GCC end-of-service rules compared

The same five years of work can produce very different payments across the Gulf. Here is how the six private-sector laws compare.

CountryRateSalary usedResignationCapLaw
UAE 21 days/year (first 5 years), 30 days/year after Basic salary No reduction 2 years’ wage Article 51
Saudi Arabia Half a month/year (first 5 years), one month/year after Full wage ⅓ (2–5 y), ⅔ (5–10 y), full (10 y+) None Articles 84, 85 and 87 (also 80, 81, 88)
Kuwait 15 days/year (first 5 years), one month/year after Full wage ½ (3–5 y), ⅔ (5–10 y), full (10 y+) 1.5 years’ wage Articles 51 and 53 (also 41)
Qatar At least 21 days (3 weeks) per year Basic salary No reduction None Article 54
Bahrain Half a month/year (first 3 years), one month/year after Full wage No reduction None Article 116
Oman One month basic/year (new law) Basic salary No reduction None Article 61 (formerly Article 39)

Example: 7 years on a monthly salary of 10,000

UAE AED 55,000
Bahrain BHD 55,000
Oman OMR 55,000
Qatar QAR 49,000
Kuwait KWD 48,846
Saudi Arabia SAR 45,000

Same number in each local currency, termination by the employer, salary treated as the wage each law uses. For illustration only.

Basic salary or full wage?

The UAE, Qatar and Oman calculate on basic salary only. Saudi Arabia and Kuwait use the full wage including regular allowances, and Bahrain uses the last wage. This difference alone can change the result by 30–50%.

Domestic workers

Domestic-worker rules are separate everywhere: one month per year in Kuwait, three weeks per year in Qatar, one month per four years in Saudi Arabia, half a month per year (after two years) in Oman, the Labour Law formula in Bahrain, and a contract-based position in the UAE.

Government employees

Gulf nationals in government service are normally covered by pension systems. Expatriate government employees follow civil-service rules and their contracts – for example, one month’s basic salary per year (up to ten months) in Qatar, and the private-sector formula for UAE federal entities.