How to Calculate Your End-of-Service Gratuity in Qatar

Understanding the concept of gratuity and how it’s calculated can be crucial for employees working in Qatar. Gratuity, often referred to as “end of service benefit,” is a lump sum payment made to employees at the end of their employment tenure. This financial benefit is not just an act of goodwill but a legal entitlement for those who have completed more than one year of service. This article aims to simplify the process of calculating gratuity in Qatar, making it accessible and understandable for everyone.

What is Gratuity?

Gratuity is essentially a monetary “thank you” from an employer to an employee for the services rendered throughout their employment period. It is payable upon the end of employment, provided the employee has completed at least one year of service. Whether an employee resigns, is terminated, or retires, they become eligible for this end-of-service payment. The eligibility and calculation for this payment are outlined in Article 54, highlighting the entitlement to gratuity for any fraction of the year worked after completing a year of continuous service.

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Eligibility for Gratuity Payment

Any employee who completes more than one year of service becomes eligible for gratuity payment at the end of their service. This eligibility comes into play when an employee resigns, is terminated, or upon the termination of their employment contract for any other reason.

Calculating Your Gratuity in Qatar

The process of calculating gratuity in Qatar is straightforward but requires specific information such as your joining date, basic monthly salary, and your last working day. The Ministry of Administrative Development, Labor, and Social Affairs offers online tools on its official website to facilitate this calculation. Although these tools are primarily available in Arabic, they provide a user-friendly way to calculate your end-of-service benefits by inputting the necessary details.

How to Calculate Gratuity in Qatar

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Sample Computation of Gratuity

Let’s break down the calculation with an example for clarity:

  • Assume your basic monthly salary is 3,000 Qatari Riyal (QR).
  • You’ve worked for 6 years with your company.

First, determine your daily basic salary by dividing your monthly salary by 30 (the number of days in a month). For a salary of 3,000 QR, this calculation would be:

Daily basic salary = 3000 QR/30=100 QR per day

Next, calculate your gratuity based on the completed years of service:

Gratuity = (number of completed years) × (21days per year) × (daily basic salary)
Gratuity = 6 × 21 × 100 = 12,600 QR 

Therefore, after 6 years of service with a basic salary of 3,000 QR, you would be entitled to a gratuity of 12,600 QR.

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Key Rules and Laws

Several important rules and laws govern the calculation of gratuity in Qatar:

  • The calculation is based on the last drawn basic salary.
  • Changes in employment type do not affect the gratuity amount.
  • Unpaid leave periods do not count towards the service period.
  • In the event of an employee’s death, gratuity and unpaid wages must be settled within 15 days.
  • Employees covered by a pension plan may not be eligible for gratuity, depending on the employment contract and applicable laws.

Conclusion

In conclusion, understanding and calculating your end-of-service gratuity in Qatar is straightforward with the right information. By following the simple steps outlined in this guide, you can ensure you’re fully aware of what you’re entitled to after your years of service. This financial benefit is a crucial part of your employment rights, and knowing how to calculate it empowers you to make informed decisions about your career and financial future.

About M. AMEEN

Mohammed Ameen is a passionate blogger, writing since 2012 about expat life in the Middle East. His posts offer practical tips, guides, and keen observations to help fellow expats navigate life in the Middle East.