End-of-Service Gratuity in the GCC 2026: Rules and Examples

What is end-of-service gratuity and who gets it?

In most Gulf countries, expats do not join the state pension system. Instead, labour laws make the employer pay a lump sum when the job ends, and it grows with years of service.

Nationals are a different case. They usually get a pension or benefits from their own country's social insurance body, not the labour law gratuity. So this guide covers expats in the private sector.

Three questions set the amount in each country:

Which wage is it based on? Basic pay only, or pay with allowances?
How many days for each year? And does that change after a certain number of years?
Is it cut if you resign? And by how much?

Quick comparison: the same salary in 6 countries

The table below works out the gratuity for an expat with a basic salary of 10,000 and a full salary of 14,000 in each country's local currency, in three cases. The figures come straight from each country's calculator:

Country	5 years, resigned	5 years, terminated	10 years, terminated
Saudi Arabia	11,667	35,000	105,000
United Arab Emirates	35,000	35,000	85,000
Qatar	35,000	35,000	70,000
Kuwait	23,333	35,000	105,000
Oman	50,000	50,000	100,000
Bahrain	35,000	35,000	85,000

Basic salary of 10,000 in each country's local currency (total pay 14,000), for an expat. Amounts are in local currency.

The figures are in local currency, so do not compare 10,000 Kuwaiti dinars with 10,000 dirhams. The table is there to compare the rules: which country uses full pay, which cuts the gratuity when you resign, and where the amount changes after 5 years.

Saudi Arabia: half a month, then a month, and resigning cuts the amount

Article 84 of the Saudi Labour Law sets the gratuity: half a month's wage for each of the first five years, and a month's wage for each year after that, based on the last wage. Part years count pro rata.

Article 85 cuts it if the worker resigns:

Under 2 years: nothing.
2 to 5 years: one third of the gratuity.
More than 5 and under 10 years: two thirds.
10 years or more: the full amount.

Article 87 gives the full gratuity despite resigning in some cases, including force majeure, and a female worker who ends her contract within 6 months of her marriage contract or within 3 months of giving birth. These articles did not change in the Labour Law amendments that took effect in February 2025.

Example: a last wage of 8,000 riyals and 7 years of service. Full gratuity = (5 × 4,000) + (2 × 8,000) = 36,000 riyals. If the worker resigns: two thirds = 24,000 riyals. Try your own numbers in the Saudi end-of-service calculator.

UAE: 21 days of basic pay, then 30 days

Article 51 of Federal Decree-Law No. 33 of 2021 gives a worker who has completed at least one year of continuous service 21 days' wage for each of the first five years, and 30 days' wage for each year after that. It is based on the last basic wage, not allowances, and the total cannot exceed two years' wage. The article does not treat resigning differently from the employer ending the contract.

Example: a basic wage of 10,000 dirhams and 7 years. Daily wage = 10,000 ÷ 30 = 333.33 dirhams.

First 5 years: 5 × 21 × 333.33 = 35,000 dirhams.
The next 2 years: 2 × 30 × 333.33 = 20,000 dirhams.
Total: 55,000 dirhams.

If the full salary were 18,000 dirhams with a basic of only 10,000, the gratuity would still be 55,000. That is why the salary split in your contract matters. Work it out in the UAE end-of-service calculator.

Qatar and Kuwait

Qatar: Article 54 of Labour Law No. 14 of 2004 gives anyone who has completed at least one year of service a gratuity agreed by both sides, but not less than 3 weeks' wage for each year, based on the last basic wage. The employer may deduct from it any amount the worker owes them. The calculator applies the legal minimum, so if your contract gives more, the contract applies. See the Qatar calculator.

Kuwait: Private Sector Labour Law No. 6 of 2010 bases the gratuity on the wage, makes it larger after the fifth year, caps it, and cuts it on resignation depending on length of service. The exact figures for each case are in the table above and in the Kuwait calculator, along with the calculator's note on how the daily wage is worked out.

Bahrain: the gratuity has moved to the social insurance organisation

Since 1 March 2024, employers in Bahrain no longer pay the end-of-service gratuity to expats directly for new periods of service. Instead, they pay a monthly contribution to the Social Insurance Organisation (SIO):

4.2% of the wage for each of the first three years.
8.4% after that.

When the job ends, the SIO pays the gratuity as a lump sum: 15 days' wage for each of the first three years, and a month's wage for each year after that, based on basic pay plus the social allowance. The employer is still responsible for service before March 2024.

In practice, this means the gratuity no longer depends on the company being able to pay when you leave. See the Bahrain calculator.

Oman: from an employer gratuity to a savings scheme

Article 61 of Oman's Labour Law (Royal Decree 53/2023) gives non-Omanis a gratuity of at least one full month's basic wage for each year of service, based on the last basic wage. But the article only applies until the savings scheme starts.

The Social Protection Law (Royal Decree 52/2023) set up a compulsory savings scheme for non-Omanis, at 9% of basic wage each month, to replace the gratuity. The start date is set by the board of the Social Protection Fund. Royal Decree 60/2025 extended the latest start date from 3 to 4 years after the law was issued, so July 2027 at the latest. Once it starts, the employer remains responsible for the gratuity for earlier service.

Until the scheme starts, the Oman calculator works out the gratuity using the Article 61 rule.

Tips before you sign or resign

Read the salary split: in the UAE, Qatar and Oman the gratuity is based on basic pay. A low basic means a low gratuity.
Do the maths before you resign: in Saudi Arabia and Kuwait, one more month of service can move you into a different band.
Keep your contracts and payslips: the last wage is the basis, and disputes are usually about how it is defined.
The gratuity is not a pension: compare it with what would build up in a pension scheme in another country. Read the guide to moving from the Gulf to Europe or Canada.

The calculators apply the general legal rule. Your employment contract or company rules may give you more, and disputes are settled by the competent authorities in each country.

Frequently asked questions

How do I calculate end-of-service gratuity in Saudi Arabia?

Half a month's wage for each of the first 5 years, and a month's wage for each year after that, based on the last wage. If you resign: nothing before 2 years, one third from 2 to 5 years, two thirds from 5 to under 10 years, and the full amount after 10 years.

Is UAE end-of-service gratuity based on basic or full salary?

On the last basic wage. 21 days for each of the first 5 years, and 30 days for each year after that, up to a maximum of two years' wage, for anyone who has completed one year of continuous service.

Do I get end-of-service gratuity if I resign in Saudi Arabia before 2 years?

No, under Article 85 of the Labour Law, except in the cases listed in Article 87, such as force majeure, or a female worker who ends her contract within 6 months of her marriage or 3 months of giving birth.

Who pays end-of-service gratuity to expats in Bahrain now?

Since 1 March 2024, the Social Insurance Organisation (SIO) pays it, after the employer pays a monthly contribution of 4.2% of the wage in the first 3 years and 8.4% after that. The employer pays for service before March 2024.

What is Oman's savings scheme?

A scheme under the Social Protection Law that replaces end-of-service gratuity for non-Omanis, at 9% of basic wage each month. It starts on a date set by the Social Protection Fund, July 2027 at the latest.

How much is end-of-service gratuity in Qatar?

At least 3 weeks' basic wage for each year, for anyone who has completed one year of service or more, under Article 54 of the Labour Law. Your contract may give more.

Do GCC nationals get end-of-service gratuity?

Nationals usually get their benefits from their own country's social insurance or pension system, not from the labour law gratuity. The rules differ between countries, so check each country's calculator.

Sources

This guide is general information, not tax advice. Rules change; check with the authority or a qualified adviser before you act. How we work.

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End-of-service gratuity in the GCC: how each country calculates it