HR and payroll in the Gulf

How does end-of-service gratuity differ between Gulf countries?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

The rule differs by country: Saudi Arabia pays half a month for each of the first five years and then a month, the UAE 21 days and then 30 days of basic salary capped at two years, Kuwait 15 days and then a month capped at a year and a half, Qatar at least three weeks for each year, Bahrain half a month for each of the first three years and then a month, and Oman a month's wage for each year since July 2023.

Step by step

  1. 1

    Saudi Arabia

    Half a month's wage for each of the first five years and a month's wage for each year after that, on the last actual wage, with lower shares on resignation, under Articles 84 and 85 of the Labor Law.

  2. 2

    UAE

    21 days of basic salary for each of the first five years and 30 days after that, capped at two years of wages, with no reduction on resignation.

  3. 3

    Kuwait

    15 days for each of the first five years and a month after that, capped at 18 months of wages, on the wage including recurring allowances.

  4. 4

    Qatar

    At least three weeks of basic wage for each year, after one year of service.

  5. 5

    Bahrain

    Half a month for each of the first three years and a month after that, funded for expatriates through the Social Insurance Organization since March 2024.

  6. 6

    Oman

    One month's basic wage for each year since 26 July 2023, with the earlier period under the old law.

A common mistake

The biggest difference between countries is the wage the award is calculated on: basic salary only, or the wage including allowances. Settle that first before any comparison.

People also search for this question as
  • end of service comparison saudi uae qatar
  • gcc end of service laws