CodeKitHubWhat Is This Tool?
Gratuity (also called end-of-service benefit or, in Kuwait, indemnity) is a mandatory lump-sum payment owed to employees in Gulf countries when their employment ends, calculated based on basic salary and years of service — separate from any final month's wages or unused leave payout.
In the UAE and Qatar, the formula is 21 days of basic salary per year of service for the first 5 years, rising to 30 days per year for each year beyond 5. In Kuwait, the first 5 years accrue at 15 days per year instead of 21, with the same 30-days-per-year rate applying after 5 years. Bahrain uses the same 15-day rate as Kuwait but with a shorter 3-year tier before the 30-days-per-year rate kicks in.
Oman is different: under the current labour law (Royal Decree 53/2023, effective for contracts from 31 July 2023 onward), gratuity is a flat 30 days (one month) of basic salary per year of service, with no tiering at all. Contracts predating that date instead follow the old tiered formula (15 days per year for the first 3 years, 30 days per year after) — this calculator applies the new flat rate only.
The UAE additionally caps total gratuity at 24 months' basic salary, and Kuwait caps it at 18 months'. The calculation uses basic salary only — housing allowance, transport allowance and other benefits are excluded.
This tool covers the termination / end-of-contract scenario. In some countries (notably Kuwait, under Labour Law Article 53), voluntary resignation before a certain tenure reduces the gratuity to a fraction of the full entitlement — that reduction isn't modeled here, so if you resigned rather than were terminated, your actual amount in Kuwait may be lower than this estimate.
Source: UAE Federal Decree-Law No. 33 of 2021, Qatar Labour Law No. 14 of 2004, Article 54, Kuwait Labour Law No. 6 of 2010, Article 51, Bahrain Labour Law No. 36 of 2012, Article 116, Oman Labour Law Royal Decree No. 53/2023.
Why Use It?
- Covers five Gulf countries in one tool — pick your country from a dropdown instead of hunting for a country-specific calculator.
- Applies the correct day-rate (15, 21, or a flat 30 in Oman) and the statutory cap automatically based on your selection.
- Works for any number of years of service, including fractional years.
- Free and instant — no signup, the calculation runs entirely in your browser.
How to Use
- Select your country — UAE, Qatar, Kuwait, Bahrain or Oman.
- Enter your basic monthly salary (excluding housing, transport and other allowances).
- Enter your total years of service.
- Read your estimated gratuity, in the local currency.
Example
Input
UAE, basic salary AED 10,000/month, 7 years of serviceOutput
Estimated gratuity: AED 55,000.00First 5 years: (10,000 ÷ 30) × 21 × 5 = 35,000. Remaining 2 years: (10,000 ÷ 30) × 30 × 2 = 20,000. Total = 35,000 + 20,000 = 55,000 — well under the 24-month (AED 240,000) UAE cap.
Gratuity formulas at a glance
| Country | Early years | After tier | Cap |
|---|---|---|---|
| UAE | 21 days/year (first 5 years) | 30 days/year | 24 months' salary |
| Qatar | 21 days/year (first 5 years) | 30 days/year | No confirmed cap |
| Kuwait | 15 days/year (first 5 years) | 30 days/year | 18 months' salary |
| Bahrain | 15 days/year (first 3 years) | 30 days/year | No confirmed cap |
| Oman | 30 days/year, flat — no tiering (new law only) | — | No confirmed cap |
Related tools
These calculators cover similar end-of-employment benefits in other countries.
→ Gratuity Calculator (India) · Redundancy Calculator (Ireland)
Frequently Asked Questions
Why does the day rate change after a few years?
UAE, Qatar, Kuwait and Bahrain's labour laws set a lower accrual rate for the early years of employment (5 years for UAE/Qatar/Kuwait, 3 years for Bahrain) and a higher one — 30 days per year — for service beyond that, rewarding longer tenure. Oman is the exception: its current law uses one flat 30-day rate for every year, no tiering.
Why is Kuwait and Bahrain's rate different from the UAE and Qatar?
Kuwait and Bahrain's Labour Laws set the early-years rate at 15 days per year of service, rather than the 21 days used in the UAE and Qatar. The 30-days-per-year rate for service beyond the tier is the same across all four.
Why does Oman work differently?
Oman's labour law changed on 31 July 2023 (Royal Decree 53/2023). For contracts from that date onward, gratuity is a flat 30 days per year with no tiering — simpler than the other Gulf countries. Contracts signed before that date follow the old tiered formula (15 days/year for the first 3 years, 30 days/year after), which this calculator doesn't model — if your contract predates July 2023, your actual amount may differ from this estimate.
Is there a maximum gratuity amount?
Yes in the UAE (capped at 24 months' basic salary) and Kuwait (capped at 18 months'). Qatar, Bahrain and Oman's laws don't specify a confirmed statutory cap in the sources checked for this tool, so no cap is applied to those calculations.
Does this apply if I resigned instead of being terminated?
This calculator models the termination / end-of-contract scenario. In Kuwait specifically, voluntary resignation before certain tenure thresholds (Labour Law Article 53) reduces your gratuity to a fraction of the full amount — if you resigned, your actual Kuwait gratuity may be lower than shown here. The UAE's current labour law (effective 2022) largely removed the old resignation-based reduction.
Is my data stored anywhere?
No. The calculation runs with JavaScript directly in your browser; your salary is never sent to a server or stored anywhere.