In Qatar, the end of service benefits, also known as gratuity or severance pay, is a significant aspect of employment contracts governed by the Qatar Labour Law. This provision ensures that employees receive compensation upon the termination of their employment, either due to resignation or termination by the employer, based on their years of service.
End of Service Benefit Calculator
There are 3 variety of gratuity facilities:
1. Below of 5 years
2. Between 5 to 10 years
3. Higher than ten years
Here is how to calculate your gratuity according to your Basic Salary:
If your service period is less than 5 years, then you will get 3 weeks of your salary as a gratuity.
Here is a simple formula: Basic Salary/30 (one month) X 21 days (three weeks) x Year
For example: suppose you are working in a company for 2 years and your salary is 2,000 Qatari Riyals (QAR) then:
QAR 2,000÷30 = QAR 66.66 (One day salary)
QAR 66.66 x 21 = QAR 1,400 (21 Days Salary)
QAR 1400 x 2 = QAR 2,800 (Your Total 2 Years of Bonus)
If your service period is between 5 to 10 years, then you will get 4 weeks of your salary as a gratuity.
This is also the same method as the method mentioned above, let's see an example here too.
Assume that your salary is QAR 2,000 and your total service period is 7 years.
Calculating formula: Basic Salary / 30 (one month) x 28 (4 Weeks) x Years
QAR 2,000 ÷ 300 = QAR 66.66 (Your One day salary)
QAR 66.66 x 28 Day = QAR 1,866.48 (Your 28 days salary)
QAR 1,866.48 x 7 years = QAR 13,065.36 (Your Total 7 years of gratuity)
If your service period is more than 10 years, then you will get 5 weeks of your salary as a gratuity.
Apply the same formula as above mentioned; all you need to do is multiply by 5 weeks instead of 5 weeks.
Formula: Basic Salary/30 (One month) x 35 (Seven weeks) x Total Service Years
Let your salary be QR 2,000 Riyal, and you have worked in a company for 12 years. How much gratuity will you get?
QAR 2000÷30 = QAR 66.66 (One months of salary)
QAR 66.66 x 35 = QAR 2333.1 (Your one years of gratuity)
QAR 2333.1 x 12 years = QAR 27997.2 (Your total gratuity)
For employees who have worked up to five years, the end of service benefit typically amounts to three weeks' salary for every year of service. This means that if an employee has worked for four years, they would be entitled to receive three weeks' worth of their salary as gratuity. If they have worked for five years or more, the calculation changes slightly.
Once an employee completes five years of service with an employer, the end of service benefit is then calculated based on one month's salary for each year of service beyond the initial five years.
It's important to note that the calculation of end of service benefits may vary depending on the specific terms of the employment contract, company policies, and the Qatar Labour Law in effect at the time of termination. Employees are advised to review their employment contracts and seek guidance from relevant authorities or legal experts to understand their entitlements accurately.
