GCC End-of-Service Center: Compare All Six Systems Side by Side
Every Gulf country set its own end-of-service gratuity system — with completely different rates, thresholds, and caps. If you've worked or plan to work in more than one GCC country, this center lays out the fundamental differences between all of them in one place, with a precise calculator for each system.
Guide steps
21 days rising to 30 after 5 years, with a gradual reduction on resignation before 10 years.
Roughly the same rate as Saudi Arabia, but with no resignation reduction since 2021, and a maximum cap of two years.
A flat rate of 21 days for all years with no tiering, and no maximum cap on the gratuity.
One of the few countries that still reduces the gratuity for early resignation, with a cap of a year and a half.
A shorter tiering threshold (3 years instead of 5), and exclusively for expatriate workers.
Roughly the same formula as Oman, but funded through a cumulative monthly fund instead of a lump-sum payment.
The three fundamental differences you need to notice
1) The threshold at which the rate rises: Saudi Arabia, the UAE, and Kuwait use 5 years as the turning point, while Oman and Bahrain use only 3 years — and Qatar doesn't tier the gratuity at all (even though its annual leave does tier). 2) The effect of resignation: the UAE, Qatar, and Oman (and Bahrain most likely) don't reduce the gratuity after completing one year of service, while Saudi Arabia and Kuwait still apply an explicit gradual reduction based on years of service at resignation. 3) The calculation basis: some countries (Saudi Arabia, Kuwait, Bahrain) include fixed allowances in the calculation, while others (UAE, Qatar, Oman) calculate on the basic salary only — a difference that can change your final gratuity by tens of thousands of riyals if your allowances are high.
Frequently asked questions
Which Gulf country is the most generous for end-of-service gratuity?
There's no single answer that fits every case — it depends on your years of service and the reason employment ended. Generally: the UAE, Qatar, and Oman don't reduce the gratuity on resignation (after completing a year), while Saudi Arabia and Kuwait reduce it gradually. The UAE has a higher cap (two years) than Kuwait (a year and a half), while Qatar and Oman have no cap at all.
Which country calculates on the basic salary only, and which includes allowances?
The UAE and Qatar calculate on the basic salary only. Saudi Arabia, Kuwait, and Bahrain include fixed allowances (or the social allowance in Bahrain's case). Oman also calculates on the basic salary only. This is a fundamental difference that can noticeably change the final amount.
Does moving from one GCC country to another automatically settle my gratuity in the first one?
There is no unified system that transfers your gratuity balance between GCC countries. When your employment in any country ends, your gratuity is settled under that country's local system entirely independently, and you start from zero in the new country.
Why does the tiering threshold differ between countries (5 years vs. 3 years)?
Because each Gulf country sets its own independent labor legislation by its own decree or law. Saudi Arabia, the UAE, and Kuwait chose 5 years as the turning point from half a month's pay to a full month's pay, while Oman and Bahrain chose 3 years. There is no binding unified coordination among GCC countries on this specific detail.
Do these calculators cover government-sector employees?
No, all six calculators are built on the private-sector labor laws of each country. The government sector is subject to entirely separate civil service or pension systems that differ fundamentally from these formulas.