Guide · Employment · Saudi Arabia and the UAE

End-of-service gratuity in the GCC

End of service in Arabic: مكافأة نهاية الخدمة — the statutory award from wage and length of service when the relationship ends, not a discretionary bonus.

End-of-service gratuity is the sum an employer must pay when the employment relationship ends, calculated from wage and length of service. It is a statutory award. It is not a bonus the parties invent. The wage that goes into the sum is not the same in Saudi Arabia and the UAE. The articles in Qatar, Bahrain, Kuwait and Oman are under review. This is general information, not legal advice.

النسخة العربية من هذا الدليل

This is general information, not legal advice, and it does not create a lawyer–client relationship. Laws change. Check the sources and have the text reviewed by a lawyer licensed in the relevant jurisdiction before you rely on it. Last reviewed: 29 October 2026.

In short

  • UAE, full-time foreign worker after one year: 21 days’ basic wage per year for the first five years, 30 days after that, capped at two years’ wage (Article 51 of Federal Decree-Law No. 33 of 2021).
  • Saudi Arabia: half a month’s last wage per year for the first five years, a full month after that (Labour Law, Article 84).
  • Do not copy a Saudi resignation fraction into a UAE contract, or a UAE basic-wage sentence into a Saudi contract.

What the award is

End-of-service gratuity is the sum the employer must pay when the relationship ends, from wage and length of service. It is a statutory right. It is not a discretionary bonus, and it is not the release the worker is asked to sign after payment.

The wage that goes into the sum changes the result. Saudi Arabia starts from the last wage, with a narrow agreed exclusion for commissions. The UAE, for a full-time foreign worker, uses the basic wage and leaves allowances out.

UAE: Article 51

Article 51 of Federal Decree-Law No. 33 of 2021 gives a full-time foreign worker, after one year of continuous service, 21 days’ basic wage for each of the first five years and 30 days for each year after that. Allowances such as housing and transport are out. A fraction of a year counts once the first year is complete. Unpaid absence is excluded. The total cannot exceed two years’ wage, and nothing is due under one year. Payment of wages and the gratuity is due within 14 days, and the employer may deduct what the worker owes.

UAE nationals take their benefit under the pensions legislation, not the 21/30-day scale. Part-time work follows Article 30 of Cabinet Resolution No. 1 of 2022, by hours against a full-time contract. An employer may instead enrol staff in the voluntary savings scheme, which replaces the gratuity for those staff after the amount accrued before enrolment is settled. The portal says the scheme covers the private sector and free zones.

Saudi Arabia: Article 84

Article 84 of the Labor Law, in the text published by the Ministry of Human Resources and Social Development, requires an award when the relationship ends: half a month’s wage for each of the first five years, and one month’s wage for each year after that, on the last wage. Fractions of a year count for the time worked. The parties may agree to leave commissions, and percentages of the sale price, out of that base.

On resignation: one third after two to five consecutive years, two thirds above five and under ten, and the full award at ten or more. The full award is also due for force majeure, and where a woman ends the contract within six months of marriage or three months of birth. Nothing is due if the contract ends during probation. Settlement is within one week, or two weeks if the worker ended the contract.

How the award is calculated

What the text supports, and what remains under review
CountryVerifiedUnder review
United Arab EmiratesFull-time foreign worker after one year: 21 days’ basic wage for the first five years, 30 days after, capped at two years’ wage (Article 51). Nothing under one year. Nationals: pensions legislation.Domestic-worker rules, and savings-scheme detail beyond what the portal states.
Saudi ArabiaHalf a month then a month on last wage (Article 84). Resignation fractions: one third / two thirds / full by years. Nothing during probation.Nothing in this row is left without a Saudi source.
QatarUnder review.No article and no formula on this page.
BahrainUnder review.No article and no formula on this page.
KuwaitUnder review.No article and no formula on this page.
OmanUnder review.No article and no formula on this page.

Questions

Questions about the gratuity

What is end of service in Arabic?

مكافأة نهاية الخدمة. It is a statutory award from wage and length of service when the relationship ends, not a discretionary bonus.

What wage is the Saudi award calculated on?

The last wage. Commissions and percentages of sales may be left out by agreement. Allowances are not automatically excluded.

What wage is the UAE award calculated on?

For a full-time foreign worker, the last basic wage. Housing and transport allowances stay out, and the total cannot exceed two years’ wage.

Is anything due if the worker leaves in the first year?

In the UAE, a full-time foreign worker with less than one year of continuous service is not entitled to the gratuity. In Saudi Arabia the resignation bands start at two years; an ending during probation does not earn the award.

Does the UAE savings scheme cancel the gratuity?

Only for workers the employer has enrolled. The employer stops the traditional gratuity for those workers and must settle the gratuity accrued before enrolment. Workers who are not enrolled stay on the statutory scale.

Sources

Checked against these official texts. Domestic-worker rules, and the employment laws of Qatar, Bahrain, Kuwait and Oman, are under review. Last reviewed: 29 October 2026.

  1. Saudi Labour Law, Article 84https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/08381293-6388-48e2-8ad2-a9a700f2aa94/1
  2. HRSD, Labor Law, consolidated text through Royal Decree No. M/44 (PDF)https://www.hrsd.gov.sa/sites/default/files/2025-11/labor-law.pdf
  3. HRSD, employment-relations pagehttps://www.hrsd.gov.sa/%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D8%A7%D9%84%D8%B9%D9%85%D9%84
  4. UAE government portal (u.ae), end-of-service benefits in the private sectorhttps://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/end-of-service-benefits-for-employees-in-the-private-sector
  5. UAE, Federal Decree-Law No. 33 of 2021, English text hosted on u.ae (PDF)https://assets.u.ae/api/public/content/eb65a60bbff949fa912eddd566613014?v=7174ed78