What is Gratuity in Qatar and How to Calculate it in 2025 – Complete Guide

When it comes to gratuity in Qatar, understanding the legal bases and how to calculate it is crucial for anyone working in the country. Gratuity serves as an end of service benefit, offering financial security after employment ends. According to Qatar labor law, the payment depends on several factors, such as the length of service and the type of contract. 

It’s important to know what you are eligible for and the conditions under which you can receive it. Gratuity in Qatar isn’t just a gift from the employer; it is a legal entitlement that reflects the purpose of honoring long-term employment. Knowing how to calculate gratuity properly is essential, so workers understand their eligibility and ensure they receive what they are owed.

When calculating gratuity in Qatar, the law outlines clear guidelines for how much an employee should be paid after a specific period of service. Factors like whether you are eligible for gratuity, the length of service, and the nature of your contract play a big role in determining the amount. 

The things you need to know are straightforward but require attention to detail to avoid misunderstandings or mistakes. Understanding these aspects will help you navigate the Qatar labor law with confidence, ensuring you’re fully aware of your rights when it’s time to end your employment.

What is The Gratuity In Qatar?

In Qatar, gratuity is a lump sum monetary payment made to an employee at the end of their service, provided they have worked for a period of service of more than one year. This gratuity payment is seen as a liability for the employer, which is why it must be paid when the employee finishes their term of office. If the employee decides to resign or is given a letter of dismissal, they are still entitled to receive their gratuity, as long as their service meets the required duration. 

According to Article number 54, even if the employee works for less than a full year, they are still eligible to receive a fraction of the year of continuous service as part of their gratuity payment. It’s essential to understand that an employee is entitled to this gratuity if they’ve rendered more than one year of service, regardless of how long they’ve been with the company.

Understanding Gratuity in Qatar

In Qatar, if you have completed at least one year of continuous employment, you are entitled to gratuity when your employment ends. Whether through resignation, dismissal, or termination, the gratuity is a sum of money paid by your current employer. However, if your contract is ended due to any violation, you may not qualify for this payment. Article 61 of the Labor Law sets the guidelines for how gratuity should be paid, ensuring that all workers are covered by the law. 

This applies to both Qatari and non-Qatari employees, and it’s crucial to note that the Labor Law No. (14) of 2004 and Domestic Workers Law No. (15) of 2017 protect workers’ rights. For departing employees, the payment should reflect the end of service benefits mentioned in the employees’ contracts. Depending on the contract’s terms, an employee’s rights may be affected by termination, expiration, or various conditions of employment.

Gratuity Entitlement for Qatar

Private Sector Employees (Before 6th January 2005)

Length of ServiceWeeks of Salary to be Paid
0-5 years21 days for each year or part year of service
5-10 years28 days for each year or part year of service
10-20 years35 days for each year or part year of service
20+ years42 days for each year or part year of service

Private Sector Employees (After 6th January 2005)

Length of ServiceGratuity Calculation
Less than 1 yearNo gratuity paid
1 year or more3 weeks for each year or part year of service

Government Sector Employees

Employee TypeMinimum Service RequiredGratuity Calculation
Qatari Employee1 year1 x monthly salary for each year or part year of service
Non-Qatari Employee1 year1 month for each year or part year of service (Maximum limit 10 months)

Employees Registered for Social Insurance

Length of ServiceGratuity Calculation
20+ years1 x monthly salary for each year after 20 years
30+ years2 x monthly salary for each year after 30 years

I have created and displayed the tables for the different types of gratuity entitlements based on Employer Type, Length of Service, and other factors as per the provided information. Please review the tables for a clear understanding of how gratuity payments are calculated for employees in different sectors and under various conditions.

Legal Regulations Some basics about End of service Qatar labor law are:

When it comes to end of service benefits in Qatar, understanding the legal regulations is essential. According to Article 54 of the Labor Law, an employee is entitled to a minimum basic salary of three weeks for each year of employment as part of their gratuity. If an employee’s employment contract is terminated or they leave, the end-of-service gratuity is calculated based on this. In Article 81, it is clear that if the employee has not taken their annual leave, they are entitled to payment in lieu of that leave, based on the salary for the days of leave.

Moreover, Article 15 of the Labor Law further clarifies that, in addition to other amounts due at the end of the employee’s period of service, the employer must pay the end-of-service gratuity. If the worker has been employed for a full year or more, the gratuity will be based on the total length of service and agreed upon by both parties, not to be less than three weeks per year. If the service is less than three weeks, it will be calculated proportionally.

  • Article 54: Minimum basic salary of three weeks per year of employment.
  • Article 81: Payment in lieu of unused annual leave.
  • Article 15: End-of-service gratuity based on full year service, agreed upon by both parties.
  • Gratuity for fraction of a year is proportional.

Expected Tipping Amounts

In Qatar, gratuity serves as a financial safety net for employees who have worked a specified period with their employer. This payment is often considered a legal right and is governed by Qatari law. However, there are certain circumstances where an employer might attempt to withhold or delay the gratuity. 

If an employee resigns or has their employment contract terminated, they are still entitled to the gratuity unless the termination of service happens under specific circumstances, such as gross misconduct. According to Article 61, an employer may immediately terminate an employee’s contract without notice or obligation to pay gratuity if the termination is due to these conditions. 

It is essential for both the employee and employer to be aware of these regulations to ensure the gratuity is paid correctly and on time.

Cultural Factors

In Qatar, gratuity is deeply connected to the local work culture, where it is often seen as a token of appreciation for the employee’s dedication. The last basic salary is the basic amount used to calculate the gratuity, and it can also affect the bonus. If the type of employment changes, it doesn’t typically affect the amount of the bonus paid. However, if an employee has taken unpaid leave, this is not included in the service decision. Furthermore, employees with a pension plan may not be eligible for gratuity. It’s important for employees to have a clear picture of the post-graduation calculation so they can understand the full benefits offered by their employer’s plan. Employees should also be aware that the gratuity calculation is usually based on 21 days for each year of service, and the base salary serves as the basis for determining the gratuity amount. If the employer refuses to pay gratuity without a specific reason, employees can file a complaint with the labor court.

  • Last basic salary is used to calculate the gratuity.
  • Bonus paid doesn’t change with type of employment.
  • Unpaid leave is not included in the service decision.
  • Pension plan may make employees not eligible for gratuity.
  • Employees should know the clear picture of their post-graduation calculation for full benefits.
  • Gratuity calculation is based on 21 days for each year of service.
  • Base salary determines the gratuity amount.
  • If the employer refuses to pay, a complaint can be filed with the labor court.

How to Compute Gratuity in Qatar?

Gratuity Computation Steps

StepDescription
4. Enter your monthly base salaryIn the third field, enter your monthly base salary as mentioned in your contract.
5. Enter the graduated days for each yearIn the next field, refer to your contract to enter the graduated days for each year.
6. Click the button to get the resultsFinally, click on the button to get the gratuity results based on your entered data.

What is Gratuity in Qatar and How to Calculate it in 2025

How to Compute Gratuity in Qatar

To compute gratuity in Qatar, you can follow an easy process through the calculation page provided online. First, access the page, which is in Arabic language, and enter the required information. The first field asks for your date of joining, which should be as per your contract. In the second field, you need to enter your last date of employment. The third field is where you’ll input your monthly base salary, again as per your contract. Then, refer to your contract to enter the graduated days for each year in the next field. Once you’ve filled in all the fields, click the button to get the results, which will give you a transparent and clear picture of your gratuity based on Qatar labor law. This tool ensures that both foreign and local employees are aware of their legal rights.

  • Open the calculation page in Arabic language.
  • Enter your date of joining (first field).
  • Enter your last date of employment (second field).
  • Enter your monthly base salary (third field).
  • Enter the graduated days for each year (refer to your contract).
  • Click the button to get the results.

Calculation of gratuity in Qatar after 5 years

To calculate gratuity in Qatar after 5 years of service, the formula is simple. For a period of service less than 5 years, employees are entitled to 3 weeks of salary for each year worked. However, after 5 years, the calculation changes. For example, if you have worked at a company for 2 years and your basic salary is 2000 QAR, the formula works as follows:

  1. QAR 2000 ÷ 30 (to get the one day salary) = QAR 66.66.
  2. Multiply QAR 66.66 by 21 (the 21 days for each year) = QAR 1,400.
  3. Multiply the QAR 1,400 by 2 years = QAR 2,800.

This gratuity calculation gives you QAR 2,800 for 2 years of service. If you work for 10 years, the calculation changes to 4 weeks of salary instead of 3 weeks.

How to calculate end of service gratuity in qatar 2025

To calculate end of service gratuity in Qatar for 2025, the process is straightforward. The calculation is based on 21 days of salary for each year of service. This means that your last base salary serves as the basis for determining the gratuity amount. You can use the Qatar gratuity calculator provided by the Qatar Ministry of Administrative Development, Labor and Social Affairs on their official website. 

This online service allows applicants to calculate their gratuity quickly and accurately. The employer is obligated to pay the gratuity unless there is a reason to deduct an amount, as stated under Qatar Labor Law. This tool helps you get a clear view of your end of service gratuity, ensuring transparency and accuracy in your gratuity calculation.

Calculate Gratuity on Ministry Website

To calculate your end-of-service gratuity in Qatar, you can use the online service provided by the Qatar Ministry of Administrative Development, Labor and Social Affairs. The service is available on the official website, and it is provided in Arabic language. You can access the calculation page, where you’ll need to fill out various fields. In the first field, enter your joining date as mentioned in your contract. 

In the second field, input your Last Work Date, and in the third field, enter your Basic Monthly Salary. Finally, in the fourth field, you need to input the accrued Gratuity Days for each year of service, which you should check in your contract. This will allow you to determine the gratuity you are entitled to, which is an essential financial benefit and an important part of your compensation package.

The online service helps employees and applicants to calculate their gratuity accurately and efficiently, ensuring financial security after their job ends. By using this tool, you can get a clear picture of your gratuity and ensure that it reflects your dedication and commitment to your work.

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