Overview of Middle East gratuity
This table describes the calculation of a resource's gratuity pay based on country-specific
calculation, termination reason and length of service.
Home country | Termination reason | Length of service (LOS) | Calculation |
---|---|---|---|
UAE | Resigned | Less than 1 year | No gratuity |
Resigned | 1 year but less than 3 years | ((Basic monthly salary * 12 / 365) * 7 * LOS) | |
Resigned | 3 years but less than 5 years | ((Basic monthly salary * 12 / 365) * 14 * LOS) | |
Resigned | 5 years and more | ((Basic monthly salary * 12 / 365) * 21 * LOS) | |
Terminated | Less than 1 year | No gratuity | |
Terminated | 1 year but less than 5 years | ((Basic monthly salary * 12 / 365) * 12 * LOS) | |
Terminated | 5 years or more |
((Basic monthly salary * 12 / 365) * 21 * 5)) + ((Basic monthly salary * 12 / 365) * 30 * (LOS -5)) |
|
Against the law | No gratuity | ||
Qatar | Resigned | Less than 1 year | No gratuity |
Resigned | 1 year or more | ((Basic monthly salary * 12 / 365) * 21 * LOS)) | |
Against the law | No gratuity | ||
KSA | Resigned | Less than 2 years | No gratuity |
Resigned | 2 years up to 5 years | (((Basic monthly salary + monthly allowance) * 0.5 / 3) * LOS) | |
Resigned | Greater than 5 years to less than 10 years |
((((Basic monthly salary + monthly allowance) * 5 / 2) * 2/3) + ((Basic monthly salary *(LOS – 5)) * 2/3)) |
|
Resigned | 10 years or more |
((((Basic monthly salary + monthly allowance) * 5) / 2) + ((Basic monthly salary + monthly allowance) * (LOS – 5))) |
|
Terminated | Less than or equal to 5 years | (((Basic monthly salary + monthly allowance) * LOS) /2) | |
Terminated | Greater than 5 years |
((((Basic monthly salary + monthly allowance) * 5) / 2) + ((Basic monthly salary + monthly allowance) * (LOS – 5))) |