End of Service Gratuity in the Gulf 2026: UAE, Saudi & Qatar Calculations Explained

End of service gratuity is a lump sum paid when your Gulf employment ends, calculated mainly on your basic salary and years of service. In the UAE you typically earn 21 days of basic pay per year for the first five years and 30 days per year after that, capped at two years of salary. Saudi Arabia typically pays half a month per year for the first five years and a full month per year after that, while Qatar guarantees at least three weeks per year. Your contract, basic salary split and reason for leaving all affect the final figure, so calculate it yourself before you sign any settlement.

Under current UAE labour law, full-time employees earn gratuity of 21 calendar days of basic salary for each year of service in the first five years, and 30 calendar days per year for each additional year. The total is capped at two years of basic salary, and service is usually counted in completed years with pro-rata credit for partial years.

• Example: basic salary AED 6,000, seven years of service. First five years: 5 x 21 days = 105 days. Next two years: 2 x 30 days = 60 days. Total 165 days, which is 5.5 months of basic pay, or about AED 33,000.

• Unlimited versus limited contracts: older distinctions between contract types no longer drive the calculation the way they once did, but always check which version of the law applied to your contract period.

• Alternative scheme: some UAE employers, especially in free zones and government-linked entities, use an end-of-service savings scheme instead of the standard gratuity formula, so your contract may specify a different mechanism.

Saudi labour law provides an end-of-service award of half a month's wage for each of the first five years of service and one full month's wage for each year after that, with the final wage used as the base. The award is calculated on the last basic wage plus regular allowances that form part of the wage definition, which is broader than the UAE's basic-only approach in some cases.

• Example: final monthly wage SAR 5,000, eight years of service. First five years: 5 x 0.5 = 2.5 months. Next three years: 3 x 1 = 3 months. Total 5.5 months, or SAR 27,500.

• Resignation: if you resign before completing the relevant service thresholds, the award can be reduced under Saudi rules, so the reason for leaving and the length of service matter more here than in the UAE.

• Unpaid leave: periods of unpaid leave are generally excluded from the service calculation, which can lower the total.

Qatar's labour law requires an end-of-service benefit of at least three weeks of basic wage for each year of service, unless the contract provides a higher amount. Many employers in Qatar pay a full month per year by contract, so your contract figure often exceeds the legal minimum, and the contract figure is the one that binds.

• Example at the legal minimum: basic wage QAR 4,000, six years of service. 6 x 3 weeks = 18 weeks, which is about 4.5 months, or roughly QAR 18,000.

• Contract uplift: if your contract says one month per year, that higher rate applies instead of the three-week minimum.

• Domestic workers: Qatar's domestic worker law has its own end-of-service provisions, so household staff should not assume the standard worker formula applies to them.

Four traps reduce payouts. First, a low basic salary split: employers sometimes load allowances and keep basic low, which directly shrinks gratuity. Second, breaks in service: resigning and rejoining can restart the clock in some systems. Third, deductions: employers may deduct proven debts or damages, but deductions must be lawful and documented, not invented at exit. Fourth, signing a settlement too fast: once you sign a full and final settlement, challenging the figure becomes much harder.

• Check your basic salary on every payslip, not just your offer letter.

• Keep every contract amendment, because a renewed contract can reset or preserve service depending on its wording.

• Never sign a blank or undated settlement form.

• Ask for an itemised settlement showing gratuity, unused leave and notice pay separately.

UAE: 21 days per year for the first five years, 30 days per year after, capped at two years of basic salary, calculated on basic salary. Saudi Arabia: half a month per year for the first five years, one month per year after, calculated on final wage, with resignation reductions possible. Qatar: minimum three weeks per year, often one month by contract, calculated on basic wage. The pattern is consistent: longer service is rewarded more generously everywhere, and the basic salary definition is the single biggest lever on your payout. Before you accept any Gulf offer, ask what basic salary the gratuity will be based on, because that number matters more at exit than the headline total package suggests.

A good Gulf contract protects you at exit as well as at entry, and that starts with choosing the right employer. Apply for Gulf roles on SteadStaff and compare offers on basic salary, contract type and end-of-service terms, not just the headline monthly figure. Apply on SteadStaff today, and when you receive an offer, check the gratuity clause before you sign so your years of service are properly rewarded.