When your Gulf nursing contract ends, you are usually entitled to an end-of-service benefit, often called gratuity. For a nurse who has worked several years in Saudi Arabia, the UAE, Qatar, Kuwait, Oman or Bahrain, it can be worth several months’ salary, and it is one of the most valuable parts of a Gulf package. But each country calculates it differently, some use basic salary and others full wage, and resigning early can reduce or cancel it in some countries. Bahrain and Oman are also moving from lump sums to savings schemes.
This guide explains end-of-service gratuity country by country, with worked examples, what changes if you resign, recent reforms, and how to protect what you are owed.
Imagine you are finishing five years as a dialysis nurse in Riyadh. You hand in your resignation, book your flight and expect a large final payment. Then HR tells you the amount is far smaller than you calculated, because your contract treats your housing allowance differently and the law reduces gratuity for resignation. Knowing the rules from the start, and keeping your paperwork, would have helped you plan, and challenge any errors.
This guide is general information, not legal advice. Labour laws, ministerial decisions and contract terms change. Always check your contract and the current law with the labour ministry, or get advice from a qualified professional, before relying on any figure.
What is end-of-service gratuity?
End-of-service gratuity (EOSG) is a payment employers in most Gulf countries must make to employees, especially expatriates, when their employment ends. It recognises length of service and partly replaces the pension contributions that expatriates usually do not receive. It is usually calculated on your last wage, multiplied by a number of days, weeks or months for each year of service.
Key questions for every country:
- Is it calculated on basic salary only, or on your full wage including fixed allowances?
- How many days or months do you earn for each year of service?
- Is there a cap?
- Does resignation reduce it?
- Is it paid by the employer as a lump sum, or through a savings or social insurance scheme?
Gratuity rules by country
| Country | Basis | Rate | Cap | If you resign |
|---|---|---|---|---|
| Saudi Arabia | Last wage (basic plus regular fixed allowances) | Half a month’s wage per year for the first 5 years; one month per year after | None stated | Under 2 years: nothing. 2–5 years: one third. 5–10 years: two thirds. 10+ years: full |
| UAE | Basic salary | 21 days per year for the first 5 years; 30 days per year after (after 1 full year) | Two years’ pay | Full amount under the current law, after at least one year of service |
| Qatar | Basic salary | At least 3 weeks’ pay per year (after 1 full year) | None stated | No reduction |
| Kuwait | Full wage | 15 days per year for the first 5 years; one month per year after | 18 months’ pay | Reduced on a sliding scale for shorter service; check current rules |
| Oman | Basic salary | At least one month’s basic pay per year (revised rate under the 2023 Labour Law) | None stated | No reduction |
| Bahrain | Basic pay (plus any social allowance) | Half a month per year for the first 3 years; one month per year after | None stated | Full amount; service since 1 March 2024 is paid through the Social Insurance Organisation |
Saudi Arabia
Under the Saudi Labour Law (Articles 84 and 85), gratuity is half a month’s wage for each of the first five years and a full month’s wage for each year after that. It is calculated on your last wage, which generally includes regular fixed allowances, so check how your contract defines “wage”.
Resignation: if you resign, you receive nothing for under two years, one third for two to five years, two thirds for five to ten years, and the full amount after ten years. There are exceptions: a woman who ends her contract within six months of her marriage contract or within three months of giving birth keeps the full amount, and an employee who leaves because the employer breached its obligations is also entitled to the full amount.
Example: a nurse with a last wage of SAR 8,000 a month, whose contract ends after seven years at the employer’s choice or at the natural end of a fixed-term contract, would receive 5 × 0.5 months + 2 × 1 month = 4.5 months, about SAR 36,000. If the same nurse resigned after seven years, the two-thirds rule would apply, about SAR 24,000.
United Arab Emirates
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), expatriate employees who complete at least one year of continuous service receive 21 days’ basic salary for each of the first five years and 30 days’ basic salary for each additional year. Total gratuity cannot exceed two years’ pay. It is calculated on basic salary only, not housing or transport allowances, which is why the split between basic and allowances in your contract matters so much.
The UAE has also introduced a voluntary savings scheme in which participating employers pay monthly contributions into an investment fund instead of a lump-sum gratuity for the years covered. Free zones such as the DIFC run their own schemes.
Example: a nurse with basic salary of AED 6,000 a month (daily rate AED 200) leaving after seven years would receive (5 × 21) + (2 × 30) = 165 days, about AED 33,000.
Qatar
Qatar’s Labour Law (Law No. 14 of 2004, as amended) entitles employees who complete at least one year of service to at least three weeks’ basic wage for each year of service. Contracts can provide more. Qatar’s labour reforms since 2020 have made it easier to change employers, but you should still confirm your final settlement, including gratuity, unused leave and flights, with HR in writing.
Example: basic salary of QAR 7,000 a month, seven years’ service: weekly basic wage is roughly QAR 1,615, so 21 weeks is about QAR 33,900.
Kuwait
Under Kuwait’s private sector Labour Law, gratuity is 15 days’ wage for each of the first five years and one month’s wage for each year after, calculated on full wage, with a cap of 18 months’ pay. Resignation reduces gratuity for shorter service on a sliding scale; published summaries of the exact bands differ, so confirm them with the Public Authority for Manpower. A woman who resigns within a year of marriage keeps the full amount.
Many nurses in Kuwait work for the Ministry of Health under government contracts, whose end-of-service terms may differ from the private sector law. Check your contract.
Oman
Oman’s Labour Law (Royal Decree 53/2023) increased the gratuity rate for expatriate employees to at least one month’s basic wage for each year of service for service from 31 July 2023, with earlier service calculated under the previous rules, so long-serving nurses may need a split calculation. Oman plans to replace the lump-sum gratuity with a savings system funded by employer contributions of 9% of basic salary; under Royal Decree 60/2025, this has been deferred to no later than 19 July 2027. Until then, the employer-paid gratuity applies.
Bahrain
Since 1 March 2024, end-of-service benefits for expatriate employees in Bahrain’s private sector are paid through the Social Insurance Organisation (SIO). Employers pay monthly contributions of 4.2% of pay for the first three years and 8.4% after that, and employees claim their benefit from the SIO when they leave. Service before 1 March 2024 remains payable by the employer as a lump sum, calculated at half a month’s pay for each of the first three years and a month’s pay for each year after.
What else should be in your final settlement?
- Unpaid salary up to your last working day.
- Payment for unused annual leave, if your contract and law allow.
- Your return flight ticket home, if your contract includes it.
- Any outstanding overtime or allowances.
- Deductions only for amounts that are lawful and documented, such as loans you agreed to.
How to protect your gratuity
- Read your contract before signing: check how “basic salary” and “wage” are defined, and whether allowances count.
- Keep records: contracts, renewals, payslips, bank statements and any changes in salary or job title.
- Know your start date: continuous service is what counts. Gaps or new contracts can affect the calculation.
- Plan your exit: in Saudi Arabia and Kuwait, the timing of resignation can significantly change your gratuity. Ask HR in writing how your final amount will be calculated before you resign.
- Request a written settlement statement showing each component.
- Do not sign a “full and final settlement” receipt until you have checked the figures.
- Raise disputes through official channels: each country has a labour ministry complaints or mediation process. Embassies of major source countries also have labour attachés who can advise.
Gratuity and your long-term finances
Because most Gulf countries do not provide pensions for expatriates, gratuity is often a nurse’s main long-term saving from a Gulf career. Many financial advisers suggest treating it as retirement or emergency money rather than spending it on arrival home. Consider combining it with regular savings during your contract, and see our guide to a money plan for nurses moving abroad.
Common mistakes nurses make with gratuity
- Accepting a low basic salary with high allowances without realising that gratuity in the UAE, Qatar, Oman and Bahrain is calculated on basic salary only.
- Resigning a few months too early in Saudi Arabia or Kuwait, just before crossing a service threshold that would have increased the payout.
- Losing continuity of service by signing a new contract with a different employer entity within the same hospital group without checking whether earlier service is carried over.
- Signing a settlement receipt before checking the figures.
- Leaving the country before the final settlement is paid, which makes disputes much harder to resolve.
- Not keeping payslips, which are essential evidence of your wage history.
Checklist before you resign
- Confirm your exact service start date and any breaks in service.
- Check your contract’s notice period and give notice in writing.
- Ask HR for a written estimate of your final settlement, including gratuity, leave encashment and flight.
- Check whether waiting a few more weeks or months would move you into a higher gratuity band.
- Clear any loans or advances properly and get written confirmation.
- Collect your experience certificate and good standing letters for future applications.
- Make sure your final settlement is paid into your bank account before you close it or leave the country.
- Cancel your residence visa correctly so that future visas are not affected.
Government versus private sector contracts
Many nurses in the Gulf work for ministries of health or government hospital corporations. These employers may follow civil service regulations or their own contract terms rather than the private sector labour law. Some offer more generous end-of-service benefits; others calculate them differently. If you work in the public sector, ask HR for the exact policy that applies to your contract type, and keep a copy of any HR policy document you are given.
Worked comparison: the same nurse in six countries
To see how much the rules differ, imagine a nurse leaving after seven years when the contract ends (not resigning), with a monthly wage made up of basic salary equal to 60% and allowances equal to 40%. Using the formulas above:
- Saudi Arabia: 4.5 months of full wage.
- UAE: 165 days of basic salary, about 5.5 months of basic, or about 3.3 months of full wage in this example.
- Qatar: 21 weeks of basic salary, roughly 4.9 months of basic, or about 2.9 months of full wage.
- Kuwait: 75 days plus 2 months of full wage, about 4.5 months of full wage.
- Oman: about 7 months of basic salary for service under the revised rate, roughly 4.2 months of full wage.
- Bahrain: 5.5 months of basic salary for service under the old rules, partly paid through the SIO for service since March 2024.
These are simplified illustrations; real calculations depend on dates, contract terms, earlier service rules and the exact definition of wage. They show why the split between basic salary and allowances in your contract can matter as much as the headline salary.
Frequently asked questions
How is gratuity calculated for nurses in Saudi Arabia?
Half a month’s wage for each of the first five years and one month’s wage for each year after, on your last wage. Resignation reduces it if you have less than ten years of service.
Do I lose my gratuity if I resign in the UAE?
Under the current UAE Labour Law, employees who complete at least one year of service are entitled to gratuity on resignation, calculated on basic salary.
Is gratuity calculated on basic salary or total salary?
It depends on the country: basic salary in the UAE, Qatar, Oman and Bahrain; full wage in Saudi Arabia and Kuwait. Your contract definitions also matter.
What happens to gratuity in Bahrain now?
For service since 1 March 2024, it is paid through the Social Insurance Organisation from employer contributions.
Do government hospital nurses get the same gratuity?
Not always. Government health ministries may have their own contract terms. Check your contract and HR policies.
But what if my employer refuses to pay?
Start with a polite written request to HR for a breakdown of your final settlement. If the issue is not resolved, file a complaint with the labour ministry or court in that country, and contact your embassy’s labour office for guidance. Keep copies of everything, and act before you leave the country if possible, because disputes are much harder to pursue from abroad.
Your next step: Find your contract today and write down your start date, basic salary and allowances, then use the table above to estimate your gratuity if you left at the end of your current contract.
Related: Nursing in the Middle East: complete guide · How to read a nursing job contract abroad · How to negotiate a job offer abroad
Sources: Saudi Labour Law (Arts. 84–85); UAE Federal Decree-Law No. 33 of 2021 and Cabinet Resolution 96/2023 (savings scheme); Qatar Labour Law No. 14 of 2004; Kuwait Private Sector Labour Law; Oman Labour Law (Royal Decree 53/2023) and Royal Decree 60/2025; Bahrain Social Insurance Organisation (Resolution 109/2023); comparative GCC end-of-service guides (2026). Not legal advice.
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