Gulf End-of-Service Gratuity Calculator

About the Gulf End-of-Service Gratuity Calculator

Choose the country, enter your dates of service and your last monthly wage, and the calculator applies that country’s private-sector labour law: the UAE’s 21 and 30 days’ basic wage a year with its two-year cap, Saudi Arabia’s half-month and full-month award with the resignation fractions, Qatar’s three weeks a year, Oman’s month a year for non-Omani workers, Bahrain’s half-month and month a year with the split between the employer and the Social Insurance Organization since March 2024, and Kuwait’s fifteen days and a month a year, capped at eighteen months’ wage.

You see the amount, every step of the sum and the article it comes from, with a link to the official text. For a contract with better terms, or another country, use Custom formula. The rules were checked against the official sources.

United Arab Emirates

Federal Decree-Law No. 33 of 2021, Articles 51–53, as set out on the government portal u.ae:

• At least one year of continuous service; then 21 days’ basic wage for each of the first five years and 30 days’ for each further year, with fractions of a year paid pro rata.
• Worked out on the last basic wage — housing, transport and other allowances are left out. Days of unpaid absence do not count as service.
• The total may not exceed two years’ wage. Part-time workers get the full-time amount × their contracted hours ÷ full-time hours (Cabinet Resolution No. 1 of 2022, Article 30).
• Paid with the other dues within 14 days of the end of the contract; the employer may deduct amounts the worker owes.
• Employers can instead enrol staff in the alternative end-of-service savings scheme (Cabinet Resolution No. 96 of 2023); the fund then pays the contributions and returns for that period. UAE nationals are covered by the pension legislation.

Saudi Arabia

Labor Law (text on the MHRSD website), Articles 84–88:

• Half a month’s wage for each of the first five years and a month’s wage for each later year, pro rata for fractions, on the last wage — the actual wage, that is basic wage plus allowances (Article 2). Commission and similar variable pay may be left out by agreement (Article 86).
• Resignation (Article 85): nothing before two years; one third after 2 to 5 years; two thirds after more than 5 and less than 10 years; the full award from 10 years.
• The full award when the worker leaves because of force majeure, or a female worker ends the contract within six months of her marriage contract or three months of giving birth (Article 87); a worker who leaves without notice under Article 81 keeps all statutory rights. Dismissal in the cases of Article 80 is without an award.
• Dues are paid within one week, or two weeks when the worker ended the contract (Article 88).

Qatar

Labour Law No. 14 of 2004 (Al Meezan), Article 54: after one year or more, a gratuity agreed by the parties of not less than three weeks’ wage for every year, pro rata for fractions, on the last basic wage, paid at the end of employment. The employer may deduct what the worker owes. Article 61 lists the cases of dismissal without the gratuity; under Article 56 a more generous employer retirement scheme replaces it.

Oman

Labour Law issued by Royal Decree 53/2023 (English translation), Article 61: workers who do not benefit from the Social Protection Law — in practice non-Omani workers — get not less than one month’s basic wage for each year of service, pro rata for fractions, on the final basic wage. The law defines a year as 365 days and a month as 30 days (Article 1). Article 40 lists the dismissals without the gratuity. Article 61 applies until the Social Protection Fund’s savings system for non-Omani workers comes into force.

Bahrain

Labour Law No. 36 of 2012 (LMRA English translation), Article 116: workers not covered by the Social Insurance Law get a leaving indemnity of half a month’s wage for each of the first three years and a month’s wage for each later year, pro rata, on the most recent basic wage plus the social allowance (Article 47). Since 1 March 2024 the Social Insurance Organization pays the indemnity for service from that date, from the employer’s monthly contributions of 4.2% (first three years) and 8.4% (later years) — Decision No. 109 of 2023; service before 1 March 2024 stays with the employer.

Kuwait

Law No. 6 of 2010 on work in the private sector (Arabic text published by the Ministry of Justice), Articles 51–53:

• Workers paid by the month: fifteen days’ wage for each of the first five years and a month’s wage for each later year, pro rata for fractions, at most a year and a half’s wage (Article 51(b)). Workers paid by the day, week, hour or piece get ten and fifteen days, at most a year’s wage (Article 51(a)) — use Custom formula for them.
• The wage is the last wage with the allowances and benefits paid regularly (Articles 55 and 62). Debts to the employer are deducted; for workers under the Social Insurance Law the employer pays the difference over its contributions (Article 51).
• The full award when the employer ends the contract, a fixed-term contract ends without renewal, in the cases of Articles 48–50, or when a female worker ends the contract within a year of her marriage (Article 52).
• Resignation from an open-ended contract (Article 53): half after 3 to 5 years, two thirds after 5 to 10 years, the full award from 10 years — nothing before three years. Dismissal under Article 41(a) is without the award; under Article 41(b) the award is kept.

Daily wage: ÷ 30 or × 12 ÷ 365?

The UAE, Qatari and Kuwaiti rules give the gratuity in days or weeks of wage but do not say how a monthly salary becomes a daily wage. Dividing by 30 gives a day’s wage of 10,000 ÷ 30 = 333.33; using calendar days, 10,000 × 12 ÷ 365 = 328.77 — about 1.4% less. For Kuwait you can also divide by 26 working days (10,000 ÷ 26 = 384.62). Choose the method your employer or the authority uses; the calculator shows the difference.

Limitations

• Private-sector labour laws only. Government employees, domestic workers and nationals covered by a pension or social insurance scheme follow other rules.
• The UAE formula is the Federal Decree-Law’s. The DIFC and ADGM financial free zones have their own employment laws — check those if you work there.
• Service is treated as continuous apart from the unpaid days you enter. Breaks, transfers and earlier settlements need checking against the law.
• Kuwait is worked out from Law No. 6 of 2010 as published by the Ministry of Justice, for workers paid by the month. Other countries are not built in — use Custom formula with the figures from the law or your contract.
• An estimate for information, not legal advice. Labour courts and the ministries decide disputes.

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