What Is EOSB? End of Service Benefit Explained

4 min readLast updated: 2026-10-24

EOSB in One Line

EOSB stands for end of service benefit: the lump sum the labour laws of the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain give you when your job ends, paid by your employer (in Bahrain, partly by the SIO). It is worked out from your years of service and your wage. You will also see it called gratuity, end of service award, ESB or indemnity, depending on the country. In Arabic it is مكافأة نهاية الخدمة.

To see your own figure, use the calculator for the UAE, Saudi Arabia, Kuwait, Qatar, Oman or Bahrain.

The same steps in every Gulf country. The rate, the wage and the resignation rule change, as the table below shows.

EOSB in Each Gulf Country

Each country has its own name, article and rate.

Country	What the law calls it	Law and article	The basic rule	If you resign
UAE	End of service benefits, usually called gratuity	Decree-Law 33 of 2021, Art. 51	After 1 year: 21 days' basic wage a year for the first 5 years, 30 days a year after, with a cap of 2 years' wage (Art. 51(6))	No cut (Art. 51)
Saudi Arabia	End-of-service award (ESB)	Labour Law, Arts. 84 and 85	Half a month's wage a year for the first 5 years, a month a year after, on your last wage (Art. 84)	Under 2 years nothing; 2 to 5 years one third; over 5 to under 10 years two thirds; 10 years or more full (Art. 85). Full in the Art. 87 cases.
Kuwait	Terminal service indemnity	Law 6 of 2010, Arts. 51, 53 and 55	15 days' wage a year for the first 5 years, a month a year after, capped at 1.5 years' wage, if paid monthly (Art. 51). Wage includes periodic allowances (Art. 55).	Open-ended contract: under 3 years nothing; 3 to under 5 years half; 5 to under 10 years two thirds; 10 years or more full (Art. 53)
Qatar	End-of-service gratuity	Law 14 of 2004, Art. 54	After 1 full year: at least 3 weeks' last basic wage a year	No cut (Art. 54)
Oman	End-of-service gratuity	Royal Decree 53 of 2023, Art. 61	At least 1 month's basic wage a year, on your final basic wage. For service before 31 July 2023, confirm the rate with the Ministry of Labour.	No cut (Art. 61)
Bahrain	Leaving indemnity; for non-Bahrainis from 1 March 2024, the SIO end of service remuneration	Law 36 of 2012, Art. 116; SIO Regulation (Decision 109 of 2023)	Half a month's wage a year for the first 3 years, then a month a year (Art. 116; Regulation Art. 9). The SIO pays non-Bahrainis for service from 1 March 2024; your employer pays for service before that (Regulation Art. 14).	No cut in the Art. 116 text. For the SIO part, the SIO's own figure is the one that counts.

Tick: covered. Dash: partly covered. Cross: not covered.

Tick: no resignation cut in the law text. Part: Saudi Arabia pays a third or two thirds (Art. 85), Kuwait half or two thirds on an open-ended contract (Art. 53).

From this site's calculators: 2 whole years, open-ended contract, ended by the employer, in months of the wage each law uses. Oman under the current law; Bahrain as the SIO payout for a non-Bahraini.

These rules are for private-sector workers. In DIFC or on a UAE savings scheme? Read the UAE savings scheme and DEWS. Bahraini and GCC nationals in Bahrain: ask the SIO.

What EOSB Is Not

Not a monthly pension. It is paid once, when your service ends (UAE Art. 51, Bahrain SIO Regulation Art. 10). In Bahrain, Art. 116 is for workers outside the Social Insurance Law, and in Oman, Art. 61 applies until the savings system of the Social Protection Law starts.
Not your unused leave. Leave you did not take is paid on top, under its own article: UAE Art. 29(9), on the basic wage; Saudi Arabia Art. 111. See EOSB and unused annual leave.
Not notice pay. If one side does not serve the notice period, it pays the other the wage for that period: UAE Art. 43(3), Saudi Arabia Art. 76. See notice period pay.
Not always paid in full. Some deductions are allowed. In the UAE the employer may deduct only amounts payable under the law or a court judgment (Art. 51(7)). Kuwait (Art. 51) lets the employer deduct debts or loans you owe, and Qatar (Art. 54) amounts you owe the employer.

When the employer ends the contract. Longer limits if you left on your own are in the answer below. UAE Art. 53, Saudi Arabia Art. 88, Qatar Art. 67, Oman Art. 91, Bahrain Art. 40.

Your EOSB, unused leave, notice pay and last wages together make your final settlement. Check what you were paid with the settlement checker.

Frequently Asked Questions

What does EOSB stand for?

End of service benefit. It is the lump sum the law gives you when your job ends in a Gulf country (in Bahrain, partly paid by the SIO). In Saudi Arabia it is often shortened to ESB, and in Arabic it is مكافأة نهاية الخدمة (end of service gratuity).

Is EOSB the same as gratuity?

Yes. Gratuity, end of service award, ESB and indemnity are names for the same payment. The UAE law says end of service benefits, Saudi Arabia end-of-service award, Qatar and Oman end-of-service gratuity, Kuwait terminal service indemnity and Bahrain leaving indemnity.

Do I get EOSB if I resign?

UAE: yes, after 1 year, with no cut (Art. 51). Saudi Arabia: nothing under 2 years, one third from 2 to 5 years, two thirds from over 5 to under 10 years, full from 10 years (Art. 85), and full in the Art. 87 cases. Kuwait, open-ended contract: nothing under 3 years, half from 3 to under 5, two thirds from 5 to under 10, full from 10 (Art. 53). Qatar: yes, after 1 full year, no cut (Art. 54). Oman: yes, no cut (Art. 61). Bahrain: no cut in the Art. 116 text.

When must EOSB be paid?

UAE: within 14 days of the contract end (Art. 53). Saudi Arabia: within 1 week of the end of the contract, or 2 weeks if you ended it (Art. 88). Qatar: before the end of the next working day after the contract ends, or within 7 days if you left without the notice Art. 49 requires (Art. 67). Oman: immediately, or within 7 days if you abandoned the job (Art. 91). Bahrain: immediately, or within 7 days if you left on your own initiative (Art. 40); the SIO's FAQ says it pays its part within 5 working days of your application. Kuwait: ask the Public Authority of Manpower (PAM).

How is EOSB calculated?

Years of service times a yearly rate of days or months of wage, then any resignation cut in Saudi Arabia or Kuwait. Your country's calculator does it from your dates and wage.

Related Tools & Guides

UAE Gratuity Calculator Saudi Arabia ESB Calculator Kuwait Indemnity Calculator Qatar Gratuity Calculator Oman Gratuity Calculator Bahrain End of Service Calculator Resignation Rules in the Gulf

More Guides

UAE vs KSA EOSB Comparison — Key Differences Explained(14 min read)Unemployment Insurance in the Gulf: ILOE, SANED and the Other Schemes(8 min read)Unpaid End-of-Service Pay: How to Resolve a Dispute in the UAE and KSA(8 min read)UAE End of Service Benefit (EOSB) — Complete Guide 2026(15 min read)KSA End of Service Benefit: Complete Guide to Saudi Arabia ESB in 2026(15 min read)What Does Basic Salary Mean for UAE EOSB? — The Most Common Mistake(6 min read)

Sources, updated 24 October 2026

The law and official pages this guide relies on. General information, not legal advice.

Disclaimer: This guide provides general information only and does not constitute legal advice. Laws and procedures may change. Consult a qualified legal professional for advice specific to your situation.