Understanding End of Service Benefits in the Gulf: What Every Employee Should Know
What Is End of Service Benefit (EOSB)? The End of Service Benefit (EOSB) often called "gratuity" is a lump-sum payment granted to employees when their contract ends or when they leave a company after completing a certain period of service. It’s not a bonus it’s a legal entitlement under Gulf labour laws and serves as a financial safety net after years of service. Country by Country EOSB Summary Each Gulf nation has distinct rules based on its labour regulations: Country Standard Eligibility Calculation Formula Qatar After 1 year of service Approx. 3 weeks’ basic pay per year of service. UAE Minimum 1 year (post 2022) 21 days/year for first 5 years; 30 days/year thereafter; none if resign before 1 year. Saudi Arabia Varies with tenure Entitlement increases with length of service; full gratuity after 5 years. Oman/Bahrain/Kuwait Varies by company policy Typically between 3 to 6 months’ salary , depending on the terms in your contract. Key Reminder: Always check your ...