Gratuity & End of Service Benefits Calculator (ESB) in UAE vs KSA: Full Comparison Table
Employee end-of-service benefits are a core part of labor rights in the GCC. While the concept is similar across the region, the End-of-Service Gratuity in the UAE and the End-of-Service Benefits (ESB) in Saudi Arabia follow different rules, formulas, and eligibility criteria.
If you’re an HR professional, employer, or employee working in either market or managing a workforce across both, understanding these differences is essential for compliance, accurate compensation, and workforce planning.
This guide provides a clear, structured comparison of gratuity in the UAE vs ESB in Saudi Arabia, including calculations, entitlements, real examples, legal rules, and a complete, corrected comparison table.
End-of-service gratuity is a lump-sum benefit paid to private-sector and free-zone employees who complete at least 1 year of continuous service (Federal Law No. 33/2021 + 2025 amendments).
From 1 October 2025, employees can voluntarily switch to a fully-funded savings scheme (employer matches up to 5.83%).
Gratuity is calculated based on:
ESB (مكافأة نهاية الخدمة) is a statutory payment due at the end of employment under Royal Decree M/51 (as amended 2023-2024).
Entitlement depends on:
|
Criteria |
UAE |
Saudi Arabia |
|
Official name |
End-of-Service Gratuity |
End-of-Service Benefits (ESB) |
|
Minimum service |
1 year |
2 years if employee resigns; 0 days if terminated or contract ends |
|
Salary used |
Basic salary only |
Basic + fixed allowances (housing, transport) |
|
First 5 years |
21 calendar days per year |
½ month per year |
|
After 5 years |
30 calendar days per year |
1 month per year |
|
Resignation reduction |
No reduction - full gratuity after 1 year |
⅓ (2–5 yrs) → ⅔ (5–10 yrs) → 100% (10+ yrs) |
|
Probation |
No accrual, no payout |
No accrual, no payout |
|
Part-time/hourly |
Pro-rated by calendar days |
Pro-rated by hours worked |
|
Maximum cap |
2 years’ total wages (still in force 2025) |
No statutory cap |
|
Women-specific rule |
None |
Full ESB if resign within 6 months of marriage OR 3 months of childbirth |
|
Misconduct forfeiture |
Full loss only for gross misconduct (MoHRE/court decides) |
Full or partial loss (court decides) |
|
Payment deadline |
Within 14 days (or 12% p.a. penalty) |
Within 7 days (max 14 with agreement) |
|
NEW 2025 UAE option - Voluntary Scheme |
Savings scheme - Employees can opt into an ILO-style savings scheme instead of gratuity (voluntary, employer matches up to 5.83%) |
No equivalent scheme |
Formula
Example
Basic: AED 10,000 | Service: 6 years
5 × 21 days = 105 days → 105 ÷ 30 × 10,000 = AED 35,000
1 × 30 days = 30 days → 30 ÷ 30 × 10,000 = AED 10,000
Total = AED 45,000
Formula
Example
Basic SAR 8,000 + Housing SAR 2,000 = SAR 10,000 total
Service: 6 years, resigned after 10+ years → full award
5 × 0.5 × 10,000 = SAR 25,000
1 × 1 × 10,000 = SAR 10,000
Total ESB = SAR 35,000
If resigned after only 4 years → ⅓ × SAR 30,000 = SAR 10,000
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|
Feature |
Benefit |
|
Auto ESB & gratuity |
100% compliant with UAE + KSA laws |
|
Multi-country payroll |
One platform for the UAE, KSA, Oman, Bahrain… |
|
2025 UAE savings-scheme toggle |
Employees opt-in with one click |
|
Resignation-reduction engine |
Auto-applies ⅓, ⅔, or full KSA award |
|
Fixed-allowance capture |
KSA calculations include housing/transport |
|
Instant employee self-service portal |
See the exact payout before final settlement |
|
Downloadable MoHRE / Qiwa reports |
Zero audit stress |
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Try the Live ESB & Gratuity Calculator
Not exactly. Same purpose, different names & rules.
No, paid on resignation, termination, or contract expiry.
UAE → No. KSA → Yes, if fixed & recurring.
UAE: full loss only for gross misconduct (court/MoHRE).
KSA: full or partial loss (court).
Yes, pro-rated in both countries.
UAE: within 14 days. KSA: within 7–14 days.
Yes, voluntary switch from 1 Oct 2025; employer matches contributions.