Qatar End of Service Benefits: Calculation Guide
End-of-service gratuity in Qatar is simpler than in some other GCC countries. Under Article 54 of Qatar Labour Law No. 14 of 2004, the formula is straightforward: 3 weeks' basic salary for each year of service. This guide explains the calculation, eligibility, and practical considerations.
The Formula
Qatar's gratuity formula is uniform: 3 weeks' basic salary for each complete year of service. Partial years are calculated proportionally. The gratuity is based on the last basic salary — allowances, bonuses, and other benefits are excluded from the calculation.
Formula: (Basic salary / 30 x 21) x years of service
Minimum service: 1 year required
No cap: Unlike the UAE, Qatar has no statutory cap on total gratuity
Practical Example
An employee with a basic salary of QAR 15,000 who has worked for 6 years:
Daily wage: QAR 15,000 / 30 = QAR 500
3 weeks (21 days) per year: QAR 500 x 21 = QAR 10,500/year
6 years: QAR 10,500 x 6 = QAR 63,000
When Gratuity Is Forfeited
The only scenario where gratuity is forfeited is termination for gross misconduct under Article 61. This includes assault on the employer or colleagues, serious negligence causing substantial loss, and disclosure of employer trade secrets.
Unlike Saudi Arabia, Qatar does not reduce gratuity for resignation. Whether you resign or are terminated (for reasons other than gross misconduct), you receive the full gratuity amount.
Payment Timeline
The employer must pay all end-of-service entitlements, including gratuity, within 7 days of the last working day. If the employer fails to pay on time, the employee can file a complaint with the Ministry of Labour or pursue the matter through the Labour Dispute Resolution Committee.