How Qatar end-of-service gratuity is calculated

By Zulu Calculator · Updated 12 October 2026 · Gulf jobs

In Qatar, your end-of-service gratuity is at least three weeks of basic salary (21 days) for each year of service, once you have worked for at least one year. The daily wage is your last basic monthly salary divided by 30, and part years are paid in proportion. This comes from Article 54 of Qatar Labour Law No. 14 of 2004. On a basic salary of QAR 8,000 for 6 years and 4 months, the gratuity is QAR 35,466.67.

This guide explains who gets it, which salary counts, how part years and unpaid leave work, and what else goes into your final settlement. To skip the maths, use the Qatar gratuity calculator with your own dates and salary.

Who gets gratuity in Qatar?

The rule covers private-sector workers under Labour Law No. 14 of 2004 who have completed at least one year of service. It does not matter whether you resign or your employer ends the contract.

• Covered: expat and other private-sector employees with one year or more of service.
• Domestic workers get the same three weeks per year after one year of service, under a separate law (Law No. 15 of 2017).
• Not usually covered: Qatari nationals in the state pension scheme. They normally get pension rights instead of a gratuity.
• Under one year of service: the law gives no gratuity.

How is gratuity calculated in Qatar?

There are three steps. First find your daily wage, then the amount for one full year, then multiply by your years of service.

daily wage = last basic monthly salary ÷ 30
gratuity per year = daily wage × 21 days
gratuity = gratuity per year × years of service
years of service = (days worked − days of unpaid leave), in years

Service runs from your joining date to your last working day, both days included. Whole months count as twelfths of a year. Extra days are counted on a 365-day year.

Because 21 days is 21 ÷ 30 = 0.7 of a month, a quick check is: gratuity ≈ 0.7 × basic monthly salary × years. If your contract gives a full month a year, it is simply basic salary × years.

Gratuity for a full year at different salaries

Does housing allowance count for gratuity in Qatar?

No, not under the law. Gratuity is based on your last basic wage. Housing, transport, food and other allowances are left out. Your contract can be more generous: some employers pay gratuity on full salary, or give four weeks (28 days) or a month (30 days) per year. A contract can give you more than the law, but never less.

Read your contract and look for words like "end of service", "gratuity" or "indemnity". If it only says "as per Qatar Labour Law", the 21 days on basic salary apply.

Worked examples

Example 1: 6 years and 4 months on QAR 8,000

You joined on 1 May 2019 and your last working day is 31 August 2025. That is 6 years and 4 months, or 6.33 years. You had no unpaid leave.

• Daily wage: 8,000 ÷ 30 = QAR 266.67
• One full year: 266.67 × 21 = QAR 5,600.00
• Gratuity: 5,600 × 6.333 = QAR 35,466.67

That is about 4.43 months of basic salary. If your contract gave 30 days a year instead, the same service would give QAR 50,666.67. If it paid 21 days on a full salary of QAR 11,500 (basic plus allowances), you would get QAR 50,983.33.

Example 2: 2 years, 8 months and 15 days, with unpaid leave

You worked from 1 April 2023 to 15 December 2025 on a basic salary of QAR 5,000, and took 20 days of unpaid leave.

• Service: 2 years, 8 months and 15 days, minus 20 days of unpaid leave = 2.653 years
• One full year: 5,000 ÷ 30 × 21 = QAR 3,500.00
• Gratuity: 3,500 × 2.653 = QAR 9,285.39

Example 3: just over one year, and why unpaid leave matters

You worked from 1 February 2024 to 28 February 2025 on QAR 5,000 basic. That is 1 year and 1 month, so you get 3,500 × 1.083 = QAR 3,791.67.

But if you also took 45 days of unpaid leave, your counted service drops to about 0.96 years. That is under one year, so the gratuity is zero. If you are close to the one-year line, check your unpaid leave days before you hand in your notice.

What else is in your final settlement?

Gratuity is only one part of what you are paid when you leave. Your final settlement usually also includes:

• Unused annual leave. Qatar gives at least 3 weeks (21 days) of paid leave a year, or 4 weeks (28 days) once you have 5 years of service (Article 79). Unused leave is paid in cash on your basic wage when the job ends, and you cannot waive it (Article 81). Most employers use basic ÷ 30 as the daily rate; that is common practice, not a formula written in the law. For example, 12 unused days on QAR 8,000 basic is 12 × 266.67 = QAR 3,200.00. The Qatar leave salary calculator works out how much leave you have earned and what it is worth, and annual leave in Qatar explained covers the rules in full.
• Notice pay. If you are told to stop work without working your notice, the notice period is paid. Since Law No. 18 of 2020, notice is one month for up to two years of service and two months after that.
• Salary still owed for days worked in your last month, any unpaid overtime, and any ticket home your contract promises. Overtime is paid on basic wage plus at least 25%, or plus at least 50% between 9 pm and 6 am (Article 74). Check old claims with the Qatar overtime calculator.
• Minus loans or advances you still owe your employer.

Common mistakes

• Using full salary instead of basic. Unless your contract says otherwise, only basic salary counts.
• Dividing by 26 or 22 working days. The daily wage for gratuity is basic ÷ 30.
• Rounding service down to whole years. Part years are paid. 6 years and 4 months is 6.33 years, not 6.
• Forgetting unpaid leave. Days of unpaid leave are taken off your service.
• Thinking resigning cuts the gratuity. In Qatar it does not, if you give proper notice. (Saudi Arabia does cut it for resignation; see the Saudi end-of-service calculator.)
• Mixing up gratuity and leave pay. They are separate amounts. One does not replace the other.

What if my employer pays less or disagrees?

1. Ask for the calculation in writing. Ask which salary, which dates and how many days per year were used. Check the start date, the unpaid leave days and which salary was used.
2. Check your contract and any written company policy. If it promises more than 21 days or full salary, the contract applies.
3. Talk to HR first. Bring your own working, for example a printout or share link from the calculator.
4. Contact the Ministry of Labour. If you cannot agree, you can raise a complaint with Qatar's Ministry of Labour. Keep copies of your contract, payslips and any messages.

Quick summary

• At least 21 days of basic wage per year of service (Article 54, Labour Law No. 14 of 2004).
• Daily wage = last basic monthly salary ÷ 30.
• Nothing under one year; part years paid in proportion after that.
• Unpaid leave does not count as service.
• Resigning does not reduce it, with proper notice.
• Your contract can give more, never less.

Comparing countries? See end-of-service gratuity in all six Gulf countries. Working in the UAE instead? The rules there are different: see UAE gratuity rules explained or the UAE gratuity calculator.

Rules checked against Labour Law No. 14 of 2004 (Articles 54, 74, 79 and 81) and its 2020 amendments, as used by our calculators (checked 9–12 October 2026).

This guide explains the rules in plain English for planning. It is not legal, financial or flight-operations advice; check your contract, the official source linked above, your employer or your operator.