Gratuity Calculator Qatar 2025

Gratuity, also known as end-of-service benefits (EOSB), is a financial reward provided to employees upon the termination of their employment. In Qatar, gratuity is a key part of labor law, offering workers a sense of financial security for their service. Understanding how gratuity is calculated is essential for employees and employers alike. Here’s a comprehensive guide to the gratuity calculation process in Qatar.

What Is Gratuity in Qatar?

Gratuity is a lump sum payment granted to employees as a token of appreciation for their service. According to Qatar Labor Law (Law No. 14 of 2004), employees who have completed at least one year of continuous service are entitled to gratuity payments when their employment ends.

Eligibility for Gratuity

To qualify for gratuity in Qatar, employees must:

1. Complete at least one year of continuous service with the employer.
2. Resign or have their employment terminated.
3. Ensure they have no serious misconduct or violations leading to termination, as specified by labor law.

How Is Gratuity Calculated in Qatar?

Gratuity is calculated based on the employee’s last basic wage. It excludes allowances such as housing, transportation, and other benefits. Here’s the formula:

Gratuity = (Last Basic Monthly Salary ÷ 30) × 21 × Number of Years Worked

• Last Basic Monthly Salary: The employee's final basic salary (excluding bonuses and allowances).
• 21 Days: Employees are entitled to 21 days of basic pay per year of service, as per the law.
• Number of Years Worked: The total years of service completed by the employee.

Example of Gratuity Calculation

Let’s assume the following details:

• Last basic monthly salary: QAR 5,000
• Total years of service: 5 years

Step-by-Step Calculation:

1. Daily wage = 5,000 ÷ 30 = QAR 166.67
2. Gratuity for one year = 166.67 × 21 = QAR 3,500
3. Total gratuity for 5 years = 3,500 × 5 = QAR 17,500

Thus, the employee will receive QAR 17,500 as gratuity.

Key Considerations

1. Partial Years: For employees who have completed more than a year but less than a full additional year, gratuity is prorated based on the months completed.
2. Resignation Before Completing 1 Year: Employees are generally not entitled to gratuity if they leave before completing one year of service.
3. Contractual Agreements: If the employment contract specifies a more favorable gratuity calculation, the terms of the contract prevail.
4. Deductions: Any outstanding loans, advances, or dues owed by the employee to the employer may be deducted from the gratuity amount.

Using a Gratuity Calculator

Online gratuity calculators are a convenient way to estimate your end-of-service benefits. Employees can input their basic salary, years of service, and any additional contractual terms to get an accurate calculation.