End of service gratuity across the GCC in 2026
One table for end of service benefits in all six GCC states in 2026: accrual rate, wage base, cap and resignation treatment, plus one salary worked through each country.
Every GCC state owes an expatriate worker something when the contract ends, but the six formulas differ in wage base, accrual rate, cap and resignation treatment. This guide puts the six rule sets in one table, adds a short section per country, works the same salary through each and lists common mistakes. Figures were read on 4 September 2026 from the linked sources. It is a guide, not legal advice.
The six regimes in one table
| Country | Wage base | Rate in the first years | Rate in later years | Cap | Effect of resignation | Source |
|---|---|---|---|---|---|---|
| UAE | Last basic wage | 21 days per year, years 1 to 5 | 30 days per year from year 6 | Two years' wage | None | u.ae |
| Saudi Arabia | Last actual wage | Half a month per year, years 1 to 5 | One month per year from year 6 | None stated in Article 84 | Nil under 2 years, one third at 2 to 5, two thirds over 5 and under 10, full at 10 | HRSD Labor Law |
| Kuwait | Wage (monthly paid) | 15 days per year, years 1 to 5 | One month per year from year 6 | One and a half years' wage | Unlimited contract: nil under 3 years, half at 3 to 5, two thirds at 5 to 10, full at 10 | Law 6 of 2010 |
| Qatar | Last basic wage | At least three weeks per year | Same | None | None | Law 14 of 2004 |
| Bahrain | Contract wage plus any social allowance | Employer pays SIO 4.2% monthly, years 1 to 3 | 8.4% monthly from year 4 | SIO pays no more than contributions received | Paid by SIO from contributions | SIO Decision 109 of 2023 |
| Oman | Final basic wage | One month per year from year 1 | Same | None | None | Royal Decree 53 of 2023 |
The UAE and Qatar require one completed year before anything is owed. Bahrain and Oman are mid-transition, so earlier hires carry service under two formulas.
United Arab Emirates: 21 and 30 days on basic wage, two year cap
Article 51 of Federal Decree-Law 33 of 2021 pays 21 days of basic wage per year for the first five years and 30 days after, on the last basic wage; allowances are excluded. Nothing is due before one year of continuous service, fractions are then pro rata, unpaid absence days are left out, the total cannot exceed two years' wage, and everything must be settled within 14 days of the contract ending, per u.ae. Since 2 February 2022 there is no reduction for resignation (Morgan Lewis). The law states days of wage, not a divisor; monthly basic divided by 30 is the convention. Our UAE gratuity calculator shows the working.
Saudi Arabia: half a month then a full month, resignation thirds
Article 84 of the Saudi Labor Law awards half a month's wage per year for the first five years and one month after, on the last wage, pro rata. Article 2 defines wage as the actual wage, basic plus due increments such as commissions and allowances, and a month as 30 days unless the contract says otherwise; Article 86 lets the parties agree to leave commissions and similar variable components out of the wage used for the award. Article 85 cuts the award on resignation: nothing under two years, one third at two to five, two thirds over five and under ten, full at ten. Article 88 requires settlement within one week when the employer ends the contract and within two weeks when the worker does. Royal Decree M/44, published on 23 August 2024, amended the law with effect from 19 February 2025, per Clyde and Co; the amendment summaries we read do not list Articles 84 or 85 among the changed provisions. The Saudi end of service calculator shows both cases.
Kuwait: 15 days then a month, 18 month cap, resignation halves and thirds
Articles 51 to 53 of Law 6 of 2010 give monthly paid workers 15 days' wage per year for the first five years and one month after, capped at one and a half years' wage; daily, weekly, hourly and piece rate workers earn 10 then 15 days, capped at one year. Article 52 lists the cases that earn the full indemnity, among them employer termination and expiry of a fixed term. Resigning from an unlimited contract pays nothing under three years, half at three to under five, two thirds at five to under ten, full at ten. The law states no daily divisor; the 26 day month many Kuwaiti calculators use is convention. Calculator coming; no date yet.
Qatar: at least three weeks per year on basic wage, no cap
Article 54 of Law 14 of 2004 entitles a worker with one year or more of service to a gratuity agreed between the parties but not less than three weeks' remuneration per year, pro rata, on the last basic wage, which Article 1(10) defines as the pay for the work including only the annual allowance and no other payment. The gratuity is payable at the date of termination. There is no cap and no resignation reduction, the law fixes no daily or weekly divisor, and sums owed may be deducted. Calculator coming; no date yet.
Bahrain: a monthly SIO contribution replaced the lump sum in March 2024
Article 116 of Labour Law 36 of 2012 owes a worker outside the Social Insurance Law half a month's wage per year for the first three years and one month after. For service from 1 March 2024, Decision 109 of 2023 replaces that with a monthly employer contribution to the Social Insurance Organisation of 4.2% of wages for the worker's first three years and 8.4% thereafter, where wage means the amount in the employment contract plus any increases and social allowance; the SIO then pays the non-Bahraini's end of service remuneration, based on the last remuneration and not exceeding the contributions received. Service before 1 March 2024 stays a lump sum under Article 116, so an earlier hire has both a provision and a monthly cash cost. Calculator coming; no date yet.
Oman: one month per year since July 2023, savings system from July 2027
Article 61 of the Labour Law under Royal Decree 53 of 2023, in force from 31 July 2023, gives workers outside the Social Protection Law not less than one basic wage per year of service, pro rata, on the final basic wage, with no cap, no resignation reduction, and earlier service counted. The Ministry of Labour has clarified, per the Oman Observer on 6 August 2026, that years before the law follow the old formula of 15 days per year for three years then one month per year, all on the last basic wage; treat that as ministry guidance. Royal Decree 60 of 2025 moved the deadline for the expatriate savings system from 19 July 2026 to 19 July 2027, per DLA Piper; the Oman Observer reports the employer contribution as 9% of monthly basic wage. Calculator coming; no date yet.
Nationals are usually on a pension scheme instead
Emiratis in the private sector are on GPSSA pension legislation rather than gratuity. For those who joined the labour market on or after 31 October 2023, Federal Decree-Law 57 of 2023 sets the contribution at 11% employee and 15% employer, with the government paying 2.5% on the employer's behalf for pensionable salaries under AED 20,000; earlier joiners stay on Federal Law 7 of 1999, per u.ae. Kuwaitis fall under the Social Security Law with the employer paying any net difference, Bahrainis are on SIO pension contributions, and Oman's Article 61 covers only workers outside the Social Protection Law. Saudi Article 84 applies to every worker, with GOSI a separate contribution (see the GOSI calculator).
The same employee in six countries: a worked comparison
Assume 10,000 a month basic in local currency, exactly seven years, employer termination, no allowances (so the Saudi actual wage equals basic), a 30 day month for daily rates and all service under the current rule. Illustrative only; 10,000 suits the arithmetic, not every currency.
| Country | Working | Result |
|---|---|---|
| UAE | 5 x 21 + 2 x 30 = 165 days; 165 / 30 x 10,000 | AED 55,000; the 240,000 cap is not reached |
| Saudi Arabia | 5 x 5,000 + 2 x 10,000 | SAR 45,000; SAR 30,000 on resignation (two thirds) |
| Kuwait | 5 x 15 / 30 x 10,000 + 2 x 10,000 | KWD 45,000; KWD 48,846 if the first five years use a 26 day divisor (15 / 26 of a month each) and later years stay a full month; the 180,000 cap is not reached |
| Qatar | 21 weeks; weekly wage 10,000 x 12 / 52 = 2,307.69 | QAR 48,462 statutory minimum; QAR 49,000 if three weeks is read as 21 days on a 30 day month |
| Bahrain | 4.2% x 10,000 x 36 months + 8.4% x 10,000 x 48 months | BHD 55,440 paid to SIO over seven years, if all service is from 1 March 2024 |
| Oman | 7 x 10,000 | OMR 70,000, if all service is from 31 July 2023 |
A seven year leaver in 2026 cannot have all of their service under the current Bahraini or Omani rule, so earlier years follow the older formula in each.
Common mistakes
- Using total pay where the law says basic (UAE, Qatar, Oman), or basic where it says actual wage (Saudi Arabia).
- Applying the UAE resignation reduction that was abolished on 2 February 2022.
- Ignoring the caps: two years' wage in the UAE, eighteen months in Kuwait.
- Booking Bahrain service after 1 March 2024 as a provision instead of a monthly SIO cost.
- Computing every Omani year at one month when some predate 31 July 2023.
- Finding the liability at exit instead of accruing it monthly, as our GCC payroll compliance guide describes.
Frequently asked questions
Does resigning reduce the amount? Not in the UAE, Qatar or Oman. Saudi Arabia pays one third at two to five years and two thirds over five and under ten; Kuwait pays nothing under three years, half at three to under five and two thirds at five to under ten on an unlimited contract.
Is there a maximum? Two years' wage in the UAE and one and a half years' wage in Kuwait. Saudi Article 84, Qatari Article 54 and Omani Article 61 state none. Bahrain's SIO pays no more than the contributions received.
When must it be paid? The UAE requires settlement within 14 days of the contract ending. Saudi Article 88 gives one week when the employer ends the contract and two weeks when the worker does. Qatar's Article 54 makes the gratuity payable at the date of termination. This guide does not cite a deadline for Kuwait, Bahrain or Oman.
Which country accrues the most per year? Oman, at one month's basic wage from year one. Saudi Arabia and Kuwait reach a month only from year six, the UAE reaches 30 days from year six, Bahrain's employer contribution steps up to 8.4% of wage from year four, and Qatar's floor is three weeks.
Sources
- u.ae, end of service benefits in the private sector
- Morgan Lewis, UAE updates federal labour law
- u.ae, pensions and social security for UAE citizens
- HRSD, Saudi Labor Law, English text
- Clyde and Co, KSA labour law amendments
- ILO NATLEX, Kuwait Law 6 of 2010
- UNODC SHERLOC, Qatar Law 14 of 2004 PDF (Al Meezan text)
- Al Meezan, Qatar Law 14 of 2004, Article 54
- Bahrain SIO, Decision 109 of 2023
- Bahrain SIO, end of service gratuity for non-Bahrainis
- LMRA, Bahrain Labour Law 36 of 2012
- EY, Bahrain end of service benefit system from 1 March 2024
- decree.om, Royal Decree 53 of 2023
- Oman Observer, ministry clarifies end of service gratuity
- Oman Observer, expat savings system deferred to July 2027
- DLA Piper, Oman Royal Decree 60 of 2025
A payroll that spans the Gulf has to carry the right rule set per employee, in Arabic and English, and accrue the liability monthly rather than discover it at exit. The Axion People box runs payroll with end of service gratuity and GOSI calculated per country, WPS files and payslips in Arabic and English, and is priced per box with unlimited users. For teams paid in more than one currency, our bilingual, multi-currency ERP guide covers the rest.
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