Gulf Gratuity Compared — Which Country Pays the Most?
The same worker, six countries: 10 years of service
To compare fairly, the table below uses one identical worker everywhere: 10 years of service, contract ended by the employer, and expresses the payout as months of monthly salary (the salary base each law uses — read the base column, it matters).
| Country | Salary base | You walk away with | Rule in one line |
|---|---|---|---|
| Oman (post-Jul 2023 service) | Basic salary | ≈ 10 months | 1 month of basic per year, flat (Royal Decree 53/2023) |
| Bahrain (post-Mar 2024 service) | Basic + social allowance | ≈ 8.6 months | Employer funds your SIO account: 4.2% of salary/mo (first 3 yrs), then 8.4% |
| UAE | Basic salary | ≈ 8.5 months | 21 days/yr for 5 years, then 30 days/yr — no resignation cut since 2022 |
| Kuwait | Total wage | ≈ 7.9 months | 15 days/yr for 5 years, then 1 month/yr, capped at 18 months |
| Saudi Arabia | Total wage | ≈ 7.5 months | ½ month/yr for 5 years, then 1 month/yr, no cap |
| Qatar | Basic salary | ≈ 7 months | At least 21 days of basic per year, flat (Art. 54) |
Bahrain's figure is accumulated employer contributions to your SIO account, not a lump-sum entitlement paid by the employer at exit — you receive it from the SIO under its rules. Oman's figure applies to service after 31 July 2023; earlier service uses the old, lower tiers (our Oman calculator splits the two automatically). Kuwait's daily rate is the monthly wage ÷ 26, which is why 15 days ≈ 0.58 of a month.
The differences that actually decide your payout
- Resignation: The UAE pays in full even if you resign. Kuwait pays ½ (3–5 yrs), ⅔ (5–10 yrs) or in full (10+ yrs) on resignation; Saudi pays ⅓, ⅔ or full on the same ladder. Resigning early in Kuwait or Saudi is the single most expensive mistake expats make.
- Minimum service: Most countries require 1 full year before anything is payable. Bahrain's SIO funding starts from your first month.
- The base: UAE, Qatar and Oman calculate on basic salary only — a low-basic/high-allowance contract quietly shrinks your payout. Saudi and Kuwait use the total (last) wage, which favours allowance-heavy packages.
- Caps: UAE caps the total at 2 years of total wage; Kuwait caps at 18 months of wage. Saudi has no cap. Qatar and Oman have no general cap either.
- Who pays: Everywhere except Bahrain, the employer pays you directly at the end of service. In Bahrain (since March 2024) the money accumulates in your SIO account instead — safer if an employer becomes insolvent.
So which country is "best"?
For the end-of-service payout alone, Oman (new law) and the UAE lead, and the UAE wins on simplicity and the no-resignation-cut rule. But nobody should choose a country on gratuity alone: salaries in Qatar and the UAE are typically higher to begin with, and 7 months of a Qatari salary can beat 10 months of a lower salary elsewhere. Use the country calculators below with your real numbers — that is the only comparison that counts.
Frequently asked questions
Which Gulf country pays the highest gratuity?
Per year of service, Oman under its 2023 law pays the most: one full month of basic salary for every year, so 10 years of service is worth about 10 months of basic pay. The UAE is next at about 8.5 months of basic pay after 10 years. In absolute money, higher salaries in the UAE and Qatar often still produce the bigger cheque.
Is gratuity calculated on basic salary or total salary?
It depends on the country. The UAE, Qatar and Oman use your basic salary only. Saudi Arabia and Kuwait use your total (last) wage, including allowances. Bahrain's SIO contributions are based on basic salary plus the social allowance. This is why two people with the same total pay can receive very different amounts in different countries.
Do I lose my gratuity if I resign?
In the UAE, no — resignation has not reduced gratuity since February 2022. In Kuwait and Saudi Arabia, resigning reduces your award unless you have long service (full payment at 10+ years in both). In Qatar, Oman and Bahrain (SIO), resignation does not cut the entitlement once you qualify.
How much gratuity do I get after 10 years in the Gulf?
With 10 years of service and an employer-ended contract: about 10 months of basic pay in Oman (post-2023 service), 8.5 months of basic in the UAE, about 8.6 months of accumulated SIO contributions in Bahrain, 7.9 months of total wage in Kuwait, 7.5 months of total wage in Saudi Arabia, and 7 months of basic pay in Qatar.
Which country has no gratuity cap?
Saudi Arabia has no cap on the end-of-service award, and Qatar and Oman have no general cap either. The UAE caps gratuity at the equivalent of two years of total wage, and Kuwait caps indemnity at 18 months of wage for monthly-paid employees.
When your final settlement lands, compare the live exchange rate and total fee before you transfer — on a 10-year payout, a 2% rate gap can cost a full month of salary.
Run your own numbers:
UAE Gratuity Calculator ·
Qatar Gratuity Calculator ·
Oman End of Service Calculator ·
Kuwait Indemnity Calculator ·
Saudi End of Service Calculator ·
Bahrain Gratuity Calculator
Comparison based on UAE Federal Decree-Law 33/2021, Saudi Labour Law, Qatar Labour Law 14/2004, Kuwait Labour Law 6/2010, Oman Royal Decree 53/2023 and Bahrain Labour Law & SIO Resolution 109/2023, for a monthly-paid employee whose contract is ended by the employer. General information, not legal advice.