What is End of Service Gratuity?
According to Qatar Labour Law, End of Service Gratuity is a sum of money stipulated to be paid to an outgoing employee based on the period of service. This is calculated based on your employment contract and the number of years you have worked for the company.
This article explains the Labour Law regarding End of Service Gratuity and how you can calculate the end of service gratuity using the online tool by the Ministry. We have also included a Free Qatar Gratuity Calculator in English.
- What is End of Service Gratuity?
- Qatar Gratuity Calculator in English
- How To Calculate End of Service Gratuity on MADLSA website
- End of Service Gratuity: What the Law Says
- Is Gratuity Higher If Employee Has Worked For More Than 5 Years?
- Will Gratuity Be Paid in Case of Worker’s Death?
- Can the Employer Terminate Employee Without Gratuity?
- FAQ on End of Service Gratuity in Qatar
Qatar’s Ministry of Administrative Development, Labor and Social Affairs (MADLSA) provides an online service that allows applicants to calculate the end of service gratuity on its official website. However, this page is only available in Arabic.
Qatar Gratuity Calculator in English
For your convenience, DohaGuides.com has developed a similar online calculator in English. You can check the calculator below:
Note that you have to enter data in accordance with the contract signed between you and your employer.
Please note that you are not eligible for End of Service Gratuity if your service is less than one year.
The result from this calculator will give you an approximate amount of your end of service gratuity. The exact amount would be based on your company’s HR policies.
How To Calculate End of Service Gratuity on MADLSA website
You can also calculate the end of service gratuity on the Ministry website by entering joining date, last working date, basic monthly salary and number of gratuity days due for each year.
Although the service is available only in Arabic, non-Arabic speakers can also easily calculate ESB by following these steps:
STEP 1: Click on this link to open the calculation page. You will see the following fields in Arabic:
STEP 2: In the first field, enter your Date of Joining (as per your contract)
STEP 3: In the second field, enter your Last Working Date
STEP 4: In the third field, enter your Basic Monthly Salary (as per your contract)
STEP 5: In the fourth field, enter the Gratuity Days accrued for each year (for example 21 days for one year). You have to refer to your contract for this.
STEP 6: Click on the bottom button and you can see the result.
This service was introduced to ensure greater transparency and to make foreign employees aware of their rights.
The end of service gratuity is calculated under the Labour Law No. 14 of 2004.
End of Service Gratuity: What the Law Says
Upon termination of the employment contract, an employee is entitled to end-of-service gratuity and leave salary. In accordance with Article 54 of the Labour Law (Law No. 14 of 2004), for each year of employment, the employee is eligible for a minimum of three weeks basic salary as the end-of-service gratuity.
As per Article 81 of the said law, if the employment contract is terminated for any reason before a worker takes his annual leave, he shall be entitled to payment in lieu of annual leave equivalent to his wage for the leave days to which he is entitled.
When the employment contract is terminated, the employer is responsible for repatriating the employee back to the place from where he was recruited or any her place agreed by the parties. However, if the worker joins another employer before departure from the country, then this obligation shifts to the new employer.
As per Article 15 of Law No 14/2004,
“In addition to any amounts due to the Worker at the end of his/her term of service, the Employer shall pay an end-of-service gratuity to the Worker who has been employed for a period of one full year or more as of the effective date of this Law.
The gratuity shall be determined and agreed by both parties, provided it is not less than a three-week-pay for each year of service.
The Worker is further entitled to get a gratuity for fractions of the year based on the entire duration of service proportionately. The Employer shall be entitled to deduct from the gratuity the amounts the Worker owes to the Employee.”
The worker’s service shall be considered continuous if it is terminated in cases other than those stipulated in article 61 of this Law and returned to service within two months of its termination.
- The last basic salary shall be the base for the calculation of the gratuity.
- The employer is entitled to deduct from the gratuity any due amount to be paid by the worker.
Is Gratuity Higher If Employee Has Worked For More Than 5 Years?
As per the current law (Law No 14 of 2004) gratuity shall be agreed upon by employer and employee, provided that it is not less than a three-week remuneration for every year of employment.
The clause that says a worker should be paid 4 weeks/year for working 5-10 years and 5 weeks/year for more than 10 years, was part of the old labour law and is not valid anymore.
Will Gratuity Be Paid in Case of Worker’s Death?
According to Article 55 of the Labour Law, if the worker dies during the service, regardless of the cause of death, the employer shall deposit with the treasury of the competent court any wage or other entitlements due to the worker in addition to the end of service gratuity within a period not exceeding fifteen (15) days from the date of the death.
The minutes shall contain a detailed report indicating the method of calculating the amounts referred to. The employer shall deposit a copy of the minutes with the Department.
The competent court shall distribute the deposited amounts among the deceased Worker’s heirs in accordance with Islamic Sharia provisions or the Personal Status Law applicable in the deceased Worker’s home country.
If three years have elapsed since the date of deposit without the person deserving the due amounts being known, the court shall transfer these amounts to the State Public Treasury.
Can the Employer Terminate Employee Without Gratuity?
According to Article 61 of the Labour Law, there are certain situations under which an employer may dismiss an employee without the payment of the end of service gratuity. Instances of such gross misconduct include:
- violation of written instructions pertaining to worker safety
- employee intoxication while at work, and
- disclosure of secret information regarding the employer
FAQ on End of Service Gratuity in Qatar
How is the end of service gratuity calculated?
End of service gratuity is calculated based on the employment contract and the number of years the employee has worked for the company.
How much is the minimum gratuity in Qatar?
According to Law No. 14 of 2004, for each year of employment, the employee is eligible for a minimum of three weeks basic salary as the end-of-service gratuity.
How can I calculate the end of service gratuity?
You can calculate end of service gratuity online by going to the end of service gratuity calculator on Ministry website.
What can I do if my employer refuses to pay end of service gratuity?
In case your employer refuses end of service gratuity without any reason, you can file a complaint at the Labour Court.