End-of-service gratuity in Qatar: how it is commonly worked out

The common description of the sum

As commentary describes the Qatar Labour Law, an employee who has completed at least a year of service is due an end-of-service gratuity. The sum is usually described as three weeks of basic wage for each year of service.

Part years are commonly counted in proportion, so a worker who leaves after two and a half years is treated as having completed two and a half years. Treat all of this as a description of what guides say, and check it against the text and current practice before you act on it.

What the sum does and does not include

The usual description counts basic wage only. Allowances such as housing or transport are generally described as left out, unless the contract says otherwise. Contracts can also promise more than the minimum, and a promise in a signed contract is something to honour.

• Less than a year of service: commonly described as no gratuity due.
• A year or more: three weeks of basic wage for each year of service.
• Part years: usually counted in proportion.
• Contract promises above the minimum: the contract terms apply.

What to confirm before you rely on a number

Three points cause most disagreements. First, which pay counts: basic wage only, or something more, and what the contract calls basic. Second, the way a weekly rate is turned from a monthly wage. Third, how part years are rounded and whether unpaid leave or breaks in service change the count.

Write down the answers you are given, and who gave them. If the figure matters, because a worker is leaving or a dispute has started, confirm it with the Ministry of Labour or with your lawyer. Do not settle it from a guide alone, including this one.

A small worked example

Suppose an employee has served four years and the basic wage that counts is QAR 5,200.00 a month. Three weeks of basic wage is worked out from the weekly equivalent of that wage, and the same amount is due for each of the four years. Multiply the three-week amount by four, add any part year in proportion, and compare the result with what the contract promises.

Change the pay that counts or the way the weekly rate is derived and the answer moves. That is exactly why the confirmations above matter, and why any single figure should be read as an estimate.

Our calculator, and where TAQNIX ERP fits

Our free end-of-service calculator does the sum for you from the dates, the pay that counts and the reason for leaving. It gives an estimate, shows its working, and does not replace the confirmations above.

TAQNIX ERP is a different tool. It is a program on a Mac that opens in the browser and handles invoices, quotations, orders, point of sale and payment tracking. It has no payroll or HR module, so it does not work out gratuity.