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.
| Country | Rate | Salary used | Resignation | Cap | Law |
|---|---|---|---|---|---|
| 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
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.