This blog post will guide you on how to calculate gratuity in Qatar. You can follow the guidelines provided by the Qatar Labor Law.
Article 54 – Law No. 14 of 2004 – Labor Law
“The Employer shall pay at date of termination the end of service gratuity in addition to any amounts due to the Worker who spent one year or more in employment.
This gratuity shall be agreed upon by the two parties, provided that it is not less than a three-week Remuneration for every year of employment.
The Worker shall be entitled to gratuity for the fractions of the year in proportion to the duration of employment. The Worker’s employment shall be considered continuous if it is terminated in cases other than those stipulated in Article 61 of this Law and is returned back to Work within two months of its termination.
The last Basic Wage shall be taken as the basis of the calculation of the gratuity.
The Employer shall be entitled to deduct from the service gratuity the amount owed to the employer by the Worker.“
To calculate the gratuity amount, the following formula is applied:
Gratuity Amount = (Last Basic Salary / 30) * 21 * Number of Years
- “Last Basic Salary” refers to the last monthly basic salary received by the employee.
- The division by 30 is done to convert the monthly basic salary into a daily salary rate.
- The multiplication by 21 represents the three-week remuneration.
- “Number of Years” represents the number of completed years of service.
- The final result is the gratuity amount that the employee is eligible to receive.
Calculate gratuity on Ministry of Labor Website:
Note: Calculator language is Arabic.
You can also calculate Gratuity here by using below calculator:
Please note that as per Qatar Labor Law quoted above, the Gratuity is an amount agreed upon by the two parties. The above calculator only calculates the minimum entitlement as per the Labor Law. An employee is entitled to gratuity after completing one year of employment.
Hope now you know how to calculate gratuity in Qatar. If you have any queries, relating to the Gratuity calculation, please let us know in the comments below. Check out our other Guides on Qatar.