Qatar gratuity calculator — Labor Law 14/2004 formula

How much end-of-service gratuity do you owe a Qatar private-sector employee? Under Labor Law 14/2004: minimum 3 weeks of basic salary per year of service for the first 5 years + higher entitlement after year 5 (commonly 1 full month per year). Based on LAST basic salary. No cap. Payable at contract end regardless of who initiates (except gross misconduct). Worked examples in QAR below.

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3-weeks/year minimum formula

Minimum 3 weeks basic salary per year of service for first 5 years. After year 5, Law 14/2004 allows higher entitlement — most employers pay 1 full month per year. Contract may specify a more generous schedule; cannot be less than law minimum.

Basic salary basis

Qatar EoS uses LAST basic salary — housing, transport, and regular allowances typically excluded (narrower than Saudi, similar to UAE). Always document basic separately in employment contract to avoid disputes at termination.

Payable regardless of who initiates

Unlike Saudi (resignation 33/66/100% brackets) or Kuwait (Article 51 reductions), Qatar has NO resignation reductions. Both resignation + employer-termination pay full EoS. Only exception: gross misconduct per Article 61 (immediate dismissal grounds).

Separate from GRSIA pension

EoS is separate from General Retirement and Social Insurance Authority (GRSIA) pension. GRSIA covers Qatari citizens only (expats excluded). Qatari employees receive both EoS at termination + GRSIA pension through retirement. Expats rely solely on EoS as their severance.

Minimum wage applies to EoS base

Qatar's 2021 minimum wage (QAR 1,000 basic + QAR 500 housing + QAR 300 food = QAR 1,800/month effective) means EoS calculation uses at minimum QAR 1,000 basic as the daily-rate basis. Housing + food allowances don't add to EoS calc base.

30-day payment window

EoS must be paid within 30 days of termination per Qatar Labor Law. Delays trigger labour-office complaint + potential interest + MADLSA fines. Immediate payment in last payslip is standard practice to avoid disputes.

5 worked examples — Qatar gratuity calculation

3-year employee, QAR 5,000 basic

Formula: 3 weeks × 3 years = 9 weeks = 2.07 months (9/4.33). Daily rate = 5,000/30 = QAR 166.67. Gratuity = 9 weeks × 7 days × 166.67 = QAR 10,500.

5-year employee, QAR 8,000 basic

Formula: 3 weeks × 5 years = 15 weeks = 105 days. Daily rate = 8,000/30 = QAR 266.67. Gratuity = 105 × 266.67 = QAR 28,000.

7-year employee, QAR 10,000 basic (1 month/yr after 5)

Formula: (3 weeks × 5) + (1 month × 2) = 15 weeks + 2 months = 105 days + 60 days = 165 days. Daily rate = 10,000/30 = QAR 333.33. Gratuity = 165 × 333.33 = QAR 55,000.

12-year employee, QAR 12,000 basic

Formula: (3 weeks × 5) + (1 month × 7) = 15 weeks + 7 months = 105 + 210 = 315 days. Daily rate = 12,000/30 = QAR 400. Gratuity = 315 × 400 = QAR 126,000. No cap in Qatar.

20-year employee, QAR 15,000 basic

Formula: (3 weeks × 5) + (1 month × 15) = 15 weeks + 15 months = 105 + 450 = 555 days = 18.5 months. Daily rate = 500. Gratuity = 555 × 500 = QAR 277,500. No cap (unlike UAE 2-year cap).

Qatar EoS edge cases

Contract vs legal minimum: Qatar employers often contract for 1 month per year from day 1 (more generous than 3-week legal minimum). Always honor the more generous of contract or law minimum. Documenting in contract avoids ambiguity.
Minimum wage impact: Post-2021 QAR 1,000 basic minimum means EoS daily-rate base can\'t be below QAR 33.33 (1,000/30). Housing + food allowances don\'t add to EoS base.
Transfer between employers (post-Kafala): Service doesn\'t carry between separate employers post-2020 Kafala reforms. If employee changes employer, EoS paid out by original employer + new employer starts fresh service clock.
Mid-year termination: Service prorated to day-level. 3 years 7 months = 3.583 years service.
Payment timing: 30 days from termination per Labor Law. Late = labour complaint + MADLSA fines.
Qatari nationals + GRSIA: EoS + GRSIA pension both payable. Qatari employee EoS is paid as lump-sum at termination; GRSIA pension starts at retirement.

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Frequently Asked Questions

What is the Qatar end-of-service formula?

Per Labor Law 14/2004: minimum 3 weeks basic salary per year of service for the first 5 years. After year 5, higher entitlement (commonly 1 full month per year — contract may specify). Based on LAST basic salary only (allowances excluded). No cap. Partial years prorated to day-level precision.

Does Qatar have resignation EoS reductions?

No. Unlike Saudi (33/66/100% brackets) and Kuwait (Article 51 reductions), Qatar does NOT reduce EoS for resigning employees. Both resignation + employer-termination pay full EoS, except gross misconduct per Article 61.

How does Qatar's 2021 minimum wage affect EoS?

The QAR 1,000 basic minimum wage (plus QAR 500 housing + QAR 300 food = QAR 1,800/month effective) means EoS calculation base cannot be below QAR 1,000 basic. Housing + food allowances do not contribute to EoS base — only basic salary.

Does Qatar EoS carry over when employee changes jobs?

No. Post-2020 Kafala reforms allow workers to change employers without permission, but service time doesn't transfer. Original employer pays out EoS on departure; new employer starts fresh service clock.

Does AttendUX automate Qatar EoS?

Yes. Labor Law 14/2004 formula pre-configured — tenure calculated day-precision, basic salary tracked separately from allowances, contract-specified rate applied if greater than legal minimum, 30-day payment window flagged. At termination, EoS auto-computes + flows to final payslip.

Legal Information Notice

This page summarizes key provisions of Qatari Labor Law No. 14 of 2004, Article 54 (gratuity) for general informational purposes only. This is not legal advice. Labor laws are amended periodically; AttendUX makes no warranty about completeness or current validity. For your specific situation — including employment terminations, disputes, cross-border cases, or policy design — consult a labor-law attorney licensed in the relevant jurisdiction and verify with the Qatar MADLSA.

Primary source: Qatari Labor Law No. 14 of 2004, Article 54 (gratuity) — Qatar MADLSA

Reviewed by: AttendUX Compliance Team · Last reviewed: 2026-11-04