What is Gratuity Entitlement in Qatar?
End of Service Gratuity (EOSG) is a mandatory benefit provided to employees in Qatar as per the Qatar Labor Law. It is a financial reward given by an employer to an employee upon the completion of their service, whether through resignation, termination, or retirement. The gratuity is calculated based on the employee’s basic salary and years of service with the company.
Employees in Qatar become eligible for gratuity after completing one year of continuous service with the same employer. The gratuity amount is determined by multiplying 21 days of basic salary per year of service by the total number of years worked. The gratuity is calculated proportionally if an employee has worked for only a portion of a year.
Factors Affecting Gratuity Calculation
Several factors influence the calculation of gratuity in Qatar, including:
- 1. Length of Service – Employees must complete at least one year of service to be eligible for gratuity.
- 2. Last Drawn Salary – Gratuity is calculated based on the basic salary at the time of separation.
- 3. Type of Separation – Whether the employee resigns or is terminated does not affect the calculation.
- 4. Partial Years Worked – If an employee has worked for only part of a year, the gratuity is calculated proportionally.
- 5. Deductions – Employers may deduct any outstanding financial obligations (such as loans) from the gratuity amount.
Your Questions Answered
Who is eligible for gratuity in Qatar?
Employees in Qatar become eligible for End of Service Gratuity (EOSG) after completing at least one year of continuous service with the same employer.
How is gratuity calculated in Qatar?
Gratuity is calculated based on the employee’s last drawn basic salary and the number of years worked. The standard formula considers 21 days of salary per year of service, divided by 30 to determine the daily wage.
Is gratuity applicable to all employees?
Yes, all employees covered under Qatar Labor Law are entitled to gratuity unless otherwise stated in their employment contract. However, employees working in government or domestic work sectors may have different gratuity terms.
What happens if an employee has worked for less than a full year?
If an employee has worked for part of a year, the gratuity is calculated proportionally based on the number of months worked.
Are bonuses and allowances included in gratuity calculations?
No. The gratuity calculation is based only on the basic salary and does not include allowances, bonuses, or commissions.
When is gratuity paid to an employee?
Gratuity must be paid at the end of employment as part of the final settlement. Employers are required to settle gratuity payments promptly to avoid legal penalties.
Can an employer deduct money from an employee’s gratuity?
Yes. Employers can deduct any outstanding amounts owed by the employee (such as unpaid loans) from the gratuity amount.
What happens if an employee is dismissed for misconduct?
If an employee is terminated for reasons specified under Article 61 of Qatar Labor Law (such as misconduct, negligence, or breach of contract), they may forfeit their gratuity entitlement.
What is the maximum gratuity payout in Qatar?
Qatar Labor Law does not specify a maximum gratuity limit; it depends on the employee’s basic salary and years of service.
Disclaimer
This gratuity calculator provides an estimate of the end-of-service gratuity based on the Qatar Labor Law. It does not consider additional benefits such as leave encashment, bonuses, or other contractual agreements. The actual gratuity payout may vary based on the specific employment contract and the latest government regulations.
Qureos is not responsible for any inaccuracies; this tool is intended for guidance only and should not be used as a legal or financial consultation substitute.
