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GulfPaycheck

How we calculate — and where every number comes from

Every figure on GulfPaycheck is worked the way the law works, and tied to the exact article behind it. This page shows the method we use across all six countries and the source we verified each rule against — so you can check our working, not just trust it.

Why this page exists. Most calculators give you a number and no way to question it. We'd rather show our sources. If a figure here ever disagrees with your settlement, this is where you can see which law we applied and read it yourself.

How we verify

Before any calculator goes live, we confirm its formula against the relevant labour law — the official text or a credible near-primary source — and record the law, the article, the exact figures, the wage base, the caps, the resignation rules and the date we checked them in an internal accuracy ledger. That "last verified" date is printed on every tool and repeated in the table below. When a law changes, updating the calculators is the work, and we log each change in the changelog rather than quietly editing numbers.

Where a country's primary text isn't cleanly available — Saudi Arabia's statute, or Kuwait's scanned ILO copy — we say so plainly in the notes below and rely on multiple convergent sources that quote the wording, rather than a single secondhand claim.

The six steps behind any GCC figure

The countries differ in their rates and wage bases, but the shape of the calculation is the same everywhere. This is the sequence our calculators follow:

  1. Confirm you're eligible. Most GCC countries require at least one continuous year of service before any end-of-service pay is due. Periods of unpaid leave usually don't count toward that year.
  2. Identify the legal wage base. Find which part of your salary the law uses. The UAE, Qatar and Oman calculate on basic salary only; Saudi Arabia and Kuwait use the fuller wage including fixed allowances. This single choice moves the result more than anything else.
  3. Count your net service. Measure your service to the day and subtract any unpaid leave. For Bahrain and Oman, split your service at the reform cut-off date, because the old and new rules each apply to the period they cover.
  4. Apply the country's accrual rate. Multiply your service by the statutory rate: 21 then 30 days a year in the UAE, half then one month a year in Saudi Arabia and Kuwait, a flat three weeks a year in Qatar, and the two-period hybrids in Bahrain and Oman.
  5. Apply any cap or resignation adjustment. Check the ceiling and the reason for leaving. The UAE caps gratuity at two years' pay and Kuwait at 18 months; Saudi Arabia and Kuwait reduce the award for resignation on a sliding scale, while the UAE, Qatar, Bahrain and Oman don't.
  6. Check it against your contract. The result is the legal minimum. Your contract or employer policy may pay more, so treat the figure as the floor for your conversation with HR, not the ceiling.

Governing law, by country

Each country's headline end-of-service rule, the articles it rests on, and the date we last verified it. Select a country for the full detail and its sources.

Country Governing law Key articles Last verified
UAE Federal Decree-Law No. 33 of 2021 Art. 51 (gratuity), Art. 51(6) (cap), Art. 1 (wage), Art. 44 (dismissal) 14 June 2026
Saudi Arabia Labor Law, Royal Decree M/51 Art. 84 (accrual), Art. 85 (resignation ladder), Art. 87 (exceptions), Art. 2 (wage) 14 June 2026
Qatar Law No. 14 of 2004 Art. 54 14 June 2026
Kuwait Law No. 6 of 2010 Art. 51 (indemnity) 14 June 2026
Bahrain Labour Law 36 of 2012, Art. 116 + Edict 109 of 2023 (SIO) Art. 116 (pre-reform) + Edict 109/2023 (SIO, from 1 Mar 2024) 14 June 2026
Oman Royal Decree 53/2023 (Labour Law), Art. 61 Art. 61 (effective 31 Jul 2023) 14 June 2026

Comparing the actual rates and payouts side by side? See the GCC gratuity comparison.

Country detail & sources

UAE

Governing law
Federal Decree-Law No. 33 of 2021
Key articles
Art. 51 (gratuity), Art. 51(6) (cap), Art. 1 (wage), Art. 44 (dismissal)
Wage base
Basic salary only — allowances excluded
Accrual
21 days' basic pay per year (years 1–5), then 30 days per year
Cap
Two years' basic salary (Art. 51(6))
Resignation
No reduction — exit reason doesn't change the amount
Last verified
14 June 2026

Sources: u.ae — official end-of-service benefits page (official) Federal Decree-Law 33/2021 — official text (PDF) (official) Al Tamimi & Co. — Article 44 no longer forfeits gratuity

Saudi Arabia

Governing law
Labor Law, Royal Decree M/51
Key articles
Art. 84 (accrual), Art. 85 (resignation ladder), Art. 87 (exceptions), Art. 2 (wage)
Wage base
Last wage — basic plus fixed regular allowances
Accrual
Half a month's wage per year (years 1–5), then one month per year
Cap
No statutory cap
Resignation
Reduction ladder — under 2 yrs nil, 2–5 ⅓, 5–10 ⅔, 10+ full
Last verified
14 June 2026

The official HRSD statute URL is still being attached as the gold primary; figures are confirmed against convergent near-primary sources and the statutory Arabic text.

Sources: Saudi EOSB calculator — Art. 84/85/87 tiers law.shangiti.com — Art. 84/85 guide Jisr — resignation EOSB basis

Qatar

Governing law
Law No. 14 of 2004
Key articles
Art. 54
Wage base
Last basic wage — allowances excluded
Accrual
Three weeks' (21 days') basic wage per year, flat — no tiers
Cap
No statutory cap
Resignation
No reduction after one year
Last verified
14 June 2026

Sources: ILO NATLEX — Law 14/2004 (English, PDF) (official) Doha Guides — gratuity calculation swan.qa — gratuity in Qatar

Kuwait

Governing law
Law No. 6 of 2010
Key articles
Art. 51 (indemnity)
Wage base
Total remuneration — basic plus fixed regular allowances
Accrual
15 days' wage per year (years 1–5), then one month per year
Cap
1.5 years' (18 months') wage
Resignation
Reduction ladder — under 3 yrs nil, 3–5 ½, 5–10 ⅔, 10+ full
Last verified
14 June 2026

The official ILO/manpower PDF is a scanned image; the statutory wording (15-day/one-month wage, 18-month cap, resignation fractions) is confirmed via multiple convergent sources.

Sources: ILO NATLEX — Law 6/2010 (English, scanned) (official) Kuwait Up To Date — indemnity TenderScan — indemnity rights

Bahrain

Governing law
Labour Law 36 of 2012, Art. 116 + Edict 109 of 2023 (SIO)
Key articles
Art. 116 (pre-reform) + Edict 109/2023 (SIO, from 1 Mar 2024)
Wage base
Last basic wage plus social allowance
Accrual
Pre-2024: 15 days/yr (yrs 1–3) then 1 month/yr · From 1 Mar 2024: SIO 4.2% then 8.4%
Cap
No cap
Resignation
No reduction (except a misconduct dismissal)
Last verified
14 June 2026

Two-period hybrid: service before 1 March 2024 uses the old employer-paid formula; service after is funded by monthly SIO contributions.

Sources: SIO — official end-of-service gratuity page (official) Al Tamimi & Co. — the new SIO gratuity system Ius Laboris — Bahrain EOS reform

Oman

Governing law
Royal Decree 53/2023 (Labour Law), Art. 61
Key articles
Art. 61 (effective 31 Jul 2023)
Wage base
Basic salary only — allowances excluded
Accrual
Pre-Aug 2023: 15 days/yr (yrs 1–3) then 1 month/yr · From 1 Aug 2023: 1 month/yr flat
Cap
No cap
Resignation
No reduction
Last verified
14 June 2026

Two-period hybrid split at 31 July 2023. A Social Protection Fund savings system (RD 60/2025) replaces direct gratuity from 19 July 2027 — not active yet.

Sources: decree.om — Royal Decree 53/2023 (official) Oman Observer — how gratuity is calculated Muscat Daily — Ministry of Labour clarification

This is the method, not legal advice — your settlement still depends on your contract and employer policy. More about who we are and why accuracy is the brand is on the about page.

These figures are estimates for information only — not legal or financial advice. Your final settlement depends on your contract and employer policy, so confirm binding amounts with the relevant ministry or a qualified professional. Full disclaimer →