Qatar End-of-Service Gratuity Explained (Law No. 14 of 2004)

The formula

Qatar’s end-of-service gratuity comes from Article 54 of Law No. 14 of 2004, the Labour Law. An employee who has completed one year or more with the same employer is entitled to a gratuity of at least three weeks of wage for each year of service. The calculation uses the employee’s last basic wage.

1. Take your last basic monthly wage and divide it by 30 to get one day of pay.
2. Count your years of service. Part-years are paid in proportion to the time worked.
3. Multiply one day of pay by 21, then by your years of service.

Unlike the UAE, the rate does not step up after five years and nothing caps the total. The rate stays at the three-week minimum unless your contract grants more.

Worked examples

For 5 years and 7 months on a QAR 6,000 basic wage, one day of pay is QAR 200 and the service is about 5.58 years, so 21 × 200 × 5.58 comes to about QAR 23,450. There is no cap, so 12 years on QAR 10,000 pays QAR 84,000.

Basic wage, not total pay

The gratuity is based on basic wage. Housing, transport and other allowances are left out of the calculation, as are bonuses and overtime. If your contract defines a higher basis for gratuity, that figure applies, because the law sets a floor and not a ceiling.

Continuous service and re-hiring

You need at least one year with the same employer to qualify, and under a year no gratuity is due. Service is treated as continuous if you leave and are hired again by the same employer within two months, as long as the earlier contract did not end under Article 61.

Article 61 and dismissal for gross misconduct

Article 61 lists the serious cases in which an employer may end a contract immediately, without notice and without gratuity. Law-firm summaries describe them as gross misconduct, for example forging documents, a long unexplained absence or assaulting a colleague. The bar for withholding gratuity is meant to be high.

If an employer dismisses someone under Article 61 and the ground does not fit, the gratuity is still owed. The calculator has a checkbox for this case. Ticking it shows the gratuity as forfeited, while any unused leave you enter is still paid. Use it only if that is what happened, and take legal advice if you dispute the grounds.

Qatar and the UAE compared

For ten years of service the UAE formula gives 5 × 21 + 5 × 30 = 255 days of pay, while the Qatar minimum gives 10 × 21 = 210 days. For short service the two are identical. The UAE pays more for long service, and Qatar has no cap for very long service.

Common mistakes

• Using total pay instead of basic wage, which makes the gratuity look larger than it is.
• Assuming a two-year cap or a 30-day rate because the UAE has them. Qatar has neither.
• Counting the start of service from the wrong date, for example from the visa date and not the first working day.
• Forgetting that part-years are paid in proportion, so seven months is not a full year and is not nothing.
• Treating unused leave as part of the gratuity. It is a separate line in the final settlement.

How to check your final settlement

1. Write down your joining date, your last working day and your last basic wage from your contract or payslip.
2. Work out your years of service, including the part-year, and multiply one day of pay by 21 and by that number.
3. Compare your figure with the settlement. If the employer’s figure is lower, ask for the working in writing.
4. Check each deduction listed, and ask for proof of any loan or advance that has been taken off.
5. If the gap remains, keep your documents and contact the Ministry of Labour.

Doing this before you sign a settlement is far easier than trying to correct it afterwards, and the calculator gives you the figure and the working in one place.

Unused leave and deductions

Unused annual leave is paid with your final settlement as a separate item. It is usually valued at your daily wage, so check how your contract values it. An employer can also deduct amounts you lawfully owe, such as an outstanding loan or advance, from the final payment, so the amount you receive can be lower than the calculated figure.

• Check your contract for any gratuity clause above the 21-day minimum.
• Keep a copy of your contract, your payslips and your joining date.
• Ask for the working behind your final settlement in writing.
• If a payment is delayed or disputed, the Ministry of Labour is the place to start.

Common questions

Sources

Reviewed on 18 Oct 2026 against the published sources below. Laws and prices change, so check the current position before you rely on a figure.

• Qatar Labour Law No. 14 of 2004, Article 54 (gratuity) and Article 61 (dismissal without notice)
• Gulf Times: Qatar labour law, end of service benefits
• Gulf Times: Calculation of gratuity
• Doha Guides: How to calculate end of service gratuity in Qatar

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