GCC end-of-service gratuity, compared
How end-of-service pay works across all six Gulf states — the rate, the wage it's based on, any cap, how resignation is treated, and the recent system changes. Every figure is cited to its law and dated; the calculators do the maths for your own numbers.
| Country | Rate per year | Wage base | Max cap | Resignation | Recent change |
|---|---|---|---|---|---|
| UAE | 21 days/yr (yrs 1–5), then 30 days/yr | Basic only | 2 years' basic | No reduction | Optional Savings Scheme |
| Saudi Arabia | ½ month/yr (yrs 1–5), then 1 month/yr | Basic + regular allowances | None | Ladder: <2y nil · 2–5y ⅓ · 5–10y ⅔ · ≥10y full | — |
| Qatar | 21 days/yr (flat, all years) | Basic only | None | No reduction | — |
| Kuwait | ½ month/yr (yrs 1–5), then 1 month/yr | Total remuneration | 18 months | Ladder: <3y nil · 3–5y ½ · 5–10y ⅔ · ≥10y full | — |
| Bahrain | 15 days/yr (yrs 1–3), then 1 month/yr | Basic + social allowance | None | No reduction | SIO-funded from 1 Mar 2024 (hybrid) |
| Oman | 1 month/yr (from Aug 2023); old 15-day/1-month before | Basic only | None | No reduction | Hybrid (2023); SPF savings fund 19 Jul 2027 |
All entries last verified 14 June 2026. Eligibility, the governing law, and links are in each country's section below.
What the table shows
Three patterns stand out. First, only Saudi Arabia and Kuwait cut gratuity when you resign — the other four pay the same whether you leave or are let go. Second, the wage base differs: the UAE, Qatar and Oman pay on basic salary alone, while Saudi, Kuwait and Bahrain include allowances, which makes a real difference on the same headline salary. Third, two countries are mid-transition — Bahrain (to SIO funding) and Oman (a rate rise now, a savings fund in 2027) — so anyone whose service spans those dates has a two-period calculation.
UAE
- Rate: 21 days/yr (yrs 1–5), then 30 days/yr
- Wage base: Basic only
- Cap: 2 years' basic
- Resignation: No reduction
- Eligibility: 1 year
- Recent change: Optional Savings Scheme
- Law: Federal Decree-Law 33/2021, Art. 51
Saudi Arabia
- Rate: ½ month/yr (yrs 1–5), then 1 month/yr
- Wage base: Basic + regular allowances
- Cap: None
- Resignation: Ladder: <2y nil · 2–5y ⅓ · 5–10y ⅔ · ≥10y full
- Eligibility: From day 1 (termination)
- Recent change: —
- Law: Labor Law M/51, Art. 84–85
Open the Saudi Arabia calculator → · Read the Saudi Arabia rules →
Qatar
- Rate: 21 days/yr (flat, all years)
- Wage base: Basic only
- Cap: None
- Resignation: No reduction
- Eligibility: 1 year
- Recent change: —
- Law: Law 14/2004, Art. 54
Kuwait
- Rate: ½ month/yr (yrs 1–5), then 1 month/yr
- Wage base: Total remuneration
- Cap: 18 months
- Resignation: Ladder: <3y nil · 3–5y ½ · 5–10y ⅔ · ≥10y full
- Eligibility: From day 1 (termination)
- Recent change: —
- Law: Law 6/2010, Art. 51
Bahrain
- Rate: 15 days/yr (yrs 1–3), then 1 month/yr
- Wage base: Basic + social allowance
- Cap: None
- Resignation: No reduction
- Eligibility: 1 year
- Recent change: SIO-funded from 1 Mar 2024 (hybrid)
- Law: Law 36/2012 Art. 116 + Edict 109/2023
Oman
- Rate: 1 month/yr (from Aug 2023); old 15-day/1-month before
- Wage base: Basic only
- Cap: None
- Resignation: No reduction
- Eligibility: From year 1
- Recent change: Hybrid (2023); SPF savings fund 19 Jul 2027
- Law: Royal Decree 53/2023, Art. 61
Frequently asked
Which Gulf country has the most generous end-of-service?
It depends on tenure. For long service, Oman, Saudi Arabia, Bahrain and Kuwait all reach about a month per year and several have no cap, so they can exceed the UAE and Qatar, which are capped or flat. For short-to-mid tenure, the UAE's 21-then-30-day structure and Qatar's flat 21 days are competitive. The wage base matters too — Saudi and Kuwait pay on a broader wage than the UAE's basic-only.
Which countries reduce gratuity if you resign?
Only Saudi Arabia (Article 85) and Kuwait (Article 51) reduce end-of-service on resignation, on a sliding scale by years of service. The UAE, Qatar, Bahrain and Oman pay the full amount whether you resign or are terminated.
Which is calculated on basic salary only?
The UAE, Qatar and Oman use basic salary only. Saudi Arabia uses basic plus regular allowances, Kuwait uses total remuneration, and Bahrain uses basic plus social allowance.
Which countries changed their system recently?
Bahrain moved to monthly SIO contributions for service from 1 March 2024, and Oman raised its rate to one month a year from 31 July 2023 (with a savings fund to follow in July 2027). Both create a two-period calculation for anyone whose service spans the change.