End of Service Calculator
Calculate your GCC end of service gratuity using the latest labour law rules for UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Oman. Handles resignation tiers, the Oman RD 53/2023 split calculation, and Kuwait's ÷26 daily rate.
UAE End of Service — Federal Decree-Law 33/2021
The new UAE Labour Law, effective February 2022, guarantees all employees a gratuity of 21 working days per year for the first 5 years and 30 calendar days per year for each subsequent year. Calculated on basic salary only. The maximum benefit is capped at 2 years of total basic salary. Crucially, both resignation and termination are treated identically — there is no longer any penalty for employees who choose to leave voluntarily.
Saudi Arabia End of Service — Article 84 & 85
Saudi Labour Law grants employees half a month (15 days) per year for the first 5 years and a full month (30 days) per year thereafter, based on the "actual wage" — which includes basic salary plus all fixed allowances such as housing and transport. For employees who resign, Article 85 applies a multiplier: zero entitlement for less than 2 years, one-third for 2–5 years, two-thirds for 5–10 years, and full entitlement for 10 years or more.
Bahrain Gratuity — Law No. 36/2012 and SIO Reform
Bahrain's Labour Law provides ½ month (15 days) per year for years 1–3 and a full month (30 days) per year from year 4 onward. Both resignation and termination receive the same entitlement with no reduction. From March 2024, as part of a Social Insurance Organisation (SIO) reform, the end-of-service accruals for non-Bahraini employees on new contracts are funded through monthly SIO contributions rather than a lump sum paid on termination.
Qatar Gratuity — Law No. 14/2004
Qatar's Labour Law provides a flat 21 working days (3 weeks) per year of service with no upper cap. Entitlement is the same for both resignation and termination after at least one year of service. The daily rate is calculated as monthly basic salary ÷ 30. Qatar has no personal income tax, so the full benefit amount is received tax-free.
Kuwait End of Service — Labour Law No. 6/2010
Kuwait's Labour Law calculates indemnity at 15 days per year for the first 5 years and 30 days per year after 5 years, subject to a maximum of 1.5 years' total salary. A key distinction: Kuwait uses salary ÷ 26 working days per month to determine the daily rate (not ÷ 30 calendar days), as specified in Article 55. For resignation, tiers apply: no entitlement below 3 years; 50% for 3–5 years; two-thirds for 5–10 years; full entitlement after 10 years.
Oman End of Service — Royal Decree 53/2023
Oman's Royal Decree 53/2023, effective July 31, 2023, simplified the gratuity formula to a flat 1 month (30 days) per year for all years of service. Previously, under the old Royal Decree 35/2003, the formula was 15 days per year for the first 3 years and 30 days per year thereafter. Employees with employment spans that cross July 31, 2023 receive a split calculation: the old formula for pre-transition service and the flat 30-days-per-year rate for service after that date.
Frequently Asked Questions
How is UAE end of service calculated?
Under UAE Federal Decree-Law 33/2021 (effective February 2022): 21 working days per year for the first 5 years, and 30 calendar days per year for each year beyond 5. Calculated on basic salary only. The maximum benefit cannot exceed 2 years of total basic salary. Both resignation and termination receive the same entitlement.
Do I get gratuity if I resign in UAE?
Yes. Since the new UAE Labour Law came into effect in February 2022, resigned employees receive the same gratuity as terminated employees. There is no reduction for voluntary resignation — 21 days per year for the first 5 years and 30 days per year beyond 5 years.
What is the Saudi Arabia end of service formula?
Saudi Labour Law Art. 84: half a month (15 days) per year for the first 5 years, and a full month (30 days) per year after 5 years — based on the "actual wage" (basic salary plus all fixed allowances such as housing and transport). For resignation (Art. 85): nothing for < 2 years; 1/3 for 2–5 years; 2/3 for 5–10 years; full entitlement after 10 years.
How is Bahrain end of service calculated?
Bahrain Labour Law No. 36/2012: ½ month (15 days) per year for years 1–3, and 1 month (30 days) per year from year 4 onward. There is no reduction for resignation — both resignation and termination receive the same entitlement. From March 2024, non-Bahraini employees' new service accruals are handled via SIO monthly contributions rather than a lump-sum payment.
How is Qatar gratuity calculated?
Qatar Labour Law No. 14/2004, Article 54: a flat 21 days (3 weeks) per year of service, with no cap. Both resignation and termination receive the same entitlement. Calculated on basic salary only. A minimum of 1 year of service is required.
How is Kuwait end of service (indemnity) calculated?
Kuwait Labour Law No. 6/2010: 15 days per year for the first 5 years, and 30 days per year after 5 years. The daily rate uses salary ÷ 26 working days per month (not ÷ 30 calendar days). Cap: 1.5 years' total salary. For resignation: nothing for < 3 years; 50% for 3–5 years; 2/3 for 5–10 years; full entitlement after 10 years.
How does Oman end of service work after RD 53/2023?
Oman Royal Decree 53/2023 (effective July 31, 2023) changed the formula to a flat 1 month (30 days) per year for all years of service. Before this date, the old RD 35/2003 formula applied: 15 days per year for the first 3 years, and 30 days per year after 3 years. Employees with service spanning both sides of July 31, 2023 have their gratuity split-calculated under both laws.
Is end of service gratuity taxable in GCC?
No. All six GCC countries — UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Oman — do not levy personal income tax on employees. End of service benefits and gratuity are paid entirely tax-free.
What salary is used to calculate end of service?
This varies by country. UAE: basic salary only. Saudi Arabia: the "actual wage" (basic salary plus all fixed regular allowances — housing, transport, communication). Bahrain, Qatar, Kuwait, Oman: basic salary only. Including the correct salary base is essential for an accurate result.
Can my employer deduct from my gratuity?
Employers may deduct certain amounts from gratuity only in specific circumstances defined by law — such as outstanding salary loans or losses caused by the employee due to negligence or misconduct. An employer cannot deduct arbitrary amounts. If you believe an unlawful deduction has been made, file a complaint with the Labour Ministry of your country.
Does service from a previous stint with the same employer count?
Generally not. Each employment contract is treated separately. If you resigned, collected gratuity, and were re-hired, your years of service restart from the new joining date. However, if there was an internal transfer or restructure without a break in employment, continuous service may be recognised — check your offer letter and HR policy.