How to Calculate End-of-service Gratuity in Qatar and When is it Payable?

How to Calculate End-of-service Gratuity in Qatar and When is it Payable? By Darlene Regis - October 04, 2021
How to Calculate End of service Gratuity in Qatar and When is it Payable

Have you been working in a company in Qatar for more than a year now and planning to change your job? If yes, you are entitled to an end-of-service benefit.

What does it mean?

End of Service (EOS) or gratuity is part of the Qatar Labour Law that stipulates a sum of money to be paid to an outgoing employee.

The terms will be included in the employee's contracts. These contracts are normally terminated once their duration has passed or prematurely under several conditions i.e. employee termination or resignation.

You may also approach a staffing recruitment Doha to manage your job application while you are trying to settle your end of service benefits.

When is it payable?

An EOS should be paid upon the termination of the employment. Recalculation of the EOS should be undertaken and final termination payment should be made to ensure that the employees have received their full payment.

Before changing jobs in Qatar and finalizing your application with a new employer, you may calculate your EOS by yourself either online or manually through the instructions below:

How to calculate EOS fast and easy?

Calculating your end of service benefits is fast and easy through the electronic services of the Ministry of Administrative Development, Labor and Social Affairs (MADLSA).

All you have to do is enter the following 4 basic information and Click "Calculate." (Right now the service is accessible only in Arabic language).

Translation of the fields in the form: 

Field 1 : Date of Joining

Field 2 : Last Working Date 

Field 3 : Basic Monthly Salary 

Field 4 : Gratuity Days accrued every year (eg: 21 days/year)

MADLSA provides this online service that allows applicants to calculate the end of service payment. It is in Arabic version, however, you can still use the electronic service to calculate your gratuity according to the Online Instructions provided above.

The ministry has given a form to this purpose on its website to be filled by the worker with data about date of beginning service, date of ending service, basic salary, number of payable days of the year which isn't under three-weeks according to the law.

The expat needs to enter the required information as per the valid job contract signed with the employer and the term of the service.

Additional Information

Calculation will be in accordance with regulations of Labor Law no. 14 of 2004.

Here are further information about the end-of-service benefits in Qatar according to the workers' rights booklets of National Human Rights Committee. 

How do you calculate EOS manually?

The end of service bonus shall be awarded if the period of work is for a full year or more, and is due for the whole number of years of service, and this remuneration shall be determined by the parties, provided that it is not less than three weeks' wages for each year of service.

Gratuity could be a total of cash paid to a worker at the end of a period of employment. This facility is additionally obtainable in Qatar. It is calculated according to the lowest wage of workers which incorporates their basic earnings.

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)

What to do if the gratuity value you received is incorrect?

If you do not accept the opinion of the employer in determining the number of years of service, you can file a lawsuit on the determination of the number of years of service payable for the bonus.

Is it permissible for the employer to fire you and terminate your contract without  notice and without granting you end of service benefits?

He may do so in the following cases:

- impersonating another person or nationality other than your nationality, or submitting false papers, documents and certificates, or if you commit an error resulting in a serious loss of material to the employer.

- If you have violated more than once instructions for the safety of workers and establishment despite warning you in writing, provided that the instructions you must follow are written and displayed in a visible place.

- Violating your labor contract or violation of the labor law more than once despite a written warning to you.

- If found during work hours under the effect of drugs or alcohol.

- Assault on your employer, manager or one of your superiors during work.

- Repeating your assault on your colleagues even though you were warned in writing.

- Absence from work without legitimate reason more than seven consecutive days or fifteen days intermittently during the year.

- The conviction with a final judgment in a crime of honor or honesty.

When is it permissible for you to terminate the employment contract while retaining your EOS?

You may terminate your employment contract whether fixed or indefinite while retaining your right to end of service benefits in the following cases:

- If the employer breaches his obligations under the contract, or violates the labor law.

- If you or a member of your family has committed an attack or an act that is contrary to morality.

- If the employer committed fraud in relation to the terms of the contract.

- If there is a serious risk to your safety or health, provided that the employer is aware of the existence of this danger but did not work to remove it.

Are you still looking for a job? There are thousands of Qatar jobs for expats now hiring online. You can increase your chances in getting hired with the help of B2C solutions. 

May you end the labor contract before the end of its duration while safeguarding your full right to the end of service bonus?

Yes, you may, in any of the following cases:

- If an employer has not met hisIher obligations specified in the provisions of this law or in the labor contract.

- If an employer, or a person mandated by him/her, has cheated at the time of concluding a contract with a worker, with respect to the terms of employment.

- If an employer or a member of his/her family aggresses a worker, which harms the worker physically or his/her life.

- In the event of a serious danger which threatens a worker’s safety or health, provided that an employer was cognizant of the danger, and had not sought to remove it.

Do you have the right to receive end of service benefits as a domestic worker?

- An employer shall be responsible for paying the end-of-service bonus to a domestic worker who spent at least one year in ser- vice as of 22 August 2017, i.e. the date on which Law No. 15 of 2017 on domestic workers entered in force.

- This bonus shall be determined in agreement between both parties provided it shall be at least a three week wage for each year spent in service. A domestic worker shall be entitled to fractions of the year multiplied by the period spent in service.

- An employer shall be entitled to deduct from the bonus the sums which are owed to him/her by the worker.

- The employer shall be punished with a fine not exceeding (5,000) five thousand riyals if he violates the above-mentioned items.

Article 72

According to Al Meezan, Qatar's Legal Portal, the Remuneration (money paid for work or a service) of the Worker for the annual or sick leave and the end service gratuity shall be calculated on the basis of his Basic Wage on the due date. If the Worker works on piecework basis, the calculation shall be based on the Worker's average Remuneration for the three months preceding the maturity date.

By Darlene Regis - October 04, 2021

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