End-of-Service Gratuity Compared: UAE vs Saudi vs Qatar vs Kuwait vs Bahrain vs Oman

· 2 min read · Employment & Gratuity

If you're weighing job offers across different GCC countries, gratuity formulas are surprisingly different from one to the next — here's every country compared side by side.

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The six formulas at a glance

CountryFormulaCapResignation reduces it?
UAE21 days/yr (1-5), 30 days/yr (5+)2 years' salaryNo
Saudi Arabia0.5 mo/yr (1-5), 1 mo/yr (5+)None statedYes, under 10 yrs
Qatar3 weeks/yr, flatNone statedNo
Kuwait15 days/yr (1-5), 1 mo/yr (5+)1.5 years' wageYes, under 10 yrs
Bahrain0.5 mo/yr (1-3), 1 mo/yr (3+)None statedNo
Oman (expats)1 month/yr, flat (since Jul 2023)None statedNo

The most and least generous formulas

Oman's flat one-month-per-year rate (since its 2023 reform) and the UAE's 30-day rate after year 5 are among the most generous per-year rates in the region. Qatar's 3-weeks-per-year sits in the middle. What varies most, though, isn't the per-year rate — it's whether resigning costs you part of your gratuity, which only Saudi Arabia and Kuwait still apply.

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Why this matters when comparing offers

A slightly lower salary with a more generous, unreduced gratuity formula (UAE, Qatar, Bahrain, Oman) can outperform a higher salary under a country where resigning early forfeits a meaningful chunk of what you'd otherwise be owed (Saudi Arabia, Kuwait) — worth factoring in if you're comparing offers across GCC countries with a shorter expected tenure in mind.

Frequently asked questions

Which GCC country has the most generous gratuity formula?
Per-year rates are broadly similar (roughly a half-to-full month's wage per year once past the initial years), but Oman and the UAE's higher post-threshold rates, combined with no resignation penalty, make them comparatively generous for employees who might resign before very long tenure.
Does gratuity apply to government employees too?
These formulas generally apply to private-sector employees — public-sector employees are usually covered by separate government pension schemes instead.

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