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Gratuity when an employee dies
When an employee dies in service, the gratuity they earned doesn't disappear. It becomes part of the dues payable to their family. This guide explains how it's calculated and what the family can do to make sure it's paid.
We know this guide may be read at a very difficult time. It's written to be practical, so the family can focus on what needs to be done.
Death is not a resignation
In all four countries, the death of the employee ends the employment contract. It isn't a resignation, so the Saudi resignation reduction in Article 85 doesn't apply. The full entitlement for the service completed is payable, calculated exactly as it would be if the employer had ended the contract on that date.
How the amount is calculated
The usual formula for each country applies, using the employee's last wage and service up to the date of death:
- Saudi Arabia: half a month's wage for each of the first five years and a full month for each year after, on basic salary plus fixed allowances.
- UAE: 21 days of basic wage for each of the first five years and 30 days after, subject to the one year minimum and the two year cap.
- Qatar: 21 days of basic wage per year, subject to the one year minimum.
- Bahrain: half a month's wage for each of the first three years and a full month after, with the portion from March 2024 held by SIO.
Example in Saudi Arabia: an employee with a wage of 15,000 SAR dies after 12 years of service.
First 5 years: 5 × ½ × 15,000 = 37,500 SAR
Next 7 years: 7 × 15,000 = 105,000 SAR
Total payable to the heirs:
142,500 SAR, the same as if the employer had ended the contract.
Source: Saudi Labour Law, Article 84.
Who receives it
The gratuity is paid to the employee's legal heirs as part of their estate. Employers usually ask for an official document identifying the heirs before paying, such as a certificate issued by a court in the country, or equivalent documents from the employee's home country that have been attested for use locally. The distribution between heirs follows the inheritance law that applies to the employee. Where the family is outside the country, the employer or the embassy of the employee's home country can often help arrange payment.
Other dues alongside gratuity
Gratuity is only one part of the final settlement. The family should also ask for:
- Salary for the days worked in the final month.
- Payment for any accrued annual leave not taken.
- Any life insurance or group insurance benefit provided by the employer.
- Repatriation costs, which employers in the region commonly cover for expatriate employees under the law or the contract.
- For Saudi nationals, any GOSI benefits, which are claimed separately from GOSI.
Practical steps for the family
- Contact the employer's HR department in writing, stating the date of death.
- Ask for a written statement of all dues, showing the wage and service used for the gratuity.
- Gather the death certificate, the employee's contract and recent payslips, and the documents identifying the heirs.
- Check the figure using the calculator, choosing termination by the employer as the reason for leaving.
- If payment is delayed, follow the complaint route in our guide to claiming unpaid gratuity, keeping the time limits in mind.
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Reviewed by the Gratuity Tracker editorial team
Checked 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.