Gratuity rules side by side
| Country | Formula | Wage used | Resigning | Limit |
|---|---|---|---|---|
| UAE | 21 days a year for 5 years, then 30 (after 1 year) | Basic | No cut* | 2 years of wage |
| Saudi Arabia | Half a month a year for 5 years, then a month | Actual wage (with allowances) | Nothing under 2 years, 1/3 for 2-5, 2/3 for 5-10, all from 10 | None |
| Qatar | At least 3 weeks a year (after 1 year) | Basic | No cut | None |
| Kuwait | 15 days a year for 5 years, then a month | Total wage | Nothing under 3 years, 1/2 for 3-5, 2/3 for 5-10, all from 10 | 18 months of wage |
| Oman | A month a year (new law, from 26 July 2023) | Basic | No cut | None |
| Bahrain | Half a month a year for 3 years, then a month | Last wage | No cut | None |
*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:
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):
| Country | 5 years | 10 years |
|---|---|---|
| UAE | 21 × 5 = 105 days = 3.5 months | 105 + 30 × 5 = 255 days = 8.5 months |
| Saudi Arabia | 0.5 × 5 = 2.5 months | 2.5 + 5 = 7.5 months |
| Qatar (3 weeks) | 21 × 5 = 105 days = 3.5 months | 210 days = 7 months |
| Kuwait | 15 × 5 = 75 days ÷ 26 = 2.9 months | 2.9 + 5 = 7.9 months |
| Oman (all service after July 2023) | 5 months | 10 months |
| Bahrain | 0.5 × 3 + 2 = 3.5 months | 1.5 + 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
- UAE gratuity calculator
- Saudi end of service calculator
- Qatar gratuity calculator
- Kuwait indemnity calculator
- Oman gratuity calculator
- Bahrain leaving indemnity calculator
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.