UAE vs Saudi End of Service Comparison
See what the same salary and years of service earn at the end of a job in the UAE and in Saudi Arabia, under each country's labour law.
Estimate only. Not legal advice. Contracts can give more than the legal minimum. For one country in detail, use the UAE gratuity calculator or the Saudi end of service calculator.
The rules side by side
| UAE (Decree-Law 33 of 2021) | Saudi Arabia (Labor Law) | |
|---|---|---|
| Pay used | Basic salary only (Art. 51) | Full wage: basic plus allowances (Art. 2, 84) |
| First 5 years | 21 days of basic a year | Half a month of wage a year |
| After 5 years | 30 days of basic a year | One month of wage a year |
| Minimum service | 1 year (Art. 51) | None in Art. 84; 2 years if you resign (Art. 85) |
| If you resign | No reduction | 1/3 from 2 to 5 years, 2/3 from 5 to 10, full from 10 (Art. 85) |
| Maximum | Two years of wage (Art. 51, clause 6) | No maximum in Art. 84 |
| Paid within | 14 days (Art. 53) | One week; two weeks if you end the contract (Art. 88) |
Both convert a monthly wage to a daily one by dividing by 30, a convention rather than a rule in either law.
Example: 8 years, AED 10,000 basic + AED 5,000 allowances
- • UAE: (5 × 21 + 3 × 30) = 195 days × 333.33 = AED 65,000.00, the same if you resign.
- • Saudi, contract ended: (5 × 0.5 + 3 × 1) = 5.5 months × 15,000 = AED 82,500.00.
- • Saudi, you resign after 8 years: two thirds = AED 55,000.00.
Frequently asked questions
Which pays more end of service, the UAE or Saudi Arabia?expand_more
It depends on how much of your package is allowances and how you leave. The UAE pays more days per year but only on basic salary. Saudi Arabia pays fewer days per year but on your full wage, so with large allowances it usually pays more. If you resign, Saudi Arabia cuts the award before 10 years and the UAE does not. Example: 8 years on AED 10,000 basic and AED 5,000 allowances gives AED 65,000.00 in the UAE and AED 82,500.00 in Saudi Arabia if the employer ends the contract.
Why does the UAE use only basic salary?expand_more
Article 51 of Federal Decree-Law No. 33 of 2021 calculates gratuity on the basic wage. The Saudi Labor Law uses the wage as Article 2 defines it: basic wage plus allowances and other regular pay.
How are dirhams and riyals converted?expand_more
Both currencies are pegged to the US dollar: AED 3.6725 and SAR 3.75 per dollar. That gives 1 AED = 1.0211 SAR. Banks and exchange houses use slightly different rates, so you can change the rate in the calculator.
Does this apply to everyone?expand_more
It is for private-sector workers under each country's labour law. UAE nationals get end of service through the pension law instead (Article 51, clause 1). Domestic workers and government employees follow other rules in both countries.
Source
UAE Federal Decree-Law No. 33 of 2021, Articles 51 and 53. Saudi Labor Law (Royal Decree M/51), Articles 2, 84, 85 and 88; the 2025 amendments did not change Articles 84 to 88. Exchange rate from the Central Bank of the UAE (AED 3.6725 per US dollar) and the Saudi Central Bank (SAR 3.75 per US dollar). Checked 18 October 2026.
Read the official text:Federal Decree-Law No. 33 of 2021 (UAE Legislation portal) · Saudi Labor Law, Royal Decree M/51 (HRSD, English PDF) · Central Bank of the UAE: daily exchange rates (US dollar 3.6725), August 2026 (PDF) · Saudi Central Bank: official rate of 3.75 riyals to the US dollar