Important Note: Employees with less than 12 months of continuous service are not eligible for gratuity payments.
Understanding Qatar’s Gratuity System
Legal Basis for End-of-Service Benefits
Qatar’s Labour Law (Law No. 14 of 2004, with 2025 amendments) mandates that all employees completing at least one year of service receive an end-of-service benefit. This payment is calculated based on:
- Duration of employment
- Final basic salary amount
- Type of contract termination
Calculation Methodology
The gratuity computation follows a two-tier structure:
- For first five years of service:
- 21 days’ pay for each completed year
- Based on basic salary only
- For service beyond five years:
- 30 days’ pay for each additional year
- Includes full monthly basic salary
Illustrative Example:
An employee with a basic salary of 12,000 QAR who worked for 6 years would receive:
- First 5 years: (12,000 ÷ 30) × 21 × 5 = 42,000 QAR
- 6th year: (12,000 ÷ 30) × 30 × 1 = 12,000 QAR
- Total Gratuity: 54,000 QAR
Key Considerations for Employees
Eligibility Requirements
- Minimum one continuous year of employment
- Applies to both resignations and employer-initiated terminations
- Excludes cases of serious misconduct
Special Circumstances
- Probation periods count toward service duration
- Unpaid leave may affect total service calculation
- Contract renewals maintain continuous service status
Recent Changes in 2025 Labour Law
The 2025 amendments introduced several important updates:
- Gratuity Calculation
- Maintained existing calculation method
- Clarified inclusion of all contractual bonuses
- Payment Timeline
- Strict 14-day payment window after termination
- Penalties for delayed payments
- Dispute Resolution
- New mediation process for gratuity disputes
- Digital submission of claims
FAQs
What if I change jobs within Qatar?
Service periods are not transferable between employers unless specifically agreed in writing.
How is gratuity paid?
Typically as a single lump sum through bank transfer within two weeks of termination.
Are there tax implications?
Gratuity payments remain completely tax-free under Qatari law.
What about public holidays and leave?
All approved leave types count toward total service duration.
Need Further Assistance?
For complex cases or legal interpretations:
- Contact Qatar’s Ministry of Labour hotline: 92727
- Visit official website: www.mol.gov.qa
- Consult with a licensed labor attorney
Disclaimer: This calculator provides estimates based on current legislation. For official determinations, consult your employer’s HR department or legal counsel.
Download Labour Law State of Qatar from Bureau of Emigration & Overseas Employment Here
Download Law No. (14) of 2004 Promulgating the Labour Law 1 from Qatar’s Ministry of Labour Here
Download Law No. (15) of 2017 on Domestic Workers from Qatar’s Ministry of Labour Here
