End-of-Service Gratuity Calculator

End-of-service gratuity — also called severance pay, indemnity, or final settlement — is a lump-sum payment every private-sector employee in the GCC is legally entitled to when their employment ends. Unlike pension systems in Europe or the Americas, GCC labor laws mandate a one-off payment calculated from the employee's basic monthly salary and total years of service.

The amount you receive depends on three factors: which country you work in, how long you've been employed, and whether you resign or are terminated by your employer. Getting this calculation wrong is common — and costly. Our free calculator gives you an instant, transparent estimate based on current legislation, so you can plan your career moves with confidence. You can also explore salary data across the GCC or compare cost of living between cities to get the full picture.

Gratuity calculator for the UAE

Under UAE Federal Decree-Law No. 33 of 2021 (effective February 2022), all employment contracts are fixed-term. Gratuity accrues at 21 days of basic salary per year for the first five years and 30 days per year thereafter. The total is capped at two years' salary. Employees who resign before completing one year receive nothing; resignation between one and three years pays one-third; three to five years pays two-thirds; and five years or more pays the full entitlement. Termination by the employer always pays the full amount, regardless of tenure — unless for cause under Article 44.

Gratuity calculator for Saudi Arabia

Saudi Labor Law (Royal Decree M/51, as amended) provides 15 days of basic salary per year for the first five years and a full month (30 days) per year thereafter, with no statutory cap. Resignation before two years forfeits all gratuity; two to five years yields one-third; five to ten years yields two-thirds; and ten years or more yields the full amount. Saudi Arabia has the longest minimum-service threshold for full resignation entitlement in the GCC at ten years.

End-of-service calculator for Qatar

Qatar's gratuity framework (Law No. 14 of 2004, amended by Law No. 17 of 2020) is straightforward: three weeks (21 days) of basic salary per year for all years of service, with no cap and no tiering. Employees who resign after completing at least one year of service receive the full per-year entitlement. Termination by the employer pays full gratuity from day one.

Bahrain and Kuwait

Bahrain (Law No. 36 of 2012) uses a two-tier structure: 15 days per year for the first three years, then 30 days per year. Resignation before three years means zero; three to five years pays one-third; five or more pays in full. Kuwait (Law No. 6 of 2010) mirrors the Saudi tier structure (15 days then 30 days at five years) but adds a cap at 1.5 years' salary and uses its own resignation thresholds — including a half entitlement at three to five years that is unique among GCC countries.

Resignation vs. termination: what's the difference?

In every GCC country, employees terminated by their employer receive full gratuity from day one of service. Employees who resign may receive a reduced amount — or nothing — if they haven't crossed the minimum service threshold. This difference can be substantial. A UAE employee who resigns after four years receives only two-thirds of their entitlement; if terminated, they receive the full amount. Our calculator shows both scenarios side by side so you can see exactly what's at stake.

Common misconceptions about GCC gratuity

The most frequent error is calculating gratuity on total salary rather than basic salary. Across all five countries, only the basic salary component counts — housing allowances, transport, bonuses, commissions, and overtime are excluded. Since basic salary typically represents 50–70% of total compensation in the GCC, this means actual gratuity payments are often significantly lower than expected.

Free zone employees need to check their specific zone's rules carefully. In the UAE, DIFC replaced traditional gratuity with the DEWS (DIFC Employee Workplace Savings) scheme in February 2020 — employers contribute 5.83% of basic salary for years one through five and 8.33% from year six onward. Since April 2025, ADGM has offered an optional pension scheme; employees who opt in lose their gratuity entitlement. Most other UAE free zones (JAFZA, DMCC, Dubai Silicon Oasis, DAFZA, and others) follow Federal Decree-Law No. 33 of 2021 and use the standard gratuity calculation. In Qatar, the QFC does not mandate gratuity at all — any end-of-service payment is purely contractual. Saudi, Bahrain, and Kuwait free zones follow their respective national labor laws with no documented exceptions for gratuity.

Finally, note that termination for gross misconduct (such as under Article 44 of UAE labor law or Article 80 of Saudi labor law) may result in forfeiture of gratuity entirely. Probation periods are generally included in the service calculation, but contract-specific terms can vary.