End-of-Service Gratuity in Qatar (2026): The Formula, Worked Examples and What Employers Should Accrue Monthly

End-of-Service Gratuity in Qatar (2026): Formula and Worked Examples

Direct answer: Under Qatar's Labour Law, a worker who has completed at least one year of continuous service is entitled to an end-of-service gratuity of not less than three weeks' basic wage for each year of service, calculated on the last basic wage, with fractions of a year counted proportionally. Allowances (housing, transport and others) are excluded unless the contract says otherwise in the worker's favour.

The 30-second summary

• Condition: one completed year of continuous service.
• Minimum: three weeks of basic wage per year; the contract or company policy may give more.
• Base: the last basic wage, not the gross salary.
• Fractions: months and days after the first year count proportionally.
• For employers: accrue the amount monthly as a liability so a resignation does not surprise you.

The formula

Weekly basic wage = monthly basic wage × 12 ÷ 52. Gratuity per year = weekly basic wage × 3. Total gratuity = gratuity per year × years of service (including fractions).

Worked examples

| Monthly basic wage | Weekly wage | Per year | 3 years | 5 years | 10 years | |---|---|---|---|---|---| | QAR 2,000 | 461.54 | 1,384.62 | 4,153.85 | 6,923.08 | 13,846.15 | | QAR 4,000 | 923.08 | 2,769.23 | 8,307.69 | 13,846.15 | 27,692.31 | | QAR 6,000 | 1,384.62 | 4,153.85 | 12,461.54 | 20,769.23 | 41,538.46 | | QAR 10,000 | 2,307.69 | 6,923.08 | 20,769.23 | 34,615.38 | 69,230.77 |

With a fraction: an employee on a QAR 4,000 basic wage who served 3 years and 6 months: 2,769.23 × 3.5 = QAR 9,692.31.

What counts and what does not

• Counts: the basic wage in the contract (the last wage at the end of service).
• Usually does not count: housing allowance, transport allowance, variable commissions and bonuses, unless both parties agreed to treat them as part of the basic wage.
• Unused leave is settled separately from the gratuity.
• The gratuity cannot be below the legal minimum even if the contract says less.

For employers: accrue it monthly

An employee on a QAR 4,000 basic wage costs you QAR 2,769 of gratuity per year, i.e. QAR 231 per month to set aside as a liability. With 10 employees at that average the liability is QAR 2,300 per month; employers who do not accrue it are caught out by two resignations in one month. In ThreeU payroll is recorded inside company management with expenses, so you can add an end-of-service provision as a fixed monthly line and review the accumulated liability in reports. Read: HR and payroll software for small businesses in Qatar.

Cases that need care

1. Resignation before one year: no statutory gratuity. 2. A changed basic wage: calculate on the last wage, not the average. 3. Broken service: leaving and returning on a new contract starts a new count unless agreed otherwise. 4. Disciplinary dismissal: has specific provisions in the law; do not decide on forfeiture without the text or an adviser. 5. Qatari and GCC nationals: may fall under pension and social insurance schemes instead of or alongside gratuity.

I want to add an end-of-service provision and payroll to my company system

FAQ

How do I calculate end-of-service gratuity in Qatar?

Monthly basic wage × 12 ÷ 52 = weekly wage; multiply by 3 for each year of service and add the proportional fraction after the first year.

Is gratuity calculated on the gross salary?

No, on the basic wage as a minimum, unless the contract gives the worker better terms.

When is a worker entitled to gratuity?

After completing one year of continuous service with the same employer.

Can a contract give less than three weeks per year?

No; three weeks is the statutory minimum, and more can be agreed.

Sources

• Qatar Labour Law No. 14 of 2004 and amendments — article on end-of-service gratuity (as published on the Ministry of Labour portal)
• Ministry of Labour — services portal: adlsa.gov.qa
• ThreeU — Employees and payroll · WPS payroll guide

> This page is a practical explanation, not legal advice; in a dispute rely on the current legal text or a labour adviser.

Arabic version: حساب مكافأة نهاية الخدمة في قطر 2026: المعادلة وأمثلة بالأرقام للموظفين وأصحاب المنشآت