End-of-service pay: UAE gratuity vs Saudi end-of-service award
The rules below are the ones our UAE Gratuity Calculator and Saudi End-of-Service Award Calculator use, each from its official law text. The amounts table is worked out by those two calculators.
The rules side by side
| UAE (private sector) | Saudi Arabia (private sector) | |
|---|---|---|
| Law | Federal Decree-Law No. 33 of 2021, Article 51 | Labor Law (Royal Decree No. M/51), Articles 84–87 |
| Pay it is based on | Last basic wage (no allowances) | Last wage (commissions can be excluded by contract, Article 86) |
| First five years | 21 days of basic wage per year | Half a month's wage per year |
| Each year after five | 30 days of basic wage per year | One month's wage per year |
| Minimum service | 1 year (nothing under 1 year) | None when the employer ends the contract; 2 years on resignation |
| Cap | Two years' wage (24 × monthly basic) | No cap in Article 84 |
| On resignation | Same formula | Under 2 years: nothing; 2–5 years: 33.33%; over 5 and under 10: 66.67%; 10 years or more: 100% |
| Part years | Counted in proportion | Counted in proportion |
Article 85 shares are one third and two thirds, shown rounded.
Worked amounts for a monthly wage of 10,000
| Years of service | UAE gratuity (AED, basic wage 10,000) | Saudi award, employer ends (SAR, wage 10,000) | Saudi award, you resign (SAR) |
|---|---|---|---|
| 1 | AED 7,000.00 | SAR 5,000.00 | SAR 0.00 |
| 2 | AED 14,000.00 | SAR 10,000.00 | SAR 3,333.33 |
| 3 | AED 21,000.00 | SAR 15,000.00 | SAR 5,000.00 |
| 5 | AED 35,000.00 | SAR 25,000.00 | SAR 8,333.33 |
| 7 | AED 55,000.00 | SAR 45,000.00 | SAR 30,000.00 |
| 10 | AED 85,000.00 | SAR 75,000.00 | SAR 75,000.00 |
| 15 | AED 135,000.00 | SAR 125,000.00 | SAR 125,000.00 |
| 20 | AED 185,000.00 | SAR 175,000.00 | SAR 175,000.00 |
Different currencies and different pay bases (UAE: basic wage only; Saudi: last wage), so compare the rules, not the currency amounts. Enter your own figures in each calculator.
Who these rules apply to
- UAE: for mainland private-sector employees and free zones that follow the federal Labour Law. DIFC and ADGM have their own laws; UAE nationals are covered by pensions law. Employers must pay within 14 days of the contract ending.
- Saudi Arabia: no award is due on dismissal for misconduct (Article 80); a worker who leaves because the employer broke the contract (Article 81) keeps the full award. Leaving for force majeure, or a female worker leaving within 6 months of marriage or 3 months of childbirth, keeps the full award (Article 87).
Calculators behind these tables
Sources and checks
- MOHRE: Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments (official text; Article 1 definitions, Article 51 end-of-service gratuity)
- UAE Government portal: End of service benefits for workers in the private sector (Federal Decree-Law No. 33 of 2021, Article 51)
- Saudi Labor Law (Royal Decree No. M/51), Articles 84–87, English translation published by the Ministry of Human Resources and Social Development
- Ministry of Human Resources and Social Development: end-of-service award rules
Last checked: 17 October 2026. Each table is rebuilt from the calculators' tested code on every release.
Results are estimates for information only and are not financial, tax or legal advice. Check important figures with a qualified professional before you act on them.
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