End-of-service gratuity — how it works.
End-of-service gratuity is the payment an employee receives at the end of employment, calculated per country rules. Here is how it works across the GCC — and what it means for payroll.
End-of-service gratuity — how it works.
End-of-service gratuity is the payment an employee receives at the end of employment, calculated per country rules. Here is how it works across the GCC — and what it means for payroll.
How it is calculated
Rules differ by country — Bahrain and Saudi Arabia base it on basic salary and service duration, with caps. The UAE has its own schedule. Each calculation must be right per the employee’s jurisdiction.
What employers get wrong
The most common errors: calculating on gross instead of basic, missing the cap, and not keeping the service record that the calculation depends on.
What the system should do
Payroll software should track service dates automatically and calculate EOS per country rules — with an audit trail. Ledoo does this natively for Gulf rules.
Straight answers.
Most employees qualify after the minimum service period per country rules. Check the specific law for exceptions.
Yes — Ledoo payroll calculates EOS per Gulf rules and keeps the audit trail.
Generally basic salary plus allowances per the specific rule. Ledoo handles the distinction.
See it on your business.
Book a demo and see EOS calculated correctly.