Gratuity hisab in Qatar: how is gratuity calculated?
Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the Qatar Labour Law; not legal advice.
Your gratuity hisab in Qatar comes down to one formula: (last basic monthly salary ÷ 30) × 21 days × years of service. Qatar’s Labour Law gives you at least 21 days of basic pay for every year you worked, once you complete 1 year of continuous service. Only your basic salary counts — housing, transport and other allowances are left out. On a basic salary of QAR 3,000, 5 years of service gives you QAR 10,500.
The formula, step by step
Qatar uses the simplest gratuity rule in the Gulf: three weeks of wages for each year of service. The daily wage is your last basic monthly salary divided by 30, and each year of service earns you 21 of those daily wages. There are no year bands and no ceiling like in the UAE — it is one flat rate from the first qualifying year.
- Daily wage = last basic monthly salary ÷ 30
- Gratuity = daily wage × 21 × years of service
- Part-years count proportionally: 6 months count as half a year
- Minimum service to qualify: 1 full year of continuous service
- Your contract can promise more than 21 days a year — the law sets a floor, not a ceiling
That last point matters. Article 54 of the Labour Law says the award is “not less than” three weeks’ wages for each year, so any contract term that gives you more — a month per year, for example — overrides the legal minimum and that higher figure is what you are owed.
Examples at common salaries
| Basic salary (QAR/month) | Service | Gratuity (QAR) |
|---|---|---|
| 2,500 | 4 years | 7,000 |
| 3,000 | 5 years | 10,500 |
| 3,000 | 10 years | 21,000 |
| 5,000 | 8 years | 28,000 |
| 4,000 | 6.5 years | 18,200 |
These figures use the legal minimum of 21 days a year. If your contract promises more per year, repeat the same steps with that number instead of 21. To find your own service length in years and months, use our free service length calculator.
What counts and what doesn’t
The single biggest misunderstanding in any gratuity hisab is which salary figure goes into the formula. In Qatar the law is clear: gratuity is calculated on your last basic salary — the fixed monthly amount before anything is added on top.
Left out of the calculation: housing, transport, food, phone and similar allowances; overtime pay; bonuses, commissions and performance awards. All of these can be a large part of your take-home pay, which is why the final gratuity figure so often feels lower than workers expect.
What goes in: your last basic salary, not the one you started on. A raise in your final year lifts the entire award, because the whole calculation is rebuilt from the most recent figure. Check a recent payslip — the basic salary line is the one that matters.
Related reading: skip the arithmetic with our free Qatar gratuity calculator, and read what to do if your company does not pay.
Who is eligible
You qualify after 1 full year of continuous service with the same employer. Leave before 1 year and, by law, no gratuity is due — but note that pay for unused annual leave is separate and is still owed even when gratuity is not.
Resigning does not reduce your amount. Unlike Saudi Arabia’s resignation tiers, Qatar pays the full award whether you resign or your contract ends another way — the law does not link the amount to who ended the employment. The one exception is dismissal for gross misconduct under Article 61, where the employer may end the contract without paying the award.
Domestic workers are covered by a separate law with its own end-of-service rules, so this guide is for private-sector employees under the main Labour Law. If your contract gives you a better deal than the legal minimum — some companies offer a full month per year — the contract figure is what you are owed.
Worked example: QAR 3,000 basic, 5 years
Basic salary QAR 3,000, continuous service 5 years. Step 1: daily wage = 3,000 ÷ 30 = QAR 100. Step 2: each year earns 21 daily wages: 100 × 21 = QAR 2,100 per year. Step 3: multiply by the service: 2,100 × 5 = QAR 10,500. Step 4: check your contract — if it promises more than 21 days a year, redo step 2 with that number. That is your gratuity hisab, and the same four steps work for any salary.
Common mistakes when doing your gratuity hisab
These are the errors that cost workers the most, and each one can move the final figure by thousands of riyals:
- Using gross salary instead of basic salary. Allowances inflate the estimate and lead to arguments at settlement time, because the employer’s figure — built on basic salary — will look “too low”.
- Expecting gratuity before 1 year. The 1-year line is everything: 11 months of service gives nothing by law, while 12 months and a day gives the full first year.
- Forgetting part-years count. Six extra months are half a year in the formula, not zero. Workers who round down their service regularly short-change themselves.
- Using your starting salary. The formula rebuilds everything from your last basic salary, so old figures from years ago understate the award after a raise.
- Copying the UAE formula. The UAE’s 21/30-day year bands and 2-year cap do not exist in Qatar — applying them here produces a wrong number.
Check your figure in five minutes
Run through this checklist before you accept any number — yours or your employer’s:
- Take your last basic salary from a recent payslip, with all allowances stripped out.
- Count your continuous years of service, converting extra months into fractions of a year.
- Multiply: (salary ÷ 30) × 21 × years — or skip the arithmetic with the free Qatar gratuity calculator.
- Compare against your contract — it may promise more than the legal minimum of 21 days a year.
- Ask for the employer’s written calculation and do not sign a final settlement you do not fully understand.
Frequently asked questions
Frequently asked questions
How is gratuity calculated in Qatar?
Take your last basic monthly salary, divide it by 30 to get the daily wage, then multiply by 21 days and by your years of service. Part-years count proportionally, and you qualify after 1 year of continuous service.
Is Qatar gratuity calculated on basic salary or total salary?
Basic salary only. Housing, transport, food and other allowances, overtime and bonuses are all excluded from the calculation.
How much gratuity do I get after 5 years in Qatar?
On a basic salary of QAR 3,000, 5 years gives QAR 10,500: (3,000 ÷ 30) × 21 × 5. Scale it to your own salary with the same steps.
Do I get gratuity if I resign in Qatar?
Yes — after 1 year of service, resignation pays the full award, the same as termination. The only exception is dismissal for gross misconduct.
Does part-year service count toward gratuity?
Yes. Service counts proportionally, so 6 extra months count as half a year in the formula rather than being ignored.
Work out your own amount
Enter your dates and salary to see your end-of-service pay instantly.
More questions
- What is the notice period?
- How much annual leave, and how is it paid?
- Leaving before 1 year: what do you get?
- Company not paying? How to complain
Sources
This guide is based on the Qatar Labour Law (Law No. 14 of 2004). Labour laws are amended from time to time; for the latest version, always check the official gazette of Qatar.