How the formulas work
| Country | Law | Formula |
|---|---|---|
| 🇸🇦 Saudi Arabia | Labor Law Art. 84–85 | ½ month wage × first 5 yrs + 1 month wage × further yrs (last wage incl. fixed allowances) |
| 🇶🇦 Qatar | Law 14/2004 Art. 54 | 21 days basic salary × years (min; contract may give more) |
| 🇰🇼 Kuwait | Law 6/2010 Art. 51–53 | 15 days/yr × first 5 yrs + 30 days/yr after (÷26 daily rate; cap 18 months' wage) |
| 🇴🇲 Oman | Labour Law Art. 61 (RD 53/2023) | Pre-Aug 2023: 15 days/yr × first 3 yrs + 1 month/yr after; from Aug 2023: 1 month basic × every yr (cap 24 months) |
Resignation reductions
| Service | 🇸🇦 Saudi | 🇶🇦 Qatar | 🇰🇼 Kuwait | 🇴🇲 Oman |
|---|---|---|---|---|
| Under threshold | <2 yrs: nothing | No reduction | <3 yrs: nothing | No reduction |
| Early years | 2–5 yrs: ⅓ | — | 3–5 yrs: ½ | — |
| Mid years | 5–10 yrs: ⅔ | — | 5–10 yrs: ⅔ | — |
| 10+ years | Full | Full | Full | Full |
Termination by the employer (or contract expiry) always pays the full calculated amount. Minimum 1 year of service is required in every country.
Common mistakes
1. Using basic salary only in Saudi Arabia. The law says "last wage" — basic plus fixed housing/transport allowances. Using basic alone can understate your gratuity by 30–40%.
2. Assuming Qatar rises to 30 days after 5 years. It doesn't — 21 days is the flat legal minimum; only your contract can raise it.
3. Dividing by 30 in Kuwait. Kuwait's daily wage is monthly ÷ 26, not 30 — a small difference that compounds over years.
4. Ignoring Oman's 2023 law change. Service from August 2023 accrues a full month per year — much more generous than the old 15-day rate.