Is gratuity calculated on basic salary or gross salary?

It depends on the country. Saudi Arabia uses basic salary plus fixed allowances. UAE and Qatar use basic salary only. Bahrain uses basic salary plus social allowance if applicable. Bonuses, commissions and variable allowances are excluded everywhere.

Does resigning reduce my gratuity in the GCC?

Only in Saudi Arabia, where resignation before 2 years pays nothing, 2 to 5 years pays one third, 5 to 10 years pays two thirds, and over 10 years pays the full amount. The UAE, Qatar and Bahrain pay the same gratuity whether you resign or are terminated.

Do UAE and Bahraini nationals get this gratuity?

No. UAE nationals are covered by the GPSSA pension scheme and Bahraini nationals by the SIO pension scheme instead of employer-paid gratuity. Saudi nationals are the exception and are covered by the same Labour Law gratuity formula as expatriate employees.

Saudi Labour Law, Articles 84 & 85

End of Service Gratuity Calculator

Estimate your statutory end of service benefit across Saudi Arabia, the UAE, Qatar and Bahrain, based on each country's own labour law formula.

Your details

● For Saudi and non-Saudi private-sector employees.

Last monthly wage (SAR)

Include basic salary plus fixed allowances (housing, transport). Exclude bonuses and commissions.

Full years of service

Additional months

How is your employment ending?

Termination by employerFull gratuity applies ResignationMay be reduced depending on years served End of fixed-term contractTreated as employer-ended

Estimated entitlement

Based on the figures entered

SAR35,000

Total gratuity payable

First tier (15 days/year)25,000

After that (30 days/year)10,000

Full gratuity before adjustment35,000

Resignation adjustmentNot applicable — full gratuity

Payable amount35,000

This is an estimate, not a legal or payroll determination. The calculation follows Saudi Labour Law, Articles 84 & 85. Actual entitlement can be affected by contract terms and company policy. Confirm final figures with HR or a licensed advisor.

Applies to both Saudi and non-Saudi employees under the Labour Law. Saudi nationals also accrue GOSI pension contributions in parallel; employers may offset part of the gratuity liability against GOSI old-age contributions in practice.

Wage basis: Calculated on basic salary plus fixed allowances (e.g. housing, transport) as stated in the contract — Article 2's definition of "actual wage."

Reviewed by the Gratuity Tracker editorial team

Our formulas are cross-checked directly against each country's published labour law articles and reviewed by contributors with over two decades of combined HR, payroll and digital operations experience across GCC government and private-sector employers.

Saudi Arabia formula last verified 14 September 2026

Saudi Arabia

Governed by Articles 84 and 85 of the Saudi Labour Law. This is the one GCC country where how you leave still changes what you're paid. Resign before 2 years and you get nothing. Between 2 and 5 years, a third of the full amount. Between 5 and 10, two thirds. Past 10 years, resignation and termination pay the same.

Example: a 12,000 SAR basic salary, 7 years of service, resignation.
First 5 years: 5 × (12,000 ÷ 30) × 15 = 30,000 SAR. Remaining 2 years: 2 × (12,000 ÷ 30) × 30 = 24,000 SAR.
Full gratuity: 54,000 SAR. Resignation tier (5–10 years, two thirds): 36,000 SAR payable.

Source: Saudi Labour Law, Articles 84–85.

Country	Wage basis	Formula	Resignation penalty
Saudi Arabia	Basic + fixed allowances	15 days/year (first 5), 30 days/year after	Yes, tiered by years served
UAE	Basic salary only	21 days/year (first 5), 30 days/year after, capped at 2 years' pay	None since 2022
Qatar	Basic salary only	Flat 21 days/year, every year	None
Bahrain	Basic + social allowance	15 days/year (first 3), 30 days/year after	None under current law

End of Service Gratuity Calculator

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Frequently asked

Which GCC country pays the highest gratuity rate?

Is gratuity taxed anywhere in the GCC?

Does unpaid leave reduce my gratuity?