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Gulf NRIs

End-of-service gratuity calculator

What a Gulf employer owes you when you leave, under each country’s labour law.

Where you work

How the job ends

Your gratuity

Service

Earned

Paid on resigning

What this means

  • The law caps the total, so service beyond this point adds nothing.
  • This is the federal rule. DIFC employers pay into the DEWS savings plan instead, and some government and free-zone employers have their own schemes.
  • Since March 2024 the Social Insurance Organization pays it from your employer's monthly contributions.
  • Your contract can give more than this minimum, never less. Unpaid salary, leave and notice pay are owed on top.
  • Paid while you are still an NRI, it is not taxed in India. An NRE account keeps it repatriable and its interest tax-free.
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The statutory minimum for a private-sector expatriate employee, as an estimate. Your employer's final settlement, or the labour ministry, decides the amount.

NRIWallah team

Updated October 2026 · 2 min read

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What the law guarantees

Every Gulf state requires a private-sector employer to pay an expatriate a lump sum when the job ends. It is the region’s substitute for a pension: most of these countries do not enrol foreign workers in their social security schemes, so the gratuity is often the largest single payment of a working life in the Gulf.

The formulas differ more than most people expect. The UAE pays 21 days of basic wage for each of the first five years and 30 days after that, up to two years’ pay. Saudi Arabia pays half a month for each of the first five years and a month after that, but on your full wage, housing allowance included. Qatar pays three weeks of basic wage a year with no step up. Kuwait and Bahrain step up after five and three years. Oman has paid a month’s basic wage for every year since its 2023 labour law.

Basic wage or full wage

Whether allowances count changes the answer more than any other input. In the UAE, Qatar and Oman the gratuity is worked out on basic pay alone, which is often half or less of the package, and many contracts keep basic pay low for exactly this reason. Saudi Arabia, Kuwait and Bahrain use the full monthly wage. Check your contract and payslip for the figure, and enter the one your country’s law uses.

What to do with the money

A gratuity usually arrives in the last weeks before you leave, often in one payment with your final salary and leave pay. If it is going home, an NRE account is the natural place for it: the money stays freely repatriable, and the interest is tax-free in India for as long as you remain an NRI. Before you move it, compare the rate and fee on the remittance comparison for riyals or dirhams; on a large sum, a percentage point of exchange margin costs more than most transfer fees.

If you are moving back for good, the gratuity is one part of a bigger plan. The guide to moving back to India covers what changes with your residence status, your accounts and your tax in the first years home.

Common questions

Not if you receive it while you are a non-resident. India taxes an NRI only on income earned or received in India, and a gratuity for work in the Gulf is neither. If you land back in India and become resident before the money is paid, ask a chartered accountant how your first years count: as RNOR, income earned abroad usually stays outside Indian tax. The RNOR tracker works out those years.
In the UAE, Qatar, Oman and Bahrain it makes no difference. In Saudi Arabia you receive nothing if you resign within two years, a third from two to five years and two thirds from five to ten. Kuwait cuts it in similar steps, starting at three years. After ten years, resigning costs nothing anywhere.
Ask for the settlement in writing with the wage and service dates it uses, and compare them with your contract and payslips. Every Gulf labour ministry takes complaints about unpaid end-of-service benefits, and most have an online channel. Raise it before you cancel your residence visa, while you can still use those services from inside the country.

Every rate and threshold here is sourced, dated and shown on the page — but tax rules change, and we would rather be told than be wrong. Reports go to the team that maintains the tool. If you can point at the official source, that gets it fixed fastest.

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Prefer email? admin@nriwallah.com. How we source and review these numbers is set out in our methodology.

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