Gulf End-of-Service Calculator — Decimaly

Gulf end-of-service calculator

Work out your gratuity under Saudi or UAE labour law, see the tier-by-tier breakdown, and check what changes if you resign instead of being let go.

Your wage

Monthly wage

Period of service

Use the dates on your contract and your last working day.

Start date

Last working day

Total continuous service —

How the job ended

Reason for leaving

End-of-service entitlement

—

Enter your details to begin

How that figure is reached

Component	Rate	Amount
Fill in the fields above.

If circumstances were different

Points that apply to you

How Gulf end-of-service pay actually works

The calculator above gives you the number. This section explains where it comes from, so you can check it against your own settlement.

The two formulas

Saudi Arabia pays on a progressive scale set out in Article 84 of the Labour Law: half a month of your Actual Wage for each of your first five years, then a full month for every year after that. Actual Wage means basic pay plus fixed allowances — housing and transport count. Part years are paid in proportion, not rounded off.

Saudi Arabia — Article 84 (0.5 × wage × years up to 5) + (1.0 × wage × years beyond 5)

The UAE pays on your basic salary only — allowances are excluded under Article 51 of Decree-Law 33 of 2021. The rate is 21 days of basic pay per year for the first five years, 30 days per year after that, capped at two years’ basic salary in total. You need at least one full year of service to qualify at all.

UAE — Decree-Law 33/2021, Article 51 (basic ÷ 30 × 21 × years up to 5) + (basic ÷ 30 × 30 × years beyond 5), capped at 24 months’ basic

Worked examples

Saudi Arabia — terminated by employer

A worker on an Actual Wage of SAR 9,000 is let go after 6 years and 3 months. First 5 years: 0.5 × 9,000 × 5 = SAR 22,500. The remaining 1.25 years at the full-month rate: 1.0 × 9,000 × 1.25 = SAR 11,250.

Total: SAR 33,750

Saudi Arabia — resigned after 4 years

Same formula first: a worker on SAR 6,000 resigns after 4 years, so the full theoretical award is 0.5 × 6,000 × 4 = SAR 12,000. Because this falls in the two-to-five-year resignation band, Article 85 reduces it to one third.

Total: SAR 4,000

UAE — either resignation or termination

A worker on a basic salary of AED 10,000 completes 7 years. Daily wage: 10,000 ÷ 30 = AED 333.33. First 5 years: 333.33 × 21 × 5 = AED 35,000. Remaining 2 years: 333.33 × 30 × 2 = AED 20,000. Since 2022, how the contract ended makes no difference to this number.

Total: AED 55,000

Where these calculations go wrong

1 Rounding partial years down, in Saudi Arabia. Article 84 requires the leftover months and days to be paid proportionally. An employer who counts only whole years is quietly underpaying.

2 Leaving out fixed allowances, in Saudi Arabia. Housing and transport allowances are part of the Actual Wage the award is based on — using basic salary alone understates the result.

3 Using total salary instead of basic, in the UAE. The opposite problem to Saudi Arabia — Article 51 uses basic salary only, so including allowances overstates the figure.

4 Applying the old resignation penalty, in the UAE. Reduced payouts for resigning under an unlimited contract were repealed when Decree-Law 33 of 2021 took effect in February 2022. Some calculators, and some employers, never updated.

5 Forgetting the UAE cap. Long-serving employees can hit the two-years’-basic-salary ceiling under Article 51 — beyond that point, extra years stop adding to the total.

Saudi Arabia vs UAE, at a glance

	Saudi Arabia	UAE
Based on	Actual Wage (basic + fixed allowances)	Basic salary only
First 5 years	0.5 month per year	21 days per year
Beyond 5 years	1.0 month per year	30 days per year
Resignation	Reduces award — 0 / ⅓ / ⅔ / full by tier	No reduction since Feb 2022
Cap	None set in Article 84	2 years’ basic salary
Minimum service	2 years for any resignation payout	1 full year
Legal basis	Labour Law Art. 84, 85, 87	Decree-Law 33/2021, Art. 51–53

Common questions

Is gratuity based on basic salary or total salary?

It depends on the country. Saudi Arabia uses the Actual Wage — basic pay plus fixed allowances like housing and transport. The UAE uses basic salary only, with allowances excluded.

Does resigning reduce my gratuity in the UAE?

No, not since Decree-Law 33 of 2021 came into force in February 2022. Resignation and termination now pay the same gratuity, provided you’ve completed at least one year of service and served your notice.

Does resigning reduce my gratuity in Saudi Arabia?

Yes. Article 85 sets a tiered reduction: nothing under two years, one third between two and five years, two thirds between five and ten years, and the full award from ten years onward.

Is there a cap on the total amount?

The UAE caps total gratuity at two years’ basic salary under Article 51. Saudi Arabia’s Article 84 sets no equivalent cap.

What happens if I’m dismissed for misconduct?

Both countries allow an employer to withhold the award for serious misconduct — Article 80 in Saudi Arabia, Article 44 in the UAE — but the grounds are narrow and specific. A disputed dismissal can be raised with Qiwa or MOHRE.

Do allowances count toward the Saudi calculation?

Fixed allowances do — housing and transport are part of the Actual Wage. Variable or discretionary payments, like an occasional bonus, generally are not.

Figures follow Saudi Labour Law Articles 84, 85 and 87, and UAE Federal Decree-Law 33 of 2021, Articles 51–53. Labour law changes — confirm your final settlement with Qiwa, MOHRE, or a labour lawyer before relying on it.