Two colleagues on the same salary can leave with very different end of service payments because of their passports. In most of the Gulf, citizens build a state pension instead of an employer gratuity. Saudi Arabia is the exception. Here is who gets what.
A lump sum gratuity paid by the employer stands in for the pension an expatriate does not build locally. Citizens are enrolled in the national social insurance fund, which pays a pension or a lump sum on retirement. Other GCC nationals working outside their home country are covered by the GCC unified insurance protection extension, under which the host country collects contributions for the employee's home fund.
Saudi Arabia is the one country where nationals get both. Article 84 of the Labour Law awards half a month's wage for each of the first five years and a full month for each year after, on the full wage including fixed allowances, and it applies to Saudi and non Saudi employees alike. Saudi nationals also contribute to the General Organization for Social Insurance (GOSI) pension. The pension does not replace the award.
Expatriates receive the same Article 84 award. Other GCC nationals in Saudi Arabia are registered for their home pension through the extension scheme. Because Article 84 is not limited by nationality, the award should still apply to them, but confirm with the employer.
Article 51 of Federal Decree Law No. 33 of 2021 splits workers in two. A UAE national's end of service entitlement follows the pensions and social security legislation, administered by the General Pension and Social Security Authority (GPSSA). For Emiratis who joined the workforce from 31 October 2023, that is Federal Decree Law No. 57 of 2023. A full time foreign worker with at least one year of continuous service receives 21 days of basic wage for each of the first five years and 30 days for each year after, capped at two years' wage.
Other GCC nationals in the UAE fall under the extension scheme run by GPSSA since January 2007 under Cabinet Resolution No. 18 of 2007. GPSSA states that employers owe end of service gratuity under the Labour Law only for service before the extension applied to the employee.
Qatari nationals in the private sector are covered by Social Insurance Law No. 1 of 2022, managed by the General Retirement and Social Insurance Authority (GRSIA). Article 54 of Labour Law No. 14 of 2004 gives at least three weeks' wage per year after one year of service, and its text is not limited to foreigners. Article 56 says an employer whose pension or similar scheme gives the worker more than the gratuity does not have to pay both. Qatari retirement law has also barred combining a pension with a gratuity, and courts have split on how these rules fit. In practice, Qatari nationals usually receive the pension instead. Expatriates receive the Article 54 gratuity.
Article 116 of Labour Law No. 36 of 2012 gives the leaving indemnity to workers who are not covered by the Social Insurance Law for pensions. Bahraini nationals are covered by the Social Insurance Organisation (SIO) pension, so they build a pension, not an indemnity. Expatriates receive half a month per year for three years, then a full month per year.
Since 1 March 2024, under Resolution No. 109 of 2023, employers no longer hold the expatriate indemnity themselves. They pay the SIO 4.2% of monthly wages for each of the first three years of service and 8.4% after that. The SIO pays the worker within 5 working days of an application. Service before March 2024 stays with the employer.
| Country | Citizens | Other GCC nationals | Expatriates |
|---|---|---|---|
| Saudi Arabia | GOSI pension and Article 84 award | Home pension via extension, Article 84 likely applies | Article 84 award |
| UAE | GPSSA pension, no Article 51 gratuity | Home pension via GPSSA, gratuity only for service before extension | Article 51 gratuity |
| Qatar | GRSIA pension, usually instead of gratuity | Home pension via extension | Article 54 gratuity |
| Bahrain | SIO pension, no Article 116 indemnity | Home pension via extension | Article 116 indemnity, paid by SIO for service since March 2024 |
Domestic workers follow separate laws. See our domestic worker guide.
Calculate your gratuityChecked against the published labour law text for each country. Where the law is unclear or interpretations differ, we say so. Last verified 5 October 2026.