Quick Facts
- Minimum entitlement: at least 3 weeks of basic wage for each year of service after completing 1 year
- Basis of calculation: last basic wage at the date of entitlement
- Partial years: paid proportionally
- No gratuity if dismissed for reasons listed under Article 61
- Payment timing: all dues should be paid by the day after termination
What is end-of-service gratuity
End-of-service gratuity is a lump sum that the employer pays when employment ends. After completing one year with the same employer, a worker is entitled to gratuity of not less than three weeks ‘ wages for every year of service, with fractions paid in proportion to time served. The law calculates this on the worker’s last basic wage.
Who is eligible
- Employees who have completed one year or more with the same employer.
- Periods are treated as continuous if the worker returns within two months after a break not related to misconduct.
When gratuity can be denied
If the employer dismisses a worker for the reasons listed under Article 61 (for example, repeated serious violations or fraud), gratuity may be withheld. Keep records of warnings and correspondence for any dispute.
How gratuity is calculated
The law sets a floor: 3 weeks of basic wage per year. The common method:
Gratuity = Last basic monthly wage × (21 ÷ 30) × total years of service
- Use 21 days per year as three weeks.
- Use 30 as the wage divisor, as the basic monthly wage divided by 30 gives the daily wage.
- Count partial years proportionally. The calculation must be based on the last basic wage.
Sample calculation 1
- Last basic salary: QAR 6,000
- Service: 4 years 6 months
- Daily basic wage: 6,000 ÷ 30 = QAR 200
- Per year gratuity: 200 × 21 = QAR 4,200
- Total service factor: 4.5 years
- Gratuity due: 4,200 × 4.5 = QAR 18,900
Sample calculation 2
- Last basic salary: QAR 3,500
- Service: 2 years
- Daily basic wage: 3,500 ÷ 30 ≈ QAR 116.67
- Per year gratuity: 116.67 × 21 ≈ QAR 2,450.07
- Gratuity due: ≈ QAR 4,900.14
Note: Employers may offer more generous schemes by contract or policy, but not less than the legal minimum. If an employer runs a formal retirement or pension scheme, the worker may have a choice between that scheme and gratuity, subject to the law.
What counts as basic wage
Gratuity is based on basic wage only, not on allowances unless the contract defines them as part of basic wage. Check your last attested contract to confirm the basic figure used in payroll.
When should payment be made?
If the contract ends, the employer should pay all dues by the end of the day after termination. If the worker leaves without the required notice, payment must be made within seven days from the date of leaving.
What if my dues are unpaid
Start with a written request to HR or payroll. If there is no response, file a complaint with the Ministry of Labour. Individual labour disputes are heard under fast-track procedures set in the law. Keep copies of your contract, QID, final settlement, and contact details ready.
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FAQ
At least 3 weeks of basic wage for every year after the first year. Use last basic wage × (21 ÷ 30) × years, with partial years paid proportionally.
It is based on the last basic wage at the date of entitlement unless your contract clearly defines another basis.
All dues should be paid by the day after termination. If an employee leaves without giving required notice, payment should be within seven days.
Gratuity can be withheld if the worker is dismissed for reasons listed under Article 61. In other cases, unpaid dues can be pursued with the Ministry of Labour.
Entitlement starts after one year with the same employer. After that, any fraction of a year is paid proportionally.
If a retirement system is in place, a worker may choose between gratuity and the pension under that system, subject to the law and plan rules.
References
- Qatar Labour Law (Law No. 14 of 2004, as amended) – provisions on gratuity, payment timing, and Article 61 dismissal rules.
- End-of-service calculation request service on the Hukoomi portal. (hukoomi.gov.qa)
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