Method and sources
How we calculate end of service across the GCC
Full transparency on the formula, wage basis and legal source behind every calculator on this site. Reviewed July 2026.
Our approach
Each calculator applies the statutory formula from the country whose law governs your job. We use your exact service dates to the day, apply the correct wage basis for that country, and account for rules that change the result, such as resignation tiers and legal caps. Where a law changed partway through recent years, such as Oman in 2023 and Bahrain in 2024, we split your service and apply the right rate to each period.
The figures are estimates for guidance. A final settlement can differ because of contract terms, employer records, unpaid leave or disputed wage components. Always confirm the number with your employer or a licensed advisor.
🇸🇦 Saudi Arabia
Legal basis: Saudi Labor Law, Articles 84 and 85.
Wage basis: Use your last actual wage, which includes basic salary plus continuous allowances such as housing and transport.
Formula and rules:
- Half a month of wage per year for the first five years.
- One month of wage per year beyond five years.
- Resignation: nothing under two years, one third from two to five, two thirds from five to ten, full at ten years or more.
- No statutory maximum.
Official sources:
🇦🇪 the United Arab Emirates
Legal basis: Federal Decree Law No. 33 of 2021, Article 51.
Wage basis: Use your basic salary only. Housing, transport and other allowances are not included in the UAE gratuity.
Formula and rules:
- 21 days of basic wage per year for the first five years.
- 30 days of basic wage per year beyond five years.
- Daily wage is monthly basic divided by 30. Minimum one year of service.
- Resignation is treated the same as termination. Total capped at two years of basic wage.
Official sources:
🇶🇦 Qatar
Legal basis: Qatar Labour Law No. 14 of 2004, Article 54.
Wage basis: Use your last basic wage. Allowances are excluded unless your contract states otherwise.
Formula and rules:
- Three weeks, which is 21 days, of basic wage per year for all years.
- Daily wage is monthly basic divided by 30. Minimum one year of service.
- Resignation with notice does not reduce the gratuity. A contract may grant more.
Official sources:
🇰🇼 Kuwait
Legal basis: Kuwait Labour Law No. 6 of 2010, Articles 51 to 53.
Wage basis: Use your last drawn wage, including regular allowances that form part of your pay.
Formula and rules:
- 15 days of wage per year for the first five years, then one month per year beyond five.
- Daily wage is monthly wage divided by 26. Total capped at 18 months of wage.
- Resignation on indefinite contracts: nothing under three years, one half from three to five, two thirds from five to ten, full at ten years or more.
Official sources:
🇴🇲 Oman
Legal basis: Oman Labour Law, Royal Decree 53 of 2023, Article 61.
Wage basis: Use your last basic salary. Allowances are excluded from the Oman gratuity.
Formula and rules:
- One month of basic salary per year for service from 1 August 2023.
- Earlier service: 15 days per year for the first three years, then one month per year.
- Resignation does not reduce the gratuity. Applies to expatriate workers.
Official sources:
🇧🇭 Bahrain
Legal basis: Leaving Indemnity Resolution No. 109 of 2023 (SIO scheme).
Wage basis: Use the monthly wage reported to the Social Insurance Organisation.
Formula and rules:
- Half a month of wage per year for the first three years, then one month per year.
- Funded since March 2024 through monthly SIO contributions of 4.2 then 8.4 percent.
- Service before March 2024 is paid directly by the employer. Applies to expatriate workers.
Official sources:
Updates
Labour law in the Gulf changes, and we track it. When a rate, wage basis or scheme changes, we update the affected calculator and note it here. If you spot something out of date, please tell us.