There are a few things you need to know at the end of your employment in Qatar. One of them is gratuity in Qatar for the purpose of your service. This is what the law says about gratuity for end of service and how to calculate it according to Qatar labor law.
In this article, we are going to know what is gratuity in Qatar, how to calculate it, what are the legal bases to know and what factors to consider when being eligible for gratuity.
What is The Concept of Gratuity In Qatar
Gratuity in Qatar is a lump sum monetary payment receive by an employee at the end of his or her term of office, provided the period of service is more than one year. The gratuity payment is a liability to the employer as his service progresses.
An employee is entitled to receive the gratuity payment at the end of his or her service. When he/she resigns or receives a letter of dismissal, he/she is also entitled to receive the gratuity payment. According to article number 54, the employee is entitled to gratuity for a fraction of the year working, provided that he/she has rendered more than one year of continuous service.
Understanding Gratuity in Qatar
If you have completed at least one year of continuous employment, you are entitled to gratuity in Qatar from your current employer upon termination of your service due to resignation or dismissal, provided that the contract is not been terminated due to any violation as indicated.
In Article 61 of the Labor Law. The end of service gratuity applies to all workers in Qatar covered by the Labor Law No. (14) of 2004 and the Domestic Workers Law No. (15) of 2017.
This is part of the Qatari Labor Law which stipulates a sum of money to be pay to a departing employee. You can also approach a Doha recruitment company to handle your employment application while you are trying to settle end of service benefits.
The terms and conditions will be included in the employees’ contracts. Normally, these contracts is terminate upon expiration of their duration or prematurely under various conditions, termination or resignation of the employee.
Legal Regulations
Some basics about end of service Qatar labor law are:
- According to Article 54 of the Labor Law, the employee is entitled to a minimum basic salary of three weeks for each year of employment, as a gratuity at the end of service.
- In the Article 81 of the Labor Law states that if the employment contract is terminate before the employee enjoys his annual leave, the employee becomes entitle to receive payment in lieu of annual leave equivalent to the salary for the days of leave for which he is entitled.
- Article 15 of the Law states: In addition to the amounts due to the worker at the end of his period 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 entry into force of this Law.
- The gratuity in Qatar labor law shall be determine and agreed upon by both parties, provide that it shall not be less than three weeks pay for each year of service. The Worker is also entitled to receive a gratuity for fractions of a year in proportion to the total length of service.
Expected Tipping Amounts
Employees have the legal right to gratuity in Qatar. This payment serves as a financial safety net for those who have worked a specified period for their employer. Qatari law provides that employers must offer gratuities in specific circumstances.
This includes when an employee resigns or when their employment contract is terminated. However, there are occasions when employers may attempt to withhold or delay these payments.
Under Article 61, an employer is entitled to immediately terminate an employees contract without notice or obligation to pay gratuity in Qatar for termination of service in specific circumstances of gross misconduct.
Cultural Factors
- The last basic salary receive is the basic amount used to calculate the bonus. If the type of employment changes, it does not affect the amount of the bonus paid. Unpaid leave is not included in the service decision.
- If an employer offers a pension plan to employees, they are not eligible to graduate at the end of service. Employees can get a clear picture of the post-graduation calculation in Qatar to obtain the full benefits offered by the plan.
- The number of days used to calculate gratuity The gratuity calculation is based on 21 days for each year of service. The last base salary is the basis for calculating the gratuity amount.
- Employee is entitled to a minimum of three weeks of base salary, for each year of employment, as an end-of-service gratuity. If your employer refuses to pay your graduate without a specific reason, you may file a complaint with the labor court..
How to compute gratuity in Qatar?
In Qatar, gratuity is calculated according to Qatar labor law, this is the guide to know how to compute gratuity in Qatar:
- Open the calculation page.
- You will then see fields to complete in Arabic language.
- Enter your date of joining in the first field, according to your contract.
- Next, your last date of employment in the second field.
- Also, put your monthly base salary in the third field, according to your contract.
- Now enter the graduated days on a card for each year. Here you have to refer to your contract.
- Finally, click on the button below and then you will see the results.
This service ensures more transparency so that the foreign involve is aware of their legal rights.
Calculation of gratuity in Qatar after 5 years
If your period of service is less than 5 years, you will receive 3 weeks of your salary as gratuity. Here is a simple formula to calculate gratuity in Qatar after 5 years:
Basic salary/30 (one month) X 21 days (three weeks) x Year.
For example: suppose you work in a company for 2 years and your salary is 2000 QAR, then:
QAR 2000 ÷30 = QAR 66.66 (one day salary) QAR 66.66 x 21 = QAR 1,400 (21 days salary)
QAR 1,400 x 2 = QAR 2,800 (your total of 2 years bonus)
If your gratuity calculation in Qatar after 10 years, then you will receive 4 weeks of your salary as gratuity.
How to calculate end of service gratuity in qatar 2024
The calculation of gratuity in Qatar is based on 21 days for each year of service. The last base salary is the basis for Qatar gratuity calculator. The employer can deduct from the gratuity the amount to be pay by the employee.
Qatar Ministry of Administrative Development, Labor and Social Affairs. Offers an online service where applicants can calculate the end of service gratuity using their official website. If you want to learn more about the Labor Law related to End of Service Gratuity and how to calculate it using the Ministry’s online tool.
Calculate Gratuity on Ministry Website
It provides an online service that allows employees or applicants to calculate the end-of-service gratuity on its official website.
However, you will find this page in Arabic language only. All they have to do is follow these steps:
- Open the calculation page, where you will see the following fields written in Arabic: End of Service Gratuity.
- In the first field, enter your joining date, according to your contract.
- the second field, enter your Last Work Date
- As well, the third field, enter your Basic Monthly Salary, according to your contract.
- For last, fourth field is where you must enter the accrued Gratuity Days for each year. You have to check your contract for this one.
Final Thoughts
This financial benefit is an important component of an employee’s compensation package. It is essential to know how to determine it accurately.
Tipping in Qatar is not just a legal requirement. It is a form of financial security that recognizes an employee’s dedication and commitment to his or her job. If you would like to learn more about this or other topics of interest to you. We invite you to visit our website now.
