Key facts at a glance
After 5 years
QAR 52,500
vs SAR 50,000 in Saudi Arabia
After 10 years
SAR 150,000
vs QAR 105,000 in Qatar
Resign at 8 years
QAR 84,000
vs SAR 73,333 in Saudi Arabia
PayMetric Labs' own modeled estimates on one example package: 15,000 a month basic plus 5,000 in fixed allowances, in each country's currency.
The short answer: for the first five years the two are close, and after that Saudi Arabia pays more if you stay and Qatar pays more if you resign early. Qatar's end-of-service gratuity is a flat three weeks of basic wage for every year. Saudi Arabia's end-of-service award is half a month's wage a year for five years, then a full month a year, on a wage that includes fixed allowances.
On the example package, 10 years of service ends with SAR 150,000 in Saudi Arabia against QAR 105,000 in Qatar. But resign after 8 years and it flips: Saudi Arabia pays two-thirds, SAR 73,333, while Qatar pays the full QAR 84,000.
Work out your own figure in each country.
How the two formulas differ
| Qatar (Article 54) | Saudi Arabia (Articles 84, 85) | |
|---|---|---|
| Rate | At least 3 weeks a year, every year | Half a month a year for 5 years, then 1 month a year |
| Wage it is based on | Last basic wage only | Last actual wage, including fixed allowances |
| Qualifying service | 1 year | None if the employer ends it; 2 years if you resign |
| If you resign | No reduction | One-third from 2 years, two-thirds from 5, full from 10 |
| Cap | None | None |
| Lost entirely | Dismissal under Article 61 | Dismissal under Article 80 |
Two differences do most of the work. The first is the rate after year five: Saudi Arabia doubles to a full month, while Qatar stays at three weeks. Many guides say Qatar rises to four weeks after five years. It doesn't: that rule is for annual leave, and our Qatar gratuity explainer covers where the confusion comes from.
The second is the wage. Qatar counts basic wage only. Saudi Arabia counts the actual wage, so housing and transport allowances that are a fixed part of your pay go into the base. On a package that is three-quarters basic, that alone makes the Saudi base a third larger.
Qatar vs Saudi Arabia end-of-service pay, year by year
The same package in each country: 15,000 basic plus 5,000 fixed allowances a month. Qatar pays the same whether you resign or are let go. Saudi Arabia has two columns.
| Years of service | Qatar | Saudi, employer ends it | Saudi, you resign |
|---|---|---|---|
| 1 year | QAR 10,500 | SAR 10,000 | SAR 0 |
| 2 years | QAR 21,000 | SAR 20,000 | SAR 6,667 |
| 5 years | QAR 52,500 | SAR 50,000 | SAR 33,333 |
| 8 years | QAR 84,000 | SAR 110,000 | SAR 73,333 |
| 10 years | QAR 105,000 | SAR 150,000 | SAR 150,000 |
| 15 years | QAR 157,500 | SAR 250,000 | SAR 250,000 |
| 20 years | QAR 210,000 | SAR 350,000 | SAR 350,000 |
PayMetric Labs' own calculation from the two statutory formulas. Both riyals are pegged to the US dollar at nearly the same rate, so the columns can be read side by side.
What this means if you are choosing between offers
- A two to four year posting you plan to leave yourself: Qatar is worth much more at the end. A Saudi resignation in that window pays only a third.
- A long stay of ten years or more: Saudi Arabia pays more, and the gap widens every year.
- Either way: ask what share of the package is basic wage in Qatar, and which allowances are fixed in Saudi Arabia. Those two lines set the base for everything above.
Both countries charge expatriates no income tax and no social insurance, so monthly take-home doesn't separate them. For recruiters pricing a move between Doha and Riyadh, the end-of-service line is often the biggest difference in the two packages.
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Frequently asked questions
Which pays more at the end of service, Qatar or Saudi Arabia?
It depends on how long you stay and how you leave. On a package of 15,000 basic plus 5,000 in fixed allowances, Qatar pays QAR 52,500 after 5 years and Saudi Arabia pays SAR 50,000 if your employer ends the contract, so they are close. After that Saudi Arabia pulls ahead quickly: SAR 150,000 against QAR 105,000 at 10 years. If you resign before 10 years, though, Saudi Arabia cuts the payout and Qatar does not, and Qatar comes out ahead.
What are the two formulas?
Qatar's Article 54 sets a minimum of three weeks' basic wage for every year of service, at the same rate every year, with no cap. Saudi Arabia's Article 84 pays half a month's wage for each of the first five years and a full month's wage for each year after that, also with no cap.
Doesn't Qatar's rate rise to four weeks after five years?
No. That is a common mistake. Qatar's Labour Law gives four weeks of annual leave after five years (Article 79), but the gratuity in Article 54 stays at a minimum of three weeks a year however long you serve. A contract can promise more than the minimum.
Does resigning reduce the payout?
In Saudi Arabia, yes. Under Article 85 a worker who resigns gets nothing before 2 years, one-third of the award from 2 to 5 years, two-thirds from 5 to 10 years and the full award from 10 years. In Qatar, resigning does not reduce the gratuity once you have a year of service. On the example package, resigning after 8 years pays SAR 73,333 in Saudi Arabia against QAR 84,000 in Qatar.
Are both calculated on the same wage?
No, and this matters as much as the rates. Qatar's gratuity is based on the last basic wage only. Saudi Arabia's award is based on the actual wage, which includes fixed allowances such as housing and transport. So the same total package produces a bigger base in Saudi Arabia, unless the whole package is paid as basic.
Why do my numbers look different from this table?
Usually because your split between basic wage and allowances is different. The table assumes three-quarters of the package is basic. If your Qatar contract has a lower basic wage, the Qatar figure drops in proportion. If your Saudi contract has variable pay that is not a fixed allowance, that part may not count. Check which allowances your contract calls fixed.
Can either payout be lost completely?
Yes. In Qatar, Article 61 lets an employer dismiss without notice and without gratuity for listed serious misconduct. In Saudi Arabia, a dismissal under Article 80 has the same effect. Separately, nothing is due in Qatar before one year of service, and a resignation in Saudi Arabia before two years pays nothing.
Is either payout capped?
No. Both keep accruing for as long as you stay. The UAE is the Gulf market with a cap, at two years' basic salary.
Sources and limits
Qatar: Articles 54 and 61 of Labour Law No. 14 of 2004, read in the English translation held by the ILO. Saudi Arabia: Articles 80, 84 and 85 of the Labor Law, published by the Ministry of Human Resources and Social Development. Checked on 30 September 2026.
The figures are statutory minimums on an example package and ignore contract terms that give more, deductions an employer may claim, and the cases where the full Saudi award is due on resignation for special reasons. An earlier version of this article said Qatar's rate rose to four weeks after five years. That was wrong and was corrected on 2 October 2026. This is general information, not legal advice.
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