End-of-service gratuity (also called end-of-service benefits or EOSB) is a statutory payment that an employer must make to an employee when the employment relationship ends, provided the employee has completed a minimum qualifying period of service. It functions as a form of severance recognized across GCC labour laws.
The amount is generally based on the employee's last basic salary and total years of service, with the formula, the treatment of partial years, and any reductions for resignation versus termination set by each country's labour law. Some countries are moving toward savings or investment schemes that replace or supplement the traditional lump sum.
Because the exact calculation, eligibility, and any deductions depend on the governing labour law and the type of contract, employees should verify their entitlement against the current rules and, where available, official calculators.