End-of-Service Gratuity Calculator
Calculate statutory end-of-service benefit from your wage and length of service, using each state’s own tiered formula and caps.
End-of-Service Gratuity Calculator
Statutory entitlement under each state’s own labour law.
This state calculates on: Basic wage. Using the wrong wage is the most common source of error in a gratuity dispute.
Method. The daily wage is the monthly wage divided by 30. Days accrue at the first-tier rate for each of the early years of service and at the second-tier rate thereafter, pro-rated for part years, then any statutory cap or resignation scale is applied.
Unpaid leave, unauthorised absence and periods outside the contract generally do not count towards service. Where employment ends on summary-dismissal grounds, entitlement can be lost entirely.
A summary of the statutory position, not legal advice. Check the current labour law text or take advice from a licensed practitioner before relying on a figure in a settlement.
| Country | Formula | Calculated on | Qualifying period | Cap |
|---|---|---|---|---|
| United Arab Emirates | 21 days of basic wage for each of the first five years, 30 days for each year after, capped at two years’ wage. | Basic wage | 1 year | 24 months’ wage |
| Saudi Arabia | Half a month’s wage for each of the first five years, a full month for each year after. | Total wage | 1 year | None |
| Qatar | A statutory minimum of three weeks’ basic wage for each year of service, after one completed year. | Basic wage | 1 year | None |
| Kuwait | 15 days’ wage for each of the first five years, one month for each year after, capped at 18 months’ wage. | Total wage | 1 year | 18 months’ wage |
| Bahrain | 15 days’ wage for each of the first three years, one month for each year after. | Total wage | From day one | None |
| Oman | 15 days’ basic wage for each of the first three years, one month for each year after. | Basic wage | 1 year | None |
How entitlement accrues
End-of-service gratuity is a statutory payment that builds with length of service, and every Gulf state uses a tiered formula: a lower daily accrual for the early years of service and a higher one afterwards. The UAE accrues 21 days of basic wage for each of the first five years and 30 days for each year after, capped at two years' wage in total. Saudi Arabia uses half a month for the first five years and a full month thereafter. Bahrain and Oman step up after three years rather than five. Kuwait steps up after five and caps the total at 18 months.
Basic wage or total wage
This is where most disputes start. Some statutes measure the award against basic wage, excluding housing, transport and other allowances; others measure it against total wage. On a package where allowances make up a large share of the total — common across the Gulf — the two produce very different numbers. The calculator labels which wage the state you select actually uses, and it is worth checking your contract against that label before assuming a figure.
Resignation changes the answer in some states
Under current UAE law, an employee who has completed a year of continuous service receives the full calculated gratuity whether they resign or the contract ends, save on defined summary-dismissal grounds. Saudi Arabia and Kuwait both scale the award down on resignation according to length of service, paying nothing below a minimum period and a fraction until longer service is reached. Unpaid leave and unauthorised absence generally do not count towards service anywhere.
Common questions
How is gratuity calculated in the UAE?
Twenty-one calendar days of basic wage for each of the first five years of service, and 30 days for each year after that, with the total capped at two years' wage. The daily figure is the monthly basic wage divided by 30. Service under one year carries no entitlement.
Do I still get gratuity if I resign?
It depends on the state. Under current UAE law an employee with a year of continuous service receives the full amount on resignation. Saudi Arabia and Kuwait scale the award by length of service, paying nothing below a threshold and a fraction of the total until longer service is reached. Select the country above and the applicable treatment is applied.
Is gratuity based on basic salary or total salary?
It varies by state, and it is the single most common source of error. Some statutes measure the award against basic wage only, excluding allowances; others use the total wage. The calculator shows which basis applies to the country you select.
Statutory minimums. Your contract may provide more, and unpaid leave usually does not count towards service. NexaGulf publishes general information, not licensed financial, tax or legal advice.