How we calculate — and where every number comes from
Every figure on GulfPaycheck is worked the way the law works, and tied to the exact article behind it. This page shows the method we use across all six countries and the source we verified each rule against — so you can check our working, not just trust it.
How we verify
Before any calculator goes live, we confirm its formula against the relevant labour law — the official text or a credible near-primary source — and record the law, the article, the exact figures, the wage base, the caps, the resignation rules and the date we checked them in an internal accuracy ledger. That "last verified" date is printed on every tool and repeated in the table below. When a law changes, updating the calculators is the work, and we log each change in the changelog rather than quietly editing numbers.
Where a country's primary text isn't cleanly available — Saudi Arabia's statute, or Kuwait's scanned ILO copy — we say so plainly in the notes below and rely on multiple convergent sources that quote the wording, rather than a single secondhand claim.
The six steps behind any GCC figure
The countries differ in their rates and wage bases, but the shape of the calculation is the same everywhere. This is the sequence our calculators follow:
- Confirm you're eligible. Most GCC countries require at least one continuous year of service before any end-of-service pay is due. Periods of unpaid leave usually don't count toward that year.
- Identify the legal wage base. Find which part of your salary the law uses. The UAE, Qatar and Oman calculate on basic salary only; Saudi Arabia and Kuwait use the fuller wage including fixed allowances. This single choice moves the result more than anything else.
- Count your net service. Measure your service to the day and subtract any unpaid leave. For Bahrain and Oman, split your service at the reform cut-off date, because the old and new rules each apply to the period they cover.
- Apply the country's accrual rate. Multiply your service by the statutory rate: 21 then 30 days a year in the UAE, half then one month a year in Saudi Arabia and Kuwait, a flat three weeks a year in Qatar, and the two-period hybrids in Bahrain and Oman.
- Apply any cap or resignation adjustment. Check the ceiling and the reason for leaving. The UAE caps gratuity at two years' pay and Kuwait at 18 months; Saudi Arabia and Kuwait reduce the award for resignation on a sliding scale, while the UAE, Qatar, Bahrain and Oman don't.
- Check it against your contract. The result is the legal minimum. Your contract or employer policy may pay more, so treat the figure as the floor for your conversation with HR, not the ceiling.
Governing law, by country
Each country's headline end-of-service rule, the articles it rests on, and the date we last verified it. Select a country for the full detail and its sources.
| Country | Governing law | Key articles | Last verified |
|---|---|---|---|
| UAE | Federal Decree-Law No. 33 of 2021 | Art. 51 (gratuity), Art. 51(6) (cap), Art. 1 (wage), Art. 44 (dismissal) | 14 June 2026 |
| Saudi Arabia | Labor Law, Royal Decree M/51 | Art. 84 (accrual), Art. 85 (resignation ladder), Art. 87 (exceptions), Art. 2 (wage) | 14 June 2026 |
| Qatar | Law No. 14 of 2004 | Art. 54 | 14 June 2026 |
| Kuwait | Law No. 6 of 2010 | Art. 51 (indemnity) | 14 June 2026 |
| Bahrain | Labour Law 36 of 2012, Art. 116 + Edict 109 of 2023 (SIO) | Art. 116 (pre-reform) + Edict 109/2023 (SIO, from 1 Mar 2024) | 14 June 2026 |
| Oman | Royal Decree 53/2023 (Labour Law), Art. 61 | Art. 61 (effective 31 Jul 2023) | 14 June 2026 |
Comparing the actual rates and payouts side by side? See the GCC gratuity comparison.
Country detail & sources
UAE
- Governing law
- Federal Decree-Law No. 33 of 2021
- Key articles
- Art. 51 (gratuity), Art. 51(6) (cap), Art. 1 (wage), Art. 44 (dismissal)
- Wage base
- Basic salary only — allowances excluded
- Accrual
- 21 days' basic pay per year (years 1–5), then 30 days per year
- Cap
- Two years' basic salary (Art. 51(6))
- Resignation
- No reduction — exit reason doesn't change the amount
- Last verified
- 14 June 2026
Sources: u.ae — official end-of-service benefits page (official) Federal Decree-Law 33/2021 — official text (PDF) (official) Al Tamimi & Co. — Article 44 no longer forfeits gratuity
Saudi Arabia
- Governing law
- Labor Law, Royal Decree M/51
- Key articles
- Art. 84 (accrual), Art. 85 (resignation ladder), Art. 87 (exceptions), Art. 2 (wage)
- Wage base
- Last wage — basic plus fixed regular allowances
- Accrual
- Half a month's wage per year (years 1–5), then one month per year
- Cap
- No statutory cap
- Resignation
- Reduction ladder — under 2 yrs nil, 2–5 ⅓, 5–10 ⅔, 10+ full
- Last verified
- 14 June 2026
The official HRSD statute URL is still being attached as the gold primary; figures are confirmed against convergent near-primary sources and the statutory Arabic text.
Sources: Saudi EOSB calculator — Art. 84/85/87 tiers law.shangiti.com — Art. 84/85 guide Jisr — resignation EOSB basis
Qatar
- Governing law
- Law No. 14 of 2004
- Key articles
- Art. 54
- Wage base
- Last basic wage — allowances excluded
- Accrual
- Three weeks' (21 days') basic wage per year, flat — no tiers
- Cap
- No statutory cap
- Resignation
- No reduction after one year
- Last verified
- 14 June 2026
Sources: ILO NATLEX — Law 14/2004 (English, PDF) (official) Doha Guides — gratuity calculation swan.qa — gratuity in Qatar
Kuwait
- Governing law
- Law No. 6 of 2010
- Key articles
- Art. 51 (indemnity)
- Wage base
- Total remuneration — basic plus fixed regular allowances
- Accrual
- 15 days' wage per year (years 1–5), then one month per year
- Cap
- 1.5 years' (18 months') wage
- Resignation
- Reduction ladder — under 3 yrs nil, 3–5 ½, 5–10 ⅔, 10+ full
- Last verified
- 14 June 2026
The official ILO/manpower PDF is a scanned image; the statutory wording (15-day/one-month wage, 18-month cap, resignation fractions) is confirmed via multiple convergent sources.
Sources: ILO NATLEX — Law 6/2010 (English, scanned) (official) Kuwait Up To Date — indemnity TenderScan — indemnity rights
Bahrain
- Governing law
- Labour Law 36 of 2012, Art. 116 + Edict 109 of 2023 (SIO)
- Key articles
- Art. 116 (pre-reform) + Edict 109/2023 (SIO, from 1 Mar 2024)
- Wage base
- Last basic wage plus social allowance
- Accrual
- Pre-2024: 15 days/yr (yrs 1–3) then 1 month/yr · From 1 Mar 2024: SIO 4.2% then 8.4%
- Cap
- No cap
- Resignation
- No reduction (except a misconduct dismissal)
- Last verified
- 14 June 2026
Two-period hybrid: service before 1 March 2024 uses the old employer-paid formula; service after is funded by monthly SIO contributions.
Sources: SIO — official end-of-service gratuity page (official) Al Tamimi & Co. — the new SIO gratuity system Ius Laboris — Bahrain EOS reform
Oman
- Governing law
- Royal Decree 53/2023 (Labour Law), Art. 61
- Key articles
- Art. 61 (effective 31 Jul 2023)
- Wage base
- Basic salary only — allowances excluded
- Accrual
- Pre-Aug 2023: 15 days/yr (yrs 1–3) then 1 month/yr · From 1 Aug 2023: 1 month/yr flat
- Cap
- No cap
- Resignation
- No reduction
- Last verified
- 14 June 2026
Two-period hybrid split at 31 July 2023. A Social Protection Fund savings system (RD 60/2025) replaces direct gratuity from 19 July 2027 — not active yet.
Sources: decree.om — Royal Decree 53/2023 (official) Oman Observer — how gratuity is calculated Muscat Daily — Ministry of Labour clarification
This is the method, not legal advice — your settlement still depends on your contract and employer policy. More about who we are and why accuracy is the brand is on the about page.