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 service period. 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 provided 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 Ministry website
- End of Service Gratuity: What the Law Says
- Gratuity During Unpaid Leave
- Is Gratuity Higher If Employee Has Worked For More Than 5 Years?
- Will Gratuity Be Paid in Case of Worker’s Death?
- Can Employer Terminate Employee Without Gratuity?
- FAQ on End of Service Gratuity in Qatar
Qatar’s Ministry of Labour 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 must enter data as per 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.
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 Ministry website
You can also calculate the end of service gratuity on the Ministry website. This is done by entering your joining date, last working date, basic monthly salary and the number of gratuity days due 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 the bottom button to see the result.
This service was introduced to ensure greater transparency and make foreign employees aware of their rights.
The end of service gratuity is calculated under 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 an end-of-service gratuity and leave salary. Under Article 54 of the Labour Law (Law No. 14 of 2004), the employee is eligible for a minimum of three weeks’ basic salary as an end-of-service gratuity for each year.
| Service Period | Gratuity Amount |
|---|---|
| Less than one year | No gratuity |
| One year and more | 21 days basic salary per year |
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 instead of annual leave equivalent to his wage for the leave days to which he is entitled [1].
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 other place agreed by the parties. However, if the worker joins another employer before departure from the country, this obligation shifts to the new employer.
As per Article 54 of Law No 14/2004,
“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 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 gratuity calculatio
- The employer is entitled to deduct from gratuity any amount due to be paid by the worker [2]
Gratuity During Unpaid Leave
If the employee takes unpaid leave, this period is excluded from the service period calculation. As a result of unpaid leave, the period of service is reduced by the number of days served as unpaid leave.
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 four weeks/year for working 5-10 years and five weeks/year for more than ten years was part of the old labour law and is not valid anymore [3].
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. This shall be done 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 the deposit without the person deserving the due amounts being known, the court shall transfer these amounts to the State Public Treasury.
Can 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
READ NEXT: How Expatriates Can Change Jobs in Qatar
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 the Ministry website.
What can I do if my employer refuses to pay end of service gratuity?
If your employer refuses the end of service gratuity without any reason, you can file a complaint at the Ministry of Labour.
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- Qatar Labour Law on Working Hours and Overtime
- Qatar Labour Law on Sick Leave and Maternity Leave
- Qatar Labour Law on Annual Leave and Holidays
- 10 Easy Ways To File Labour Complaint In Qatar
- Amerni Qatar Mobile App: User Guide
- Freelance Visa In Qatar: Is It Legal?
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References:
[1] Law No. 14 of 2004 – Article 81
[2] Law No. 14 of 2004 – Article 54
[3] Law No. 14 of 2004 – Article 13 is about repealing Law No. 3 of 1962 – Article 24
Could you help us to find the legal source of this information saying that gratuity is for 3 weeks per year irrespective of number of years of work ?
Hi Sampath, Legal sources are already given. See the References section at the end of the article (Law No. 14 of 2004 – Article 54)
Hello, I’m Jeff how much the company surposed to pay gratitude for four years with one vacation
Hi Jeff, If gratuity is not mentioned in the contract, it will be 3 weeks’ basic salary for each year.
Hi..i just wanna ask if the vacation months is counted for calculating the gratuity..lm already ,7years and 5months here in qatar…At the same employer.
Hi Imee, For gratuity, only the starting date and end date are considered. Vacations in between are not deducted.
Hello! I want to ask this question because of planning to resign after 1 year of job here in my company. Can I get my gratuity even the contract stated 2 years if I’m going to resign? Thanks.
Hi Louie, As per Qatar Labour Law, gratuity should be paid after 1 year (for private companies).
Sir i have already completed 7 years of service in my company,am i entitled to recieve 4 week per year gratuity? Thank you
Hi Pedro, As per the current rule, it is 3 weeks per year (irrespective of the number of years).
Hi sir, I just ask something I already complete 1 year 2 month.they give gratuity but they deduction medical.it’s ok.
Hi Dharbendra, Was this deduction for unpaid medical leave?
Good morning sar my name is md Mukul Hossain How to calculated my 12 years gratuity
Hi Md Mukul, It is 21 days basic salary x 12 years.
Hi.. I just wanna ask if the vacation months is counted for calculating the gratuity.. Im already 6 years and 10 months here in qatar. In the same employer.. First vacation, i had 2 months.. And on my 2nd vacation is 2 months also.. How can i calculate my gratuity? I will end my service in 1st week of december.
Hi Valerie, If you are continuously employed with the same employer, vacation months are also included in the gratuity calculation.
hi everyone im in the same sponsor but my sponsor give me to his friend in salon I work here more then a year do I take my graduity if my new boss wanted to closed salon
Hi Irene, Yes, you are entitled to receive gratuity if you have worked more than 1 year.
Hi how to calculate my graduity if im working 3 yrs and 2 months
Hi good day sala malaykum madam and sir I want to ask something regarding my gratuity or my end of service and actually i am already transferred to a new company and I was working my previous company more than 5 years with contract and every a year I have a free vacation with a free ticket but within 5 years I use it my vacation here in doha or local vacation only without ticket, so now my question is if it’s possible to get my ticket money with my gratuity if I’m file the complaint again my previous company.And since last my period I have already 4 months now and the computation of my benefits is only 4000riyal something not including at all so I hope you can read my massage and you give it an necessary action as soon as possible for that issue..Godbless at all
Hi Arjie, If an annual flight ticket is mentioned in your contract, you can file a complaint.
My co-worker who resigned few months ago, what he got in his ESB was the total amount of what was deducted from him from every salary of the month for 6 years though our basic increases every year because of increment in salary but there is also an increase in deduction. In this situation I have, what would the best solution on this matter? should I really take legal action? I just don’t know what would be the best? As I summed up this they are not really paying us our gratuity, in my last contract and my current contract which will end by next year and how to get our proper gratuity from my company?
Hi Jojo, If your contract says the basic salary is QR 4417, how can you prove that your salary is QR 4700? Is there any written record?
That’s actually part of the issue also it not written but if you ask them how much really is our basic they would say it’s 4700 but using the gratuity calculator of the basic of 4417 for 1 year from April 2016 to March 2017 it does not match with the total of what you will get from 283 x 12. Where did they get that 283? but if you add it to 4417 you’ll get our technician’s standard basic starting salary which is 4700.
Hi Jojo, If there is no written contract or offer letter for 4700, it would be difficult to take any legal action. The company can claim the employee’s basic salary is only 4417, and they are paying more than 21 days of gratuity (283 per month for a year is 3396, which comes to around 23 days’ salary). Labour court or Ministry will only consider written agreements.
Can l use my last working month as my notice period if l wanted to resign?
Example if l completed 23 month can l use the 24th month as my notice period and Will the company consider it as l completed two years?
Hi Nana, Normally this is possible. However, you should discuss this with your employer.
can i get the gratuity amount before termination or resignation
Hi Binb, No, as per law, gratuity should only be given as the final settlement.
Some companies give loans against gratuity, depending on their HR policy, but this is optional.
is the End of Service Gratuity deducted for from the employees salary every month until the end of contract?
Hi Jojo, No, the employer cannot deduct the End of Service Gratuity from the salary. This should be paid extra.
It has been done to me and my co-workers ever since I joined my company back in 2012 on my first contract and in my second contract that started in April 2016. Should I or we(my co-workers) take legal actions?
Hi Jojo, As per law, End of Service gratuity should not be deducted from employees. If you can prove your company did this, you can file a Labour complaint.
It is written in my contract the old one and new one, when was this law for Gratuity passed? Because my company is an international company and they do have legal team and advisors and maybe they found a loophole in the law for them to implement this deduction our contract. An example for my Basic was 4700 in the beginning of the contract in 2016 but what is written is Salary: 4417QR per calendar month. End if service Benefit: 283Qr per calendar month. which if you add is 4700
Hi Jojo, The gratuity law has been in place for several decades. There is a legal provision for a retirement system where the employer and employee both contribute. In such a case, the net benefit you receive should be greater than the regular gratuity. The company cannot simply deduct your salary and pay back the same later. It is acceptable if they pay back the deduction along with their contribution. You can check this legal article.
Could you please share your reference on the amendments of the said law wherein the worker should be paid four week/year for working 5-10 years and five weeks/year for more than ten years was PART OF THE OLD LABOUR LAW AND IS NOT VALID ANYMORE.
This would be very helpful for everyone.
Thank you in advance!
Hi Lee, Law No. 14 of 2004 – Article 13 is about repealing Law No. 3 of 1962 (including Article 24, which was the old law). You can see the official links at the bottom of the above article (References section – No 3).
Hi sir ..how much will my employer paid for me for 3 years and 6 months in service for them
Hi Dorothy, It will be 21 days basic salary x 3.5 years.
I’m currently working with an employer for 10 months and not 1 year completed.
in this case, I can able to get the end-of-service gratuity?
Hi Sahul, Minimum one year service is required.
Hi Ian Cristina lamson I work for 4 yrs straight in my employer the 2yrs extend are no contract signing, my employer not giving me my gratuity now I am comeback again. What will I do? Or how I take my 4 yrs gratuity on my employer?
Hi Cristina, You will have to file a complaint with the Labour Department.
Good day I have asking for help about my salary and gratuity to my company, sunrise group/jollibee qatar, I’ve been working for 3 years and I’ve decided on last July 31 2022 to resigned and exactly on that date I give my 1 month notice resignation letter, on August 31 2022 is my last day of work because I have apply on another country, on August 25, 2022 I give to the hr all my documents to travel in another country September 2 2020 is my flight but the problem is they will not give my August salary 2,415 riyals regular overtime 104 hours cancel day off overtime 46 hours and 3 years gratuity, now I’m already outside qatar is this possible to get my money? Thank you so much and have a blessed day every.
Hi Melvin, Since you are already outside the country, it may be difficult to raise a complaint.
Hi I’m already finish more than 5yrs 2016 January to September 2022 how to calculate my gratuity. 21days every yr
Hi Katrina, In your case, it is 5 x 21 x daily basic salary.