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End-of-service gratuity in the six Gulf countries, compared

Moving from Dubai to Riyadh, or Doha to Kuwait? The same years of work are worth different amounts in each country. Here is every rule side by side.

Gratuity rules side by side

CountryFormulaWage usedResigningLimit
UAE21 days a year for 5 years, then 30 (after 1 year)BasicNo cut*2 years of wage
Saudi ArabiaHalf a month a year for 5 years, then a monthActual wage (with allowances)Nothing under 2 years, 1/3 for 2-5, 2/3 for 5-10, all from 10None
QatarAt least 3 weeks a year (after 1 year)BasicNo cutNone
Kuwait15 days a year for 5 years, then a monthTotal wageNothing under 3 years, 1/2 for 3-5, 2/3 for 5-10, all from 1018 months of wage
OmanA month a year (new law, from 26 July 2023)BasicNo cutNone
BahrainHalf a month a year for 3 years, then a monthLast wageNo cutNone

*UAE: service under an old unlimited contract can still be worked out by the old rules (Article 68(3)).

How many months of wage you get

Counted in months of the wage each country uses, when the employer ends the contract:

After 5 years of service (months of wage)
UAE3.5 monthsSaudi2.5 monthsQatar3.5 monthsKuwait2.9 monthsOman5 monthsBahrain3.5 months
After 10 years of service (months of wage)
UAE8.5 monthsSaudi7.5 monthsQatar7 monthsKuwait7.9 monthsOman10 monthsBahrain8.5 months

Oman's figures assume all the service is after 26 July 2023. Nobody has 5 years under the new law yet, so for anyone with 5 or 10 years today the older years count at the old rate (half a month a year for the first 3 years) and the real figure is lower.

How these were worked out (a month = 30 days, Kuwait's courts use 26 working days for a day's wage):

Country5 years10 years
UAE21 × 5 = 105 days = 3.5 months105 + 30 × 5 = 255 days = 8.5 months
Saudi Arabia0.5 × 5 = 2.5 months2.5 + 5 = 7.5 months
Qatar (3 weeks)21 × 5 = 105 days = 3.5 months210 days = 7 months
Kuwait15 × 5 = 75 days ÷ 26 = 2.9 months2.9 + 5 = 7.9 months
Oman (all service after July 2023)5 months10 months
Bahrain0.5 × 3 + 2 = 3.5 months1.5 + 7 = 8.5 months

Months are not the same money everywhere: Saudi Arabia and Kuwait use the wage with allowances, the UAE, Qatar and Oman the basic wage, and Bahrain the last wage. A Saudi "half month" on a wage with housing can be more than a UAE "21 days" on a small basic.

What this comparison means for you

  • Resigning costs the most in Saudi Arabia and Kuwait. Check the 2, 3, 5 and 10-year steps before you hand in your letter.
  • The 5-year mark matters in the UAE, Saudi Arabia and Kuwait (in Bahrain it is 3 years). After it, each year is worth more.
  • Oman's new law is the most generous per year for service after 26 July 2023.

Work out your own

These are estimates under the published laws, not legal advice.

Questions people ask about gratuity in the Gulf

Which Gulf country pays the most gratuity? Per year of service, Oman's new law (a month of basic a year) for service after 26 July 2023. Over long service, the UAE and Bahrain reach the same 8.5 months at 10 years.

Where does resigning cost the most? Saudi Arabia and Kuwait. Under 2 years in Saudi Arabia and under 3 years in Kuwait you get nothing.

I moved from Dubai to Riyadh. Does my UAE service count? No. Each employer pays for your service with them, under the law of that country.

Is gratuity paid on basic or total salary? Basic in the UAE, Qatar and Oman. The wage with allowances in Saudi Arabia and Kuwait.

Sources