Qatar Labour Law No. 14 of 2004, Article 54: end-of-service gratuity
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To check this, or for anything official:
Qatar's Ministry of Labourmol.gov.qa
Know your gratuity in QAR under Article 54: three weeks for every year, on the basic wage.
Enter your last basic wage and your length of service. Article 54 gives at least three weeks' wage for every year of service, with no bands, once you complete a full year, and your contract or employer policy may give more. It runs on the last basic wage alone, with no allowances.
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How is end-of-service gratuity calculated?
- Monthly wage = basic only
- after 0 years: 21 days of wage per year
- Gratuity = the bands added, × the entitlement fraction
Symbols
- wage
- The basic wage alone, without allowances
- years
- Service including fractions of a year, not whole years only
- entitlement fraction
- Full on termination or contract expiry, and possibly reduced on resignation depending on the country
What is the gratuity on 10,000 and 7 years of service?
An employee whose last basic salary is 10,000 QAR is terminated by the employer after 7 years of service.
- Daily wage: 10,000 ÷ 30 = 333.33 QAR
- One year's gratuity: 21 × 333.33 = 7,000 QAR
- Total gratuity: 7 × 7,000 = 49,000 QAR
Had the same 7 years ended in resignation, the amount would still be 49,000 QAR with no reduction; 3 years of service would give 21,000 QAR.
What counts towards the calculation, and what does not?
Under Article 54 of Qatar Labour Law No. 14 of 2004, a worker who has completed one year or more of service is owed an end-of-service gratuity calculated on the last basic wage, with allowances excluded, of no less than three weeks (21 days) of that wage for every year of service.
The three weeks are a floor, not a ceiling: your contract or your employer's scheme may give more, and where the employer runs a retirement or savings scheme worth less than the gratuity, the employer must pay the difference. Qatar has no bands that raise the rate after five years the way Saudi Arabia and the UAE do: the rate is the same in year two as in year twenty, and fractions of a year after the first are paid pro rata.
Article 54 says nothing about why the relationship ended, so resigning does not reduce the gratuity in Qatar. Many websites claim a one-third / two-thirds ladder; that ladder comes from the Saudi Labor Law and has no basis in Qatari law. The gratuity is forfeited only on dismissal for one of the grounds in Article 61. For the daily wage this calculator divides the basic salary by 30 and multiplies by 21 days, the common practice, although Article 54 itself does not state a divisor.
- Daily wage: monthly basic salary ÷ 30
- Each year of service: 21 days × the daily wage, with no band raising the rate after 5 years
- Minimum one year of continuous service; fractions of a year after that are paid pro rata
- No reduction on resignation; the gratuity is forfeited only on dismissal under Article 61
The same calculation in other Gulf countries
| Country | Wage basis | Rate | On resignation | |
|---|---|---|---|---|
 Saudi ArabiaSaudi Labor Law, Article 84: end-of-service award | Basic plus fixed allowances | half a month's wage for the first 5 years, then a month's wage | Reduced by length of service | End-of-service gratuity, Saudi Arabia |
 UAEUAE Federal Decree-Law No. 33 of 2021, Article 51: end-of-service benefits | Basic wage only | 21 days of wage for the first 5 years, then 30 days of wage, capped at 24 months of wage, from 1 year of service | No reduction | End-of-service gratuity, UAE |
 QatarQatar Labour Law No. 14 of 2004, Article 54: end-of-service gratuity | Basic wage only | 21 days of wage for every year, from 1 year of service | No reduction | This page |
 KuwaitKuwait Labour Law No. 6 of 2010, Article 51: end-of-service indemnity | Basic plus fixed allowances | half a month's wage for the first 5 years, then a month's wage, capped at 18 months of wage | Reduced by length of service | End-of-service indemnity, Kuwait |
 OmanOman Labour Law, Article 61: end-of-service gratuity | Basic wage only | a month's wage for every year, the rule in force now | No reduction | End-of-service gratuity, Oman |
 BahrainBahrain Labour Law, Article 116: leaving indemnity | Basic wage only | half a month's wage for the first 3 years, then a month's wage | No reduction | Leaving indemnity, Bahrain |
Questions people in your position ask
Do allowances count towards the Qatar end-of-service gratuity?
No. Article 54 calculates the gratuity on the last basic wage, so housing, transport and other allowances are left out. This differs from Kuwait, which uses the comprehensive wage, and from Saudi Arabia, which uses the actual wage including fixed allowances.
I resigned. Is my Qatar gratuity reduced?
No. Article 54 does not mention the reason the relationship ended, so the gratuity is the same whether the employer terminated the contract or you resigned. The one-third / two-thirds ladder repeated on many websites belongs to the Saudi Labor Law and has no basis in Qatari law.
Does the rate go up after five years of service?
No. Qatari law has no service bands: 21 days of wage per year applies in year two exactly as in year twenty. It is a minimum, so your contract or your employer's scheme may pay more.
When do I qualify, and how are part years counted?
The gratuity is due once you complete one year of continuous service. Anything beyond that is paid pro rata, so two and a half years earns 2.5 × 21 days of wage.
How is the daily wage worked out?
This calculator divides the monthly basic salary by 30 and multiplies by 21 days, which is the common practice. Article 54 does not state a divisor, so check your contract or payslip if your employer reaches a different figure.
When is the gratuity forfeited in Qatar?
Only on dismissal for one of the grounds listed in Article 61 of the Labour Law. In every other case the gratuity is paid for the whole period of service under Article 54.
Sources
Read against the statuteReviewed September 2026- Article 54, Qatar Labour Law No. 14 of 2004: Al Meezan legal portal
- Qatar Labour Law No. 14 of 2004, full text (PDF, English): ILO NATLEX
- Ministry of Labour: State of Qatar
Statutory articles this calculator applies
- Qatar Labour Law No. 14 of 2004, Article 54: end-of-service gratuity
- Qatar Labour Law, Article 61: dismissal without gratuity
- Qatar Labour Law, Article 51: leaving employment with rights preserved
Qatar Labour Law: Law No. 14 of 2004, as amended (notably by Decree-Law No. 18 of 2020 and Law No. 13 of 2017)