Gulf oil and gas jobs are known for tax-free pay. That is mostly true, but not the whole story. An offer is usually split into a basic salary and allowances. The split affects your overtime, your end-of-service gratuity and sometimes your leave pay.
This guide explains the tax rules in each of the six Gulf countries, how pay packages are built, and how end-of-service gratuity works. We do not publish salary estimates. Where we show salaries, they come from real job ads.
Is your salary taxed?
| Country | Tax on employment income | Source |
|---|---|---|
| UAE | No income tax on individuals | u.ae |
| Saudi Arabia | No income tax on earnings that come only from employment | PwC |
| Qatar | No income tax on salaries, wages and allowances | PwC |
| Kuwait | No personal income tax | PwC |
| Bahrain | No personal income tax | PwC |
| Oman | None today; 5% from 2028 on income above OMR 42,000 a year | Oman Tax Authority |
Oman from 2028
Oman issued its Personal Income Tax Law by Royal Decree No. 56/2025. It applies a 5% rate to individuals whose total income is more than OMR 42,000 a year, and it starts at the beginning of 2028. The Tax Authority says about 99% of Oman’s population will not pay it (Oman Tax Authority). PwC says tax residents, including expats, will be taxed on worldwide taxable income above the threshold, after deductions (PwC). The detailed rules are still being written, so check again before 2028.
Your home country may still tax you
“Tax-free in the Gulf” does not always mean tax-free at home. Some countries tax their citizens or residents on income earned abroad. It depends on your nationality, how many days you spend at home, and your home country’s rules. Rotation workers who spend long periods at home should be especially careful. Check with your home country’s tax authority or a tax adviser.
How a Gulf pay package is built
Most offers have two parts:
- Basic salary. The fixed core of your pay.
- Allowances. Extra fixed amounts for specific costs. Offers may include allowances for housing, transport, food, phone, or work in remote or offshore locations.
Some employers give you housing or camp accommodation instead of a housing allowance. In the UAE, the Labour Law says the employer must provide suitable accommodation or pay an accommodation allowance, in cash or as part of the wage (Article 13 of Federal Decree-Law No. 33 of 2021).
Why the split matters
- UAE: overtime is calculated from the basic wage (Article 19), and gratuity uses basic salary only, without housing, transport and other allowances (u.ae).
- Qatar: gratuity is based on basic salary (ILO).
- Saudi Arabia: the Labor Law defines “wage” as the actual wage, which is the basic wage plus allowances such as those for effort or risk (Article 2), and the end-of-service award uses the last wage (Article 84). The employer and worker may agree to leave out commissions and similar variable pay (Article 86) (Labor Law).
So two offers with the same total can be worth different amounts over several years. Always ask for the split in writing.
Other benefits to compare
- Rotation travel: who pays flights for each rotation, and from where. See our guide to rotation schedules.
- Health insurance: in the UAE, employers must buy health insurance for private-sector employees before applying for or renewing a residence permit (u.ae). Ask whether your family is covered.
- Leave: how many days, and whether rotation days off count as leave.
- Certificates and training: whether the employer pays for courses and refreshers.
- Family status: whether the job allows you to bring your family, and whether there is a family housing or school allowance.
Salaries on our board
The table below comes from jobs on this board where the employer published a salary. We do not estimate or fill gaps. If a city or role has too few published salaries, it is not shown.
Live data from the jobs and companies on this board, as of 4 October 2026.
Yearly salaries stated in active job ads on this board. The median uses the middle of each ad's range. Groups with fewer than 5 salaries are not shown.
By city
| City | Jobs with salary | Median | Range |
|---|---|---|---|
| Lubiatowo-Kopalino | 17 | PLN 207,800 | PLN 109,300 – PLN 536,800 |
| Warsaw | 12 | PLN 208,000 | PLN 109,300 – PLN 338,000 |
By role
| Role | Jobs with salary | Median | Range |
|---|---|---|---|
| Construction & commissioning | 10 | PLN 207,800 | PLN 109,300 – PLN 536,800 |
| Project management & controls | 7 | PLN 207,800 | PLN 143,800 – PLN 251,000 |
Many energy job ads do not include a salary. So treat the table as a sample, not a market average. To see current openings, browse energy jobs in Abu Dhabi, Riyadh and Doha.
End-of-service gratuity in each country
Instead of a pension, Gulf labour laws give most private-sector expat workers an end-of-service payment, often called gratuity. In Qatar, for example, the ILO notes that the law provides no old-age pension for these workers but does give a gratuity (ILO). The rules differ a lot between countries.
| Country | Basic rule | Source |
|---|---|---|
| UAE | 21 days of basic salary per year for the first 5 years, then 30 days per year. At least 1 year of service. Total capped at 2 years’ wage. | u.ae |
| Saudi Arabia | Half a month’s wage per year for the first 5 years, then one month’s wage per year, based on the last wage. | Labor Law, Article 84 |
| Qatar | At least 3 weeks of basic salary per year, after 1 year of service. Part years count in proportion. | ILO |
| Kuwait | For monthly-paid workers: 15 days’ wage per year for the first 5 years, then one month per year, capped at 1.5 years’ wage. | Labour Law No. 6 of 2010, Article 51 |
| Oman | At least one basic wage (one month) per year of service, for workers not covered by the Social Protection Law. | Royal Decree 53/2023, Article 61 |
| Bahrain | Since March 2024, employers pay monthly contributions for non-Bahraini workers to the Social Insurance Organisation (SIO), which pays the gratuity. | WTW |
Details to know
- UAE: the employer must pay gratuity and other dues within 14 days of the end of the contract, and may deduct money you owe. Employers can also join an optional savings scheme instead, paying 5.83% of basic salary a month in your first 5 years and 8.33% after (u.ae).
- Saudi Arabia, if you resign: you get one third of the award after 2 to 5 years of service, two thirds after 5 to 10 years, and the full award after 10 years (Article 85). The employer must settle your dues within one week of the end of the contract, or two weeks if you ended it (Article 88) (Labor Law).
- Kuwait: the law has been amended since 2010, for example by Law No. 17 of 2018 (ILO NATLEX). Check the current rules with the Public Authority for Manpower.
- Bahrain: WTW reports contribution rates of 4.2% of monthly wages for the first three years and 8.4% after, and that employers keep the liability for service before March 2024 (WTW). See the SIO for official details.
A contract can give you more than the legal minimum. Check your contract’s gratuity clause, and keep your payslips.
Questions to ask before you accept
- What is the basic salary, and what is each allowance?
- Is pay monthly all year, or a day rate?
- How are overtime and travel days paid?
- Is accommodation provided, or is there an allowance?
- Who pays flights for each rotation?
- How is my gratuity calculated, and does the employer use a savings scheme?
Frequently asked questions
Do expats pay income tax on oil and gas salaries in the Gulf?
Not in the UAE, Saudi Arabia, Qatar, Kuwait or Bahrain, according to the UAE government and PwC’s tax summaries. Oman will tax individual income above OMR 42,000 a year at 5% from 2028. Your home country may still tax you.
Is the UAE gratuity calculated on basic salary or total salary?
On basic salary. The official UAE portal says allowances such as housing, transport and utilities are not included. You get 21 days of basic salary per year for the first five years and 30 days per year after that, capped at two years’ wage.
How is end-of-service calculated in Saudi Arabia?
Half a month’s wage for each of the first five years, and one month’s wage for each later year, based on your last wage. If you resign, you get a third after 2 to 5 years, two thirds after 5 to 10 years, and the full award after 10 years.
What allowances do oil and gas jobs in the Gulf include?
It depends on the employer. Offers may include housing (or accommodation), transport, food, phone, and allowances for remote or offshore work. Ask for each one in writing, because the split between basic salary and allowances affects overtime and gratuity.