How to Calculate End of Service Gratuity in Qatar

Under Qatar's Labour Law, a private-sector worker who completes one year or more of continuous service is generally entitled to an end of service gratuity of at least three weeks basic wage for every year worked. The calculation uses the worker's last basic wage, not total salary including allowances.

In practice, this is applied as: daily basic wage (monthly basic salary divided by 30), multiplied by 21 days, multiplied by years of service, with partial years counted proportionally. For example, a worker on QAR 3,000 basic salary who completes 2 years of service has an estimated minimum gratuity of QAR 4,200. This guide breaks the formula down step by step, with worked examples and a lookup table, and explains where the law allows exceptions.

Qatar Gratuity Calculation at a Glance

Step	Calculation
1. Monthly basic salary	Your last basic wage (not total salary)
2. Daily basic wage	Monthly basic salary ÷ 30
3. 21-day amount	Daily basic wage × 21
4. Years of service	Full years, plus a proportional share for any partial year
= Estimated gratuity	21-day amount × years of service

This is an estimate based on the statutory minimum. Your actual contract, employer policy, or a more generous agreed arrangement can result in a different figure, and certain circumstances under the law can affect entitlement entirely, covered later in this guide.

What Is End of Service Gratuity in Qatar?

End of service gratuity is a lump sum payment a private-sector employer owes an eligible worker when their employment ends, on top of any other amounts due such as unpaid wages or accrued leave. It is set out in Article 54 of Law No. 14 of 2004 (Qatar's Labour Law), published on Qatar's official Al Meezan legal portal.

The law states the employer must pay this gratuity at the date of termination for any worker who has spent one year or more in employment, and that the amount agreed between the parties must not be less than three weeks remuneration for every year of employment, calculated on the worker's last basic wage.

Who Is Eligible for End of Service Gratuity?

Under Article 54, a worker becomes eligible once they have completed one year or more of service with the same employer. There is no cap mentioned in the article on how many years of service can be counted, so the entitlement continues to accrue for as long as the worker remains employed.

• You need at least one full year of continuous service to qualify.
• The law covers private-sector workers under the general Labour Law, the same route covered in our Qatar work visa guide. Domestic workers are covered separately, under their own law, explained later in this guide.
• Qatari nationals working in government or public-sector roles typically fall under separate civil service and pension arrangements rather than this private-sector gratuity rule.

Article 54 also protects continuity of service in one specific situation: if employment ends for a reason other than the serious-misconduct grounds in Article 61, and the worker returns to work for the same employer within two months, the employment is treated as continuous rather than restarting the clock.

Qatar End of Service Gratuity Formula

The law itself states the minimum as three weeks remuneration per year of service, calculated on the last basic wage. In practice, Qatar employers and HR teams commonly convert this into a daily-rate calculation using a 30-day month, which is the standard approach used across gratuity calculations in this guide. Follow the five steps below.

Step 1: Find Your Basic Salary

Use your last basic salary as stated in your employment contract, not your total monthly package. Allowances such as housing, transport, and other benefits are not part of this calculation, covered in more detail later in this guide.

Step 2: Calculate Your Daily Basic Wage

Divide your monthly basic salary by 30. For example, a basic salary of QAR 3,000 gives a daily basic wage of QAR 100.

Step 3: Calculate 21 Days of Basic Wage

Multiply your daily basic wage by 21 (three weeks) to get the minimum gratuity for one full year of service. For the QAR 3,000 example, that is QAR 100 × 21 = QAR 2,100.

Step 4: Multiply by Your Years of Service

Multiply the 21-day amount by your total years of service. For 2 full years at QAR 3,000 basic salary: QAR 2,100 × 2 = QAR 4,200 estimated gratuity.

Step 5: Calculate Partial Years

Article 54 entitles a worker to gratuity for fractions of a year in proportion to the duration of employment. Convert the extra months into a decimal fraction of a year (months ÷ 12), then multiply that fraction by the annual gratuity amount, worked through in detail in the next section.

Qatar Gratuity Calculation Examples

These examples use the same five-step method, with the arithmetic shown in full.

Example 1: QAR 3,000 Basic Salary, 2 Years

• Daily basic wage: QAR 3,000 ÷ 30 = QAR 100
• 21-day amount: QAR 100 × 21 = QAR 2,100
• Estimated gratuity: QAR 2,100 × 2 years = QAR 4,200

Example 2: QAR 5,000 Basic Salary, 5 Years

• Daily basic wage: QAR 5,000 ÷ 30 = QAR 166.67
• 21-day amount: QAR 166.67 × 21 = QAR 3,500
• Estimated gratuity: QAR 3,500 × 5 years = QAR 17,500

Example 3: QAR 8,000 Basic Salary, 7 Years and 6 Months

• Daily basic wage: QAR 8,000 ÷ 30 = QAR 266.67
• 21-day amount: QAR 266.67 × 21 = QAR 5,600
• 7 full years: QAR 5,600 × 7 = QAR 39,200
• 6 months (0.5 of a year): QAR 5,600 × 0.5 = QAR 2,800
• Estimated total gratuity: QAR 39,200 + QAR 2,800 = QAR 42,000

How to Calculate Gratuity for a Partial Year

Article 54 specifically entitles a worker to gratuity for the fractions of a year, in proportion to the duration of employment, so extra months beyond a full year are not ignored or rounded down.

Convert the extra months into a fraction of a year by dividing by 12, then multiply that fraction by your annual gratuity amount. For example, 6 extra months is 6 ÷ 12 = 0.5 of a year. Using Example 3 above, that 0.5 year is worth half of one year's gratuity amount: QAR 5,600 × 0.5 = QAR 2,800.

The same logic applies to any number of extra months. Three extra months would be 3 ÷ 12 = 0.25 of a year, and so on.

Is Gratuity Calculated on Basic Salary or Total Salary?

Basic salary. Article 54 states directly that the last basic wage is taken as the basis of the calculation of the gratuity. This is one of the most commonly misunderstood points about Qatar gratuity, and getting it wrong significantly changes the estimated amount.

Included in the gratuity calculation	Not included
Basic salary (last basic wage)	Housing or accommodation allowance
	Transport allowance
	Other allowances and benefits
	Bonuses

If your employment package includes a basic salary plus separate allowances, only the basic salary figure goes into this formula. A worker with a lower basic salary and higher allowances will have a smaller gratuity than the total monthly package might suggest. Our average salary in Qatar guide explains the difference between basic salary and total package in more detail.

End of Service Gratuity After Resignation

Article 54 does not draw a distinction based on who ended the employment. It refers to payment at the date of termination for a worker who has spent one year or more in employment, without separately conditioning the general entitlement on whether the employer or the worker ended the contract.

In practice, a worker who resigns after completing at least one year of service is generally still entitled to gratuity calculated the same way. What can affect the outcome is whether the resignation, or the manner of leaving, falls within one of the specific circumstances the law treats differently, such as the Article 61 grounds covered below, or contract-specific notice requirements. If your situation is not straightforward, confirm your specific entitlement with the Ministry of Labour or a qualified adviser rather than assuming a general rule covers every case.

End of Service Gratuity After Termination

If an employer ends the contract, the same Article 54 entitlement generally applies, provided the worker has completed at least one year of service and the termination does not fall under the specific serious-misconduct grounds set out in Article 61.

Where termination does fall under an Article 61 ground, the law allows the employer to dismiss the worker without notice and without payment of the end of service gratuity, covered in the next section.

When Can an Employee Lose or Have Gratuity Affected?

Article 61 of the Labour Law lists specific grounds on which an employer may dismiss a worker without notice and without paying the end of service gratuity. These are serious, specific circumstances, not general poor performance or a routine disagreement.

• Assuming a false identity, a false nationality, or submitting false certificates or documents
• Committing a mistake causing gross financial loss to the employer, provided the employer notifies the relevant department within 24 hours of becoming aware of it
• Repeatedly violating the employer's written safety instructions after being notified in writing, where those instructions were themselves written and displayed prominently
• Repeatedly failing to carry out essential duties under the employment contract or the law, after being notified in writing
• Disclosing confidential information about the employer's establishment
• Being found clearly drunk or under the influence of drugs during working hours
• Assaulting the employer, a manager, or a supervisor in the workplace

Can an Employer Deduct Money From Gratuity?

Yes, in one specific circumstance. Article 54 states the employer is entitled to deduct from the service gratuity any amount owed to the employer by the worker. This is a narrower provision than a general right to make deductions; it applies to genuine amounts the worker owes, not an open-ended discretion to reduce the payment.

If you believe a deduction from your gratuity was incorrect or not properly explained, ask your employer for a clear, itemised breakdown of what is owed and why, and raise it through the appropriate channel if it is not resolved directly.

End of Service Gratuity for Domestic Workers

Domestic workers in Qatar are not covered by the general Labour Law (Law No. 14 of 2004). They are covered by a separate law, Law No. 15 of 2017 on Domestic Workers, published by Qatar's Ministry of Labour.

That law includes its own end of service gratuity provision, reported to mirror the general Labour Law's structure: at least three weeks pay for every year of service, for a domestic worker who completes one year or more of service, with gratuity for fractions of a year calculated proportionally. Because this sits in a separate piece of legislation, do not assume every detail of Article 54 (such as the specific Article 61 dismissal grounds) applies automatically to a domestic worker in exactly the same way. Confirm domestic worker-specific terms against Law No. 15 of 2017 directly or with the Ministry of Labour.

Qatar Gratuity Calculation Table

Estimated minimum gratuity at different basic salary levels, calculated using the formula in this guide. These are estimates based on the statutory minimum, not a guarantee of any specific amount.

Basic salary	Daily basic wage	21-day amount	1-year estimated gratuity	5-year estimated gratuity
QAR 2,000	QAR 66.67	QAR 1,400	QAR 1,400	QAR 7,000
QAR 3,000	QAR 100	QAR 2,100	QAR 2,100	QAR 10,500
QAR 4,000	QAR 133.33	QAR 2,800	QAR 2,800	QAR 14,000
QAR 5,000	QAR 166.67	QAR 3,500	QAR 3,500	QAR 17,500
QAR 7,500	QAR 250	QAR 5,250	QAR 5,250	QAR 26,250
QAR 10,000	QAR 333.33	QAR 7,000	QAR 7,000	QAR 35,000

Common Gratuity Calculation Mistakes

• Using total salary instead of basic salary. Article 54 is explicit that the last basic wage is the calculation basis, not your full monthly package.
• Using 30 days instead of 21 days for the annual entitlement. The statutory minimum is three weeks (21 days) of basic wage per year, not a full month.
• Ignoring partial years. Fractions of a year count proportionally under Article 54; they are not rounded down to zero.
• Using an old basic salary instead of your last basic wage. If your basic salary changed during your employment, the calculation uses your final basic wage, not an earlier or average figure.
• Assuming every worker falls under the exact same framework. Domestic workers follow a separate law, and government-sector Qatari nationals typically follow separate civil service arrangements rather than this private-sector rule.

What to Do If Your Employer Calculates Your Gratuity Incorrectly

1. Recalculate your own estimate using your last basic wage, not your total salary, following the steps in this guide.
2. Ask your employer in writing for an itemised breakdown of how they calculated your gratuity, including the basic wage figure and years of service they used.
3. Compare that breakdown against your employment contract and any salary certificate or payslip showing your basic salary.
4. If the discrepancy is not resolved directly with your employer, raise it through Qatar's official labour dispute channels.

Our guide to filing a labour complaint in Qatar covers the official process, documents needed, and what happens after you submit a complaint.

Final Summary

Under Article 54 of Qatar's Labour Law, eligible private-sector workers with one year or more of service are entitled to a minimum end of service gratuity of three weeks basic wage per year, calculated on the last basic wage, with partial years counted proportionally. This is a long-standing rule under a law in force since 2004, not a new 2026 change.

The formula (daily basic wage times 21, times years of service) gives a reliable estimate, but Article 61 sets out specific serious-misconduct grounds where gratuity can be forfeited entirely, and domestic workers follow a separate law with a parallel but distinct framework. Always use your last basic wage, never your total salary, and check your own contract and circumstances rather than assuming a single figure applies to every case.

Last reviewed

17 September 2026.

Editorial review note. This guide was researched using the verbatim text of Articles 54 and 61 of Qatar's Labour Law (Law No. 14 of 2004), retrieved directly from Qatar's official Al Meezan Legal Portal during research, and Qatar's Ministry of Labour published text of Law No. 15 of 2017 on Domestic Workers. The three-week, last-basic-wage formula is a long-standing statutory minimum, not a new 2026 rule. Details on Law No. 15 of 2017 not independently confirmed against the primary legal text in this review, including its exact article numbering, are noted as drawn from consistent secondary legal reporting rather than presented as verified primary-source quotation.

Correction and update policy. Qatar's labour law can be amended. We review this page regularly and update it when we learn of a change. If something here no longer matches the current Al Meezan text of the Labour Law, contact us and we will verify and correct it, noting the revision date.

Independent-website disclaimer. QatarVia is an independent informational website and is not affiliated with Qatar's Ministry of Labour or the Al Meezan Legal Portal. This guide explains the general law in plain English and provides calculation estimates; it is not legal advice. For a dispute or a specific situation, confirm your position with the Ministry of Labour or a qualified legal adviser.