It is the single question that changes your end-of-service figure the most: is the award calculated on your basic salary or your gross? With housing and transport allowances often making up a large share of Gulf pay packets, the answer can shift your settlement dramatically.
The short version: most Gulf end-of-service entitlements are based on the basic salary, but the detail varies by country and by contract.
UAE gratuity under the 2021 law is calculated strictly on the basic salary. Housing, transport and other allowances are excluded, so it pays to know your basic figure rather than your total package.
Saudi awards are based on the agreed wage, which for most private-sector contracts means the basic salary unless your contract states the full wage applies. Qatar similarly works from the basic wage. Always check how your contract defines the wage.
If allowances make up 40% of your pay, calculating on basic rather than gross can reduce your award by a similar proportion. Use each country’s calculator and enter the correct basic figure to avoid an unpleasant surprise.