to 4
                return gridLayoutManager.getSpanCount();
            }
            return gridLayoutManager.getSpanCount();
        }
    });
    recyclerView.setLayoutManager(gridLayoutManager);
}

Should use Decoration In Recycler View for bottom margin in case of the last item only

recyclerView.addItemDecoration(MemberItemDecoration())

public class MemberItemDecoration extends RecyclerView.ItemDecoration {

    @Override
    public void getItemOffsets(Rect outRect, View view, RecyclerView parent, RecyclerView.State state) {
        // only for the last one
        if (parent.getChildAdapterPosition(view) == parent.getAdapter().getItemCount() - 1) {
            outRect.bottom = 50/* set your margin here */;
        }
    }
}

Just add a padding and set android:clipToPadding="false"

<RecyclerView
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    android:paddingBottom="8dp"
    android:clipToPadding="false" />

Thanks to this wonderful answer!