End-of-service gratuity used to be simple: a lump sum from your employer, worked out from your salary and years of service. That model still applies in most cases, but since 2021 several Gulf countries have changed the formula, the payer, or the process. Here is what changed, country by country, and what it means for your calculation.
At a glance
| Country | Change | In force |
|---|---|---|
| UAE | New labour law; optional savings scheme can replace gratuity | 2 Feb 2022; scheme from Oct 2023 |
| Saudi Arabia | Labor Law amendments, new resignation process | 19 Feb 2025 |
| Qatar | Law No. 9 of 2026 amends the Labour Law | Published 25 Jun 2026 |
| Oman | New Labour Law; savings fund to replace gratuity for non-Omanis | 31 Jul 2023; fund by 19 Jul 2027 at the latest |
| Bahrain | SIO pays expatriate end-of-service | 1 Mar 2024 |
| Kuwait | No enacted change to the indemnity found | — |
United Arab Emirates
New law. Federal Decree-Law No. 33 of 2021 replaced the 1980 law from 2 February 2022. The gratuity formula in Article 51 (21 days’ basic wage per year for five years, 30 days after, capped at two years’ wage) looks familiar, but two things changed for workers:
- the old reductions for resignation are gone, so resigning after one year no longer cuts your gratuity;
- legal commentary reads the new law as no longer forfeiting gratuity on dismissal without notice under Article 44.
Later amendments in 2023 and 2024 dealt with claims and penalties and did not change Article 51.
Savings scheme. Cabinet Resolution No. 96 of 2023 created an alternative end-of-service savings scheme. It is voluntary for employers, but once an employer enrols a category of staff, participation becomes mandatory for them. The employer pays 5.83% of monthly basic wage for staff under five years’ service and 8.33% from five years, and employees may add more. For enrolled service, this replaces the employer-paid gratuity. MOHRE ran a public consultation on the scheme between March 2025 and February 2026; as of our last review it remains optional.
UAE gratuity calculator · UAE labour law guide
Saudi Arabia
A package of amendments approved in August 2024 took effect on 19 February 2025, changing dozens of articles of the Labor Law. The consolidated text on the Bureau of Experts site marks every article the 2025 decree changed, and Articles 84, 85, 87 and 88 on the end-of-service award carry no amendment note: the formula and the resignation shares are unchanged.
The changes that do affect leaving a job:
- Resignation process (new Article 79-bis). A resignation is treated as accepted after 30 days; the employer may defer it by up to 60 days; the employee may withdraw it within 7 days.
- Notice (Article 75). For monthly-paid workers on open-ended contracts, the employer must give 60 days’ notice and the employee 30 days.
- Overtime (Article 107). Paid days off may now replace overtime pay if the employee agrees.
- Special leave (Article 113). Five days for marriage or the death of a spouse, parent or child; a new three days for the death of a brother or sister; and three days’ paternity leave, to be taken within seven days of the birth.
The Social Insurance Law that took effect on 3 July 2024 did not replace the end-of-service award: Saudis and expatriates both remain entitled to it.
Saudi gratuity calculator · Saudi labour law guide
Qatar
Law No. 9 of 2026 was published in the Official Gazette on 25 June 2026 and amends Labour Law No. 14 of 2004. Implementing decisions were still pending at our last review.
- No source we reviewed reports a change to the gratuity rate (at least three weeks’ basic wage per year, Article 54), to notice, leave or overtime.
- It adds a new ground for dismissal without notice or gratuity: inciting an unlawful strike that disrupts operations.
- Part-time and freelance workers are now outside the Labour Law.
Qatar gratuity calculator · Qatar labour law guide
Oman
New Labour Law. Royal Decree 53/2023 took effect on 31 July 2023. Gratuity for non-Omanis is now at least one month’s basic wage per year, with no minimum service and no reduction for resignation.
Transitional rule. Ministry guidance, as reported in the press, splits your service at 31 July 2023:
- service before that date: 15 days’ wage for each of the first three years, then one month per year, under the old law (Royal Decree 35/2003);
- service from that date: one month per year.
We have not seen the official circular’s exact wording, so check your figure with your employer if you have long service before 2023. Our Oman gratuity calculator applies this split automatically.
Savings fund. The Social Protection Law (Royal Decree 52/2023) will replace the gratuity for non-Omanis with a savings system in the Social Protection Fund, funded by an employer contribution of 9% of monthly basic wage. Royal Decree 60/2025 pushed back the start: the Fund’s board will set the date, no later than 19 July 2027. Until then the Article 61 gratuity applies, and gratuity earned before the switch remains owed.
Bahrain
Since 1 March 2024, under Resolution No. 109 of 2023, employers pay monthly contributions for non-Bahraini workers to the Social Insurance Organization (SIO): 4.2% of wage for the first three years and 8.4% after. When you leave, you claim this part of your end-of-service benefit from the SIO.
Service up to 29 February 2024 is still paid directly by the employer under Article 116 of the Labour Law. The resolution has reportedly been amended since, and sources differ on exactly which workers are covered (non-GCC expatriates only, or a wider group), so confirm your status with the SIO.
Bahrain gratuity calculator · Bahrain labour law guide
Kuwait
We found no enacted change to Kuwait’s end-of-service indemnity in 2025 or 2026. The rules of Law No. 6 of 2010, as amended in 2017 and 2018, still apply. A proposal to raise annual leave did not progress.
Kuwait gratuity calculator · Kuwait labour law guide
What this means for you
- Check who pays. In the UAE (if your employer joined the savings scheme) and in Bahrain (for service since March 2024), part or all of your benefit may come from a fund, not your employer.
- Split long service correctly. In Oman, service before and after 31 July 2023 is calculated differently.
- Ignore outdated advice. Many articles still describe the UAE’s old resignation cuts, or forfeiture under Article 44.
- Watch for dates. Oman’s savings fund and Qatar’s implementing decisions are still to come.
We review these rules regularly and show the review date on every calculator. Results are estimates, not legal advice.