GCC gratuity compared: six statutory floors
End-of-service pay is written into each country’s labour law, and the formulas are not the same.
This page puts the six GCC statutory floors next to each other so you can see which rule applies to you before you argue a number with HR. Every figure here is a statutory minimum floor and an estimate: your contract, or a company policy, can be more generous, never less. Reviewed 29 August 2026.
The six floors at a glance
Statutory minimum floors as written in each labour law. Estimates for planning.
| Country | Legal basis | Accrual floor | Wage used | Cap / notes |
|---|---|---|---|---|
| UAE | Federal Decree-Law 33/2021, Art. 51 | 21 days’ pay per year for the first 5 years, then 30 days’ pay per year | Basic salary | Total gratuity capped at 2 years’ total remuneration; 1 year minimum service |
| Qatar | Labour Law 14/2004, Art. 54 | Flat 21 days’ pay per year of service, all years | Basic salary | No UAE-style 21/30 split; 1 year minimum service |
| Saudi Arabia | Labour Law, Art. 84 and 85 | Half month per year for the first 5 years, then one month per year | Actual (total) wage | Resignation tiers under Art. 85: under 2 years nil, 2 to under 5 one third, 5 to under 10 two thirds, 10+ full |
| Kuwait | Labour Law 6/2010 | 15 days’ pay per year for the first 5 years, then one month per year (monthly-paid staff) | Remuneration as defined by the law | Resignation tiers reduce entitlement; total capped at 1.5 years’ pay |
| Oman | Labour Law (Royal Decree 53/2023), Art. 61 | One month’s basic wage per year of service | Basic wage | Applies unless the worker is covered by Social Protection contributions; service before 31 July 2023 is settled on the old rule |
| Bahrain | Labour Law 36/2012 (as amended) | Non-Bahraini staff: half month per year for the first 3 years, then one month per year | Basic wage plus regular allowances | Bahrainis are covered by SIO insurance contributions instead |
Who this affects
Private-sector expatriate employees leaving a job in the GCC, and anyone comparing an offer in one country against a resignation in another. If you are a national of the country you work in, social insurance usually replaces or reduces the gratuity, so the floor above may not be what you receive.
How to use it
Find your country row, note the wage base (basic versus total), then run the country calculator with your own numbers. The two mistakes that cost the most money are using total salary where the law says basic, and assuming Qatar follows the UAE 21/30 split. It does not: Qatar is flat 21 days for every year.
Why the numbers differ
Each law was drafted separately and reformed at different times. The UAE and Kuwait step the accrual up after five years, Saudi steps up after five years but also scales resignation, Oman moved to a one-month-per-year basis in 2023 alongside Social Protection, and Bahrain steps up after three years for non-nationals. None of that is interchangeable, which is why one “GCC gratuity formula” does not exist.
Common questions
Short answers for using this page responsibly.
Is Qatar’s gratuity the same as the UAE’s?
No. The UAE pays 21 days per year for the first five years and 30 days per year after that. Qatar’s Art. 54 floor is a flat 21 days per year for all years of service. Treating them as identical over-estimates a long Qatar service.
Which countries reduce gratuity if I resign?
Saudi Arabia and Kuwait apply resignation tiers, so a resignation before a service threshold pays a fraction of the accrued amount. The UAE, since Decree-Law 33/2021, does not reduce gratuity for a lawful resignation.
Basic salary or total salary?
The UAE, Oman and Bahrain floors are built on basic wage (Bahrain adds regular allowances); Saudi uses the actual wage, which is closer to total pay. The UAE also caps the whole gratuity at two years’ total remuneration.
Are these figures guaranteed?
No. They are statutory floors and the outputs are estimates for planning. Your contract, unpaid leave, disputed dates and any deductions change the final settlement. Confirm the wording in the law that applies to you, or take advice, before you sign a settlement.
Scope & review note
How these floors are maintained
Each row is the statutory minimum as written in that country's labour law and is kept in step with the country calculator it links to. Rules can change, so open the official source and check the page review date before you act. Estimate only.
Rolling one country into a single figure: the Qatar final settlement planner adds Art. 54 gratuity, unused leave and unserved notice, and the UAE final settlement planner does the same for mainland UAE. Estimates only.