End-of-Service Gratuity Across the Six GCC Countries
Six countries, six different rules: some use basic salary and some the full wage, and some cut the gratuity on resignation. This comparison puts them side by side.
The rules in brief
| Country | Rate per year | Wage base | Cap | Resignation |
|---|---|---|---|---|
| UAE | 21 days for the first 5 years, then 30 days | Last basic salary | Two years' pay | No reduction |
| Saudi Arabia | Half a month for the first 5 years, then a month | Last actual wage (with fixed allowances) | None | 0 → ⅓ → ⅔ → full (2/5/10 years) |
| Qatar | At least 21 days (3 weeks) | Last basic salary | None | No reduction |
| Kuwait | 15 days for the first 5 years, then a month | Last full wage with regular allowances | 18 months' pay | 0 → ½ → ⅔ → full (3/5/10 years) |
| Oman | A month per year since 31/7/2023 (before: 15 days for the first 3 years, then a month) | Last basic salary | None | No reduction |
| Bahrain | Half a month for the first 3 years, then a month | Last wage (basic plus social allowance) | None | No reduction |
Rules mainly for non-national private-sector employees; each country has exceptions for nationals and for financial free zones. Details are on each country's calculator page.
What the gratuity comes to in numbers
| Service | UAE | Saudi Arabia | Qatar | Kuwait | Oman | Bahrain |
|---|---|---|---|---|---|---|
| 1 year | 7,000 | 5,000 | 7,000 | 5,769 | 10,000 | 5,000 |
| 3 years 6 months | 24,500 | 17,500 | 24,500 | 20,192 | 35,000 | 20,000 |
| 5 years | 35,000 | 25,000 | 35,000 | 28,846 | 50,000 | 35,000 |
| 12 years | 105,000 | 95,000 | 84,000 | 98,846 | 120,000 | 105,000 |
| 25 years | 235,000 | 225,000 | 175,000 | 180,000 | 250,000 | 235,000 |
| Service | UAE | Saudi Arabia | Qatar | Kuwait | Oman | Bahrain |
|---|---|---|---|---|---|---|
| 1 year | 7,000 | 0 | 7,000 | 0 | 10,000 | 5,000 |
| 3 years 6 months | 24,500 | 5,833 | 24,500 | 10,096 | 35,000 | 20,000 |
| 5 years | 35,000 | 8,333 | 35,000 | 19,231 | 50,000 | 35,000 |
| 12 years | 105,000 | 95,000 | 84,000 | 98,846 | 120,000 | 105,000 |
| 25 years | 235,000 | 225,000 | 175,000 | 180,000 | 250,000 | 235,000 |
A fixed wage of 10,000 in each local currency, whole years, rounded. Kuwait divides the wage by 26, and Oman assumes all service is after 31 July 2023. The figures compare rules, not purchasing power, since the currencies differ.
Three observations
- The wage base changes everything: an employee whose basic is half the salary gets half as much in the UAE or Qatar as the same formula gives in Saudi Arabia or Kuwait.
- Early resignation is costly only in Saudi Arabia and Kuwait: nothing before 3 years in Kuwait, and before two years in Saudi Arabia.
- Systems are moving to savings funds: Bahrain since March 2024, Oman by July 2027 at the latest, the UAE has an optional alternative savings scheme, and Qatar is studying a similar system.
Prefer Arabic? Use the Arabic version.
Frequently asked questions
Which Gulf country pays the highest end-of-service gratuity?
Over the long run five countries converge on a month's wage per year after the first years: Oman from the first year since 2023, Bahrain after the third, and the UAE, Saudi Arabia and Kuwait after the fifth, while Qatar stays at 21 days. The bigger difference is the wage base: Saudi Arabia and Kuwait use the wage including fixed allowances, while the UAE, Qatar and Oman use basic salary only. Caps limit the gratuity in the UAE (two years' pay) and Kuwait (18 months).
In which countries does resignation reduce the gratuity?
Saudi Arabia (nothing before two years, then a third, then two thirds, full after 10 years) and Kuwait (nothing before 3 years, then half, then two thirds, full after 10 years). In the UAE, Qatar, Oman and Bahrain resignation does not reduce it.
Are the figures in the table accurate for my case?
The table is illustrative, using a fixed wage of 10,000 and whole years. For Oman it assumes all service is after 31 July 2023, and for Kuwait it divides the wage by 26. Use your country's calculator to enter your own dates and wage.
Sources
- UAE — Federal Decree-Law 33/2021 and its amendments, Article 51 (MOHRE)
- Saudi Arabia — Labour Law, Articles 84, 85 and 87 (HRDF, English)
- Qatar — Clyde & Co guide to staff demobilisation (Articles 54, 61 and 67)
- Kuwait — Law 6/2010 on labour in the private sector (Arabic)
- Oman — Labour Law, Royal Decree 53/2023 (Arabic)
- Bahrain — Prime Minister's Decision 109/2023 (Arabic)
Figures and formulas on this page were last reviewed on 2026-11-03.