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How partial years of service are counted

Very few people leave a job on the exact anniversary of their start date. All four GCC countries pay gratuity for part of a year in proportion, but the minimum service rules and the point where the rate steps up mean the months you add can matter more than you expect.

In this guideThe proportional ruleConverting months and daysWorked examples by countryCrossing a rate stepMinimum service rulesGetting the dates right

The proportional rule

Saudi Arabia (Article 84), the UAE (Article 51), Qatar (Article 54) and Bahrain (Article 116) all pay gratuity for fractions of a year in proportion to the time worked. Service of 3 years and 6 months is treated as 3.5 years, not rounded down to 3 or up to 4.

Converting months and days

The simplest conversion divides months by 12. For a result accurate to the day, divide the extra days by 365 or convert them into a fraction of a month. The difference is usually small, but on a large salary it can be a noticeable amount.

ServiceAs a decimal of years
3 months0.25
6 months0.5
7 months0.583
7 months and 15 days0.625
9 months0.75

Worked examples by country

Saudi Arabia: a wage of 9,000 SAR, 3 years and 7 months, ended by the employer.
3.583 × ½ × 9,000 = 16,125 SAR
With 15 more days (3.625 years): 16,313 SAR
Source: Saudi Labour Law, Article 84.
UAE: a basic salary of 9,000 AED, 1 year and 6 months.
1.5 × 21 × (9,000 ÷ 30) = 9,450 AED
Source: UAE Federal Decree Law No. 33 of 2021, Article 51.
Qatar: a basic salary of 6,000 QAR, 2 years and 4 months.
2.333 × 21 × (6,000 ÷ 30) = 9,800 QAR
Source: Qatar Labour Law No. 14 of 2004, Article 54.

Crossing a rate step

Saudi Arabia and the UAE step up after five years, and Bahrain after three. Months beyond the step are paid at the higher rate, which makes them worth roughly twice as much as months before it.

Saudi Arabia: a wage of 12,000 SAR, 5 years and 9 months, ended by the employer.
First 5 years: 5 × ½ × 12,000 = 30,000 SAR
Remaining 9 months: 0.75 × 12,000 = 9,000 SAR
Total: 39,000 SAR
Source: Saudi Labour Law, Article 84.
Bahrain: a wage of 1,000 BHD, 3 years and 6 months.
First 3 years: 3 × ½ × 1,000 = 1,500 BHD
Remaining 6 months: 0.5 × 1,000 = 500 BHD
Total: 2,000 BHD
Source: Bahrain Labour Law No. 36 of 2012, Article 116.

Minimum service rules

Proportional payment only starts once any minimum service is met. In the UAE and Qatar, an employee with less than one year of service receives no gratuity, so 11 months of service pays nothing at all. In Saudi Arabia there is no minimum when the employer ends the contract, but an employee who resigns before two years receives nothing under Article 85. Bahrain has no minimum at all. Article 116 pays fractions of a year in proportion to the time served, so even a few months of service earn a share.

This makes the first anniversary in the UAE and Qatar, and the second in Saudi Arabia for resignations, the most valuable dates in your employment. Leaving a few weeks before them can cost the entire entitlement.

Getting the dates right

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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.