Highlights from the 2025 GCC end-of-service benefits survey
There’s an ongoing shift in how end-of-service benefits (ESB) are structured and delivered in the Gulf Cooperation Council (GCC) countries. Governments are actively reforming their ESB frameworks to move toward more sustainable funded arrangements — aimed at safeguarding employee entitlements and strengthening long-term financial resilience for both employers and employees.
Nearly all organisations operating in the GCC (96%) provide ESB to expatriates as mandated. And although legislation only mandates ESB for expatriates, 74% of respondents to our survey choose to extend these benefits to local GCC nationals as well.
The rationale for providing GCC is largely strategic; nearly two-thirds (61%) of organisations cite attracting and retaining key talent as the primary driver (Figure 1).
Over the past decade, ESB liabilities have grown sharply, primarily driven by primarily due to an increase of headcount (56%), longer employee tenure (39%) and rising references wages (34%).
One in five (20%) of organizations report liabilities exceeding USD 50 million, up from 6% a decade ago (Figure 2). Overall, the results show that 85% of organisations still have unfunded arrangements for their ESB, which could pose a risk to employees exposed to financial risk during economic downturns, and to employers as they may put sudden pressure on cashflows.
Yet, fewer than 1 in 5 employers plan to move to a funded model in the next three years.
This figure presents various funding arrangements used by organizations across the GCC, showing the percentage split between those already “in place” and those “planning or considering” implementation.
Employers in the GCC are signaling a shift toward more flexible and employee-focused benefits, considering the following plan designs:
These enhancements aim to deliver greater transparency, portability, and long-term value for employees.
For more detailed findings, please complete the form on the right to access the full report.
