GCC Gratuity Comparison 2026: UAE vs Saudi vs Qatar vs Kuwait vs Bahrain vs Oman
Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the labour laws of the six GCC states; not legal advice.
This GCC gratuity comparison shows that end-of-service pay for the same worker can differ by more than double across the Gulf. On a 5,000 basic salary with 5 years of service: Oman pays 25,000 under its new law, the UAE, Qatar and Bahrain pay 17,500, Kuwait pays 14,423, and Saudi Arabia pays 12,500 (on basic salary alone — Saudi is the only country that also counts fixed allowances). The formulas, the salary basis and the resignation rules are all different, and this Gulf gratuity comparison 2026 walks through each one with worked numbers.
GCC gratuity comparison 2026: the full formula table
Every GCC gratuity comparison starts with the same three questions: which salary counts, how many days per year you earn, and whether resigning cuts your payout. Here is the complete Gulf gratuity comparison 2026 in one table:
| Country | Salary basis | First 5 years | After 5 years | Resignation cut? |
|---|---|---|---|---|
| UAE | Basic salary only | 21 days per year | 30 days per year | No |
| Saudi Arabia | Actual wage (basic + fixed allowances) | 15 days (half month) per year | 30 days (1 month) per year | Yes — big cuts under 10 years |
| Qatar | Basic salary only | 21 days per year | 21 days per year (minimum) | No |
| Kuwait | Basic salary only | 15 days per year | 30 days per year | Yes — gradual cuts under 10 years |
| Bahrain | Basic salary only | 15 days (half month) per year | 30 days (1 month) per year | No |
| Oman | Basic salary only | 30 days (1 month) per year | 30 days (1 month) per year | Depends on contract |
Want to double-check the official rules? See the Saudi Ministry of Human Resources' official end-of-service page or this independent GCC gratuity comparison.
Formulas are abstract; money is concrete. Here is the Gulf gratuity comparison 2026 applied to one identical worker — 5,000 basic salary, exactly 5 years of service, contract ended (not resigned):
| Country | Calculation | Gratuity payout |
|---|---|---|
| Oman (new law) | 5 × 5,000 (one month per year) | 25,000 |
| UAE | (5,000 ÷ 30) × 21 × 5 | 17,500 |
| Qatar | (5,000 ÷ 30) × 21 × 5 | 17,500 |
| Bahrain | (5,000 ÷ 30) × 15 × 3, then 2 × 5,000 | 17,500 |
| Kuwait | (5,000 ÷ 26) × 15 × 5 | 14,423 |
| Saudi Arabia | (5,000 ÷ 2) × 5 | 12,500 |
The same five years of the same work is worth 25,000 in Oman but only 12,500 in Saudi Arabia — exactly double. The UAE, Qatar and Bahrain cluster at 17,500 through completely different formulas, which is why a proper GCC gratuity comparison matters: headline numbers can look identical while the rules behind them are not.
A note on Saudi Arabia: 12,500 is the figure on basic salary alone. Because Saudi counts fixed allowances (housing, transport) in the "actual wage", a worker with 5,000 basic plus 2,000 in fixed allowances calculates on 7,000 instead — giving 17,500. In every other country in this Gulf gratuity comparison 2026, allowances never count.
What about 10 years? The gap gets bigger
Run the same GCC gratuity comparison at 10 years of service and the spread widens further:
| Country | 10-year payout (5,000 salary) |
|---|---|
| Oman (new law) | 50,000 |
| UAE | 42,500 |
| Bahrain | 42,500 |
| Kuwait | 39,423 |
| Saudi Arabia | 37,500 |
| Qatar | 35,000 |
Qatar is the interesting mover in this Gulf gratuity comparison 2026: level with the UAE at 5 years (17,500), but last at 10 years (35,000), because its 21-day rate never accelerates. Kuwait's jump to a full month per year after year five pushes it past both Saudi Arabia and Qatar. (UAE check: 5 × 21 + 5 × 30 = 255 days × 166.67 = 42,500, under the 24-month cap of 120,000. Kuwait check: 14,423.08 + 5 × 5,000 = 39,423.08, under the 18-month cap of 90,000.)
The ÷30 vs ÷26 detail that changes your payout
One small number in this GCC gratuity comparison makes a big difference: the divisor. The UAE, Qatar and Bahrain divide your monthly salary by 30 to get the daily wage. Kuwait divides by 26. On a 5,000 salary, the daily wage is 166.67 under ÷ 30 but 192.31 under ÷ 26 — the Kuwaiti method pays about 15% more for the same number of days. If your employer ever shows you a Kuwait settlement calculated with ÷ 30, that single number is quietly costing you roughly one-seventh of your first-five-years gratuity. Always check the divisor on the settlement sheet, not just the final total.
Early career: what 3 years of service pays
Not everyone stays five years. Here is the Gulf gratuity comparison 2026 at 3 years of service on the same 5,000 salary:
| Country | 3-year payout |
|---|---|
| Oman (new law) | 15,000 |
| UAE | 10,500 |
| Qatar | 10,500 |
| Kuwait | 8,654 |
| Saudi Arabia | 7,500 |
| Bahrain | 7,500 |
At 3 years, Bahrain drops to the bottom tier with Saudi Arabia — its half-month rate for the first three years is the stingiest early-career formula in this GCC gratuity comparison. But watch what happens next: from year four, Bahrain jumps to a full month per year, while Saudi Arabia stays at half-month until year six. In this Gulf gratuity comparison 2026, timing matters as much as the formula.
Which Gulf country pays the most gratuity?
On pure formula, Oman wins this GCC gratuity comparison — one full month per year from the first year under the new labour law, with no tiered ramp-up. At both 5 and 10 years it pays roughly 40% more than the UAE–Qatar–Bahrain cluster.
The honest answer, though, depends on your contract. Saudi Arabia looks last on basic salary alone, but a worker with large fixed allowances can leapfrog Kuwait and Qatar, because allowances count there and nowhere else. Qatar's flat 21-day rate is generous early but the weakest for long service. And Kuwait's unusual ÷ 26 divisor quietly boosts every calculation by about 15% versus a ÷ 30 country on the same salary.
Use our UAE gratuity calculator, Saudi gratuity calculator, Qatar gratuity calculator, Kuwait gratuity calculator, Bahrain gratuity calculator and Oman gratuity calculator to run your own exact numbers — this Gulf gratuity comparison 2026 gives you the map, and the calculators give you the figure.
Key rules that apply in all six GCC countries
- One-year minimum. In almost every GCC country you must complete at least one full year of continuous service before any gratuity is payable. Leave earlier and you typically get nothing.
- The daily-wage formula. Where the law counts days (UAE, Qatar, Kuwait, Bahrain), the daily wage is monthly salary ÷ 30 — except Kuwait, which uses ÷ 26. Multiply the daily wage by your days-per-year and your years of service.
- Basic salary is king. In five of the six countries only basic salary counts. Saudi Arabia is the exception: fixed allowances join the calculation.
- Caps exist. The UAE caps gratuity at two years' wages (24 months); Kuwait caps at 18 months. The caps rarely bite below 20+ years of service, but check them on very long careers.
- Pro-rata for partial years. Worked 5 years and 7 months? The extra months are calculated pro-rata in every GCC country — you do not lose them.
Resignation vs termination: where it hurts most
This is the part of the GCC gratuity comparison that costs real money. In the UAE, Qatar and Bahrain, resigning changes nothing — you get the same gratuity as if you were terminated. In Saudi Arabia, resigning with under 2 years gives you nothing at all, 2–5 years gives one-third, 5–10 years gives two-thirds, and only 10+ years gives the full amount. Kuwait is similar but gentler: nothing under 3 years, half for 3–5 years, two-thirds for 5–10 years, and full at 10+ years. In Oman it depends on your contract track — check whether you are on the old gratuity system or the new savings-scheme track before you resign.
Bottom line from this Gulf gratuity comparison 2026: if you are in Saudi Arabia or Kuwait and thinking of resigning, the calendar matters enormously — crossing the 5-year or 10-year mark can double your payout.
Final checklist before you sign your settlement
Use this GCC gratuity comparison as a checklist when HR hands you the final settlement sheet:
- Confirm the salary basis. Is it your basic salary? (In Saudi Arabia, add your fixed allowances too.)
- Check the divisor. ÷ 30 everywhere except Kuwait, which uses ÷ 26.
- Count the tiers. Did they apply 21 days for the first five years and 30 days after (UAE), or the right Kuwait, Saudi, Bahrain and Oman tiers?
- Apply resignation rules honestly. If you resigned in Saudi Arabia or Kuwait, the brackets in this Gulf gratuity comparison 2026 decide your real number.
- Check the cap. UAE: 24 months. Kuwait: 18 months. Anything above the cap is not payable.
- Compare with the calculator. Run your dates through our free country calculator — if the numbers differ, ask HR to show their working before you sign.
Never sign a final settlement you do not understand. In every GCC country you can ask for the written breakdown, and you can file a labour complaint if the figures do not match the law.
Related guides
- UAE gratuity calculator
- Saudi gratuity calculator
- Qatar gratuity calculator
- Kuwait gratuity calculator
- Bahrain gratuity calculator
- Oman gratuity calculator
Frequently asked questions
Which GCC country pays the highest gratuity?
Oman, under its new labour law — one full month's basic salary for every year of service from year one, with no tiered ramp-up. In our GCC gratuity comparison, Oman pays about 40% more than the UAE–Qatar–Bahrain cluster: 25,000 vs 17,500 at 5 years, and 50,000 vs 42,500 at 10 years, on a 5,000 salary.
Is gratuity calculated on basic salary in all Gulf countries?
Almost. The UAE, Qatar, Kuwait, Bahrain and Oman all calculate gratuity on basic salary only — allowances are excluded. Saudi Arabia is the exception: it uses the 'actual wage', which includes basic salary plus fixed allowances such as housing and transport.
Do I lose my gratuity if I resign in the Gulf?
In the UAE, Qatar and Bahrain, no — resignation changes nothing. In Saudi Arabia, resigning with under 2 years gives nothing, 2–5 years gives one-third, 5–10 years gives two-thirds, and only 10+ years gives the full amount. Kuwait is gentler: nothing under 3 years, half for 3–5 years, two-thirds for 5–10 years, full at 10+. In Oman it depends on your contract track.
What is the minimum service needed for gratuity in GCC countries?
Generally one full year of continuous service. If you leave before completing a year, you usually receive no gratuity in any of the six GCC countries.
Why does Kuwait divide the salary by 26 instead of 30?
Kuwaiti labour practice treats the month as 26 working days for gratuity purposes. On the same salary this pays about 15% more than the ÷ 30 method used in the UAE, Qatar and Bahrain — always check that your final settlement uses ÷ 26.
Where can I calculate my gratuity for each GCC country?
Use the free calculators on this site — one for each country, applying the exact local formula: the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman gratuity calculators.
Does overtime or a bonus count toward gratuity in the Gulf?
No. In all six GCC countries, overtime, bonuses and commissions are excluded from the gratuity calculation. Only Saudi Arabia's 'actual wage' adds fixed allowances such as housing and transport — variable pay never counts anywhere.
Can my employer pay less than the legal gratuity formula?
No. These formulas are statutory minimums. Your contract can promise more — Qatar's law explicitly allows a higher agreed rate — but never less. If your final settlement is short, file a complaint with the labour ministry or labour court in your country.
Work out your own amount
Enter your dates and salary to see your end-of-service pay instantly.
More questions
- UAE gratuity calculator
- Saudi gratuity calculator
- Qatar gratuity calculator
- Kuwait gratuity calculator
- Bahrain gratuity calculator
- Oman gratuity calculator
Sources
This GCC gratuity comparison is based on the labour laws listed below. Labour laws are amended from time to time; always check the official gazette of the relevant country. This guide is for information only, not legal advice.
- UAE — Federal Decree-Law No. 33 of 2021 (Article 51). Independent GCC-wide comparison: GCC end-of-service gratuity compared.
- Saudi Arabia — Labour Law, Articles 84–85. Official: Ministry of Human Resources and Social Development — End of Service Benefits.
- Qatar — Labour Law No. 14 of 2004 (Article 54). Verified reference: Qatar gratuity calculator 2026 (Ministry of Labour guidance).
- Kuwait — Labour Law No. 6 of 2010 (Articles 51–53). Verified reference: Kuwait indemnity calculator and Articles 51–54 guide.
- Bahrain — Labour Law No. 36 of 2012 (Article 116). Legal reference: ICLG Employment & Labour Laws — Bahrain.
- Oman — Labour Law (Royal Decree No. 53/2023). Further reading: GCC end-of-service gratuity compared.
