Qatar end-of-service gratuity: how it is calculated (2026)
A worker in Qatar with at least one full year of service is owed an end-of-service gratuity of no less than three weeks' basic wage for each year, with part years paid pro rata. It is worked out on the last basic wage, not total pay, and must be paid with the other final dues by the end of the next working day after the contract ends.
End-of-service gratuity in Qatar
- Three weeks' basic wage per year
- Final dues by next working day
- Written calculation for every settlement
Qatar updates the labour dispute route that gratuity claims go through
What happened
Law No. 9 of 2026, published in the Official Gazette on 25 June 2026, rewrote Article 115 bis of the Labour Law. A dispute over the contract or the law now goes to the Ministry's competent department for an amicable settlement first. If that fails within the set time, the department refers it to the Labour Dispute Settlement Committee.
What it means for you
The gratuity formula in Article 54 did not change. What changed is the route a worker takes to claim unpaid end-of-service pay, so the paperwork behind each final settlement matters more.
Dates to know
- 11 June 2026Law No. 9 of 2026 issued
- 25 June 2026Published in the Official Gazette, Issue 11
Source: Ministry of Justice, State of Qatar. We check this page every week. Last checked .
The end-of-service gratuity is a lump sum the employer pays a worker in Qatar when the employment ends, on top of any other sums due. It is set by Article 54 of Labour Law No. 14 of 2004 and paid by the employer alone. There is no monthly contribution scheme for expatriates. The Labour Law does not cover government employees, the armed forces and police, petroleum companies set up by or with QatarEnergy, domestic workers, casual workers and, since Law No. 9 of 2026, part-time and freelance workers.
How is the end-of-service gratuity calculated in Qatar?
The gratuity is at least three weeks' wage for each year of service, calculated on the worker's last basic wage. The parties can agree a higher amount, but not a lower one. Part years are paid in proportion to the time served.
Article 54 sets the three-week floor and names the last basic wage as the base. Article 72 repeats that the gratuity is worked out on the basic wage at the date it falls due. For a piece worker, the base is the average wage over the three months before that date. Article 54 does not say how to turn a monthly wage into a weekly one, so the method is best written into the contract.
Our arithmetic: what does the gratuity come to after four and a half years?
Take a worker whose last basic wage works out at QAR 2,000 a week and who leaves after four and a half years. Three weeks a year gives QAR 6,000 for each full year, so QAR 24,000 for four years. The half year adds QAR 3,000, for a total of QAR 27,000.
This is our own worked example using the statutory minimum only. It ignores any higher rate agreed in the contract and any sums the employer is allowed to deduct. Allowances are left out because the base is basic wage.
Who qualifies for the gratuity?
Any worker under the Labour Law who has completed one full year of service or more. A worker who leaves before a full year gets no gratuity. Article 54 sets no lower rate for a worker who resigns.
Service counts as continuous if the contract ended for a reason other than an Article 61 dismissal and the worker is taken back on within two months. A worker who ends the contract early because the employer broke its duties, used violence, misled them at hiring or ignored a serious safety risk keeps the full gratuity under Article 51. The same applies after a final ruling in the worker's favour by a Labour Dispute Settlement Committee.
What counts as basic wage for the gratuity?
Basic wage is the rate paid for the work over a set time, or by piece or output, and it includes the annual increment only. Housing, transport and other allowances and bonuses are part of the wider wage, not the basic wage, so they do not raise the gratuity.
Article 1 of the Labour Law defines the two terms separately. Because the gratuity follows the basic wage, the split between basic pay and allowances agreed at hiring sets the end-of-service cost years later.
When can an employer refuse or reduce the gratuity?
An employer may dismiss without notice and without a gratuity only in the eleven cases in Article 61, such as forged documents, disclosing the firm's secrets or more than seven days' unexplained absence in a row. It may also deduct from the gratuity any sums the worker owes it.
Article 61 also covers serious financial loss caused by the worker's error, repeated breach of written safety rules or core duties after a written warning, being drunk or drugged at work, assault and a final conviction for a crime of honour or trust. Since Law No. 9 of 2026 it also covers a worker who incites others to strike for unlawful reasons and disrupts the business. An employer that runs a retirement scheme worth more than the gratuity does not pay both, under Article 56.
When must the gratuity be paid?
With the other final dues, before the end of the working day after the contract ends. If the worker left without giving the notice in Article 49, the employer has up to seven days from the day the worker left.
This deadline comes from Article 67. Breaking it can lead to up to one month's imprisonment, a fine of QAR 2,000 to QAR 6,000, or both, under Article 145. If a worker dies in service, the employer must deposit the wage, other dues and the gratuity with the competent court within 15 days, with a report showing how they were calculated. Separately, the employer must arrange a non-Qatari worker's return home within two weeks of the contract ending, at its own cost.
How does a worker claim an unpaid gratuity?
The dispute goes first to the Ministry for an amicable settlement within seven days. If that fails, it is referred to a Labour Dispute Settlement Committee chaired by a judge, which must decide within three weeks of its first hearing. Claims are barred one year after the contract ends.
Either side can appeal a committee decision to the Court of Appeal within 15 days, and the decision can be enforced while the appeal runs unless the court orders otherwise. Filing the settlement request pauses the one-year limit in Article 10 while the steps run. Workers' claims are heard quickly and are free of court fees.
Key figures
| Detail | Value |
|---|---|
| Gratuity floor, Article 54 | At least three weeks' wage for each year of service, for a worker with one full year or more. Part years are paid in proportion. (source) |
| Calculation base, Articles 54 and 72 | The last basic wage at the date the gratuity falls due. For piece workers, the average wage over the previous three months. (source) |
| Basic wage defined, Article 1 | The rate paid for work over a set time or by piece or output, including the annual increment only. Allowances, bonuses and other payments belong to the wider wage. (source) |
| Deductions and continuity, Article 54 | The employer may deduct sums the worker owes it. Service is continuous if the worker is re-hired within two months after an ending that was not an Article 61 dismissal. (source) |
| Retirement schemes, Article 56 | An employer whose retirement or similar scheme gives the worker more than the gratuity does not pay both. If the scheme gives less, the employer pays the gratuity and refunds the worker's contributions. (source) |
| Payment deadline, Article 67 | Wage and all dues by the end of the working day after the contract ends, or within seven days if the worker left without Article 49 notice. (source) |
| Penalty for late final dues, Article 145 | Breach of Article 67 is punishable by up to one month's imprisonment, a fine of QAR 2,000 to QAR 6,000, or both. (source) |
| Loss of gratuity, Article 61 | Dismissal without notice or gratuity is allowed only in the listed cases, including forged documents, disclosing secrets, more than seven consecutive or fifteen separate days' unexcused absence in a year, and a final conviction for a crime of honour or trust. (source) |
| Death in service, Article 55 | The employer deposits the wage, other dues and the gratuity with the competent court within 15 days of the death, with a detailed calculation, and sends a copy to the Ministry. (source) |
| Time limit for claims, Article 10 | Claims under the Labour Law or the contract are barred one year after the contract ends. Workers' cases are heard quickly and are free of court fees. (source) |
| Dispute route, Article 115 bis (Law No. 9 of 2026) | Disputes go to the Ministry for amicable settlement within seven days, then to the Labour Dispute Settlement Committee within three working days if unresolved. Filing pauses the time limit for claims. (source) |
Frequently asked questions
Does a worker who resigns in Qatar still get a gratuity?
Yes, once they have a full year of service. Article 54 sets no lower rate for resignation. The gratuity is lost only on a dismissal for one of the cases in Article 61.
Is the Qatar gratuity capped?
Article 54 sets no cap. It sets a floor of three weeks' basic wage for each year of service, and the contract can agree more.
Do housing and transport allowances count towards the gratuity?
No. The gratuity is calculated on the last basic wage, which includes the annual increment but not allowances, bonuses or other payments.
What happens if a worker leaves before one year?
No gratuity is due. The worker is still owed the wage earned and any other sums due, paid by the Article 67 deadline.
How long does a worker have to claim an unpaid gratuity?
One year from the end of the contract, under Article 10. Filing a dispute with the Ministry pauses that time limit while the settlement steps run.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
