How Qatar gratuity is calculated
Article 54 of Law No. 14 of 2004 entitles an employee who has completed one or more years of continuous service to a gratuity of not less than three weeks' basic wage for each year of service, calculated on the last basic wage. Fractions of a year are paid pro-rata and there is no statutory cap.
Three weeks is treated as 21 days and the daily wage as basic ÷ 30, so each year of service earns 0.7 of a month's basic salary. Many contracts and company policies provide more than the minimum (e.g. one month per year) — if yours does, the higher figure applies.
Resignation does not reduce the entitlement. The only forfeiture is dismissal under Article 61 (gross misconduct).
Formula
Worked example
Basic QAR 8,000, 4.5 years: 4.5 × 21 × (8,000 ÷ 30) = 4.5 × 5,600 = QAR 25,200.
Legal basis: Law No. 14 of 2004 (Labour Law), Article 54.
Frequently asked questions
How is gratuity calculated in Qatar?
Years of service × 21 days × (last basic salary ÷ 30). Example: 5 years at QAR 6,000 basic = 5 × 21 × 200 = QAR 21,000.
Is Qatar gratuity based on basic or gross salary?
Basic salary only, as stated in your contract. Housing, transport and food allowances are excluded unless your contract says otherwise.
Do I get gratuity if I resign in Qatar?
Yes. The full accrued amount is payable on resignation once you have completed one year. There is no reduction for resigning.
Is there a maximum gratuity in Qatar?
No statutory cap. Entitlement keeps accruing at 21 days per year for as long as you are employed.
Can my employer pay less than 3 weeks per year?
No. Three weeks per year is the legal minimum. A contract offering more is enforceable; one offering less is not.
What about the Qatar end of service "savings" or WPS?
The Wage Protection System covers monthly salary payment only. Gratuity remains a lump sum paid by the employer on exit, although some employers in QFC follow their own schemes.
When should gratuity be paid in Qatar?
With the final settlement, which must be made within seven days of the contract ending under the Wage Protection rules.