End-of-service gratuity calculator
UAE and Saudi Arabia

Under Federal Decree-Law No. 33 of 2021 (Article 51), a worker who has completed at least one year of continuous service earns 21 days of basic salary for each of the first five years, then 30 days of basic salary for every year after that. The total cannot exceed two years’ basic salary. Only basic salary counts — housing, transport, and other allowances are excluded.

Under Saudi Labor Law Article 84, the award is half a month’s wage for each of the first five years of service, then a full month’s wage for every year after that, with no statutory cap. The wage base is the employee’s "last wage," which can include fixed allowances like housing and transport — not basic salary alone.

In the UAE, no — resignation and employer-initiated termination are calculated identically since the law changed in February 2022. In Saudi Arabia, yes: Article 85 reduces a resigning employee’s award to zero under two years of service, to one third for 2 up to and including 5 years, to two thirds for over 5 and under 10 years, and to the full amount at 10 or more years. Termination in Saudi Arabia always pays the full amount.

For the UAE, it’s strictly the fixed basic salary in the employment contract — no housing, transport, utilities, commissions, bonuses, or overtime. For Saudi Arabia, the statutory wage base is wider (basic pay plus fixed recurring allowances), so this calculator’s basic-salary-only input is a conservative estimate for Saudi if the employee also receives fixed allowances.

The UAE caps total gratuity at two years’ (24 months’) basic salary, no matter how long someone has worked. Saudi Arabia has no statutory cap — the award keeps accruing a full month’s wage per year for every year worked beyond the first five.

No. Both countries have separate, narrowly defined for-cause dismissal rules (UAE Article 44, Saudi Article 80) that can reduce or, with a court ruling, withhold the payout. Those are case-by-case legal determinations this calculator doesn’t attempt to model — it assumes an ordinary termination or resignation.

Checked against official government sources — the UAE’s u.ae portal and Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD) — as of August 2026. We recheck this page whenever either country revises its labor law.

Yes — as your Employer of Record, Remote& calculates and pays out statutory end-of-service entitlements as part of offboarding, for a flat $400 per employee per month. Book a demo to see how it works for your team.