End-of-service gratuity is one of the most commonly misunderstood entitlements under Qatar’s Labor Law (Law No. 14 of 2004). Every employee who completes one or more years of continuous service is entitled to a gratuity payment upon termination — regardless of whether they resign or are dismissed. The standard calculation is three weeks’ basic salary for each year of service. However, the total gratuity cannot exceed the employee’s basic salary for two years. Probationary periods, unpaid leave, and certain termination circumstances can affect the final figure. Employers who fail to pay gratuity on time face penalties under the Wage Protection System. If you are an employee unsure of your entitlement, or an employer building a compliant HR framework, our employment team can walk you through the exact calculation and any deductions that may lawfully apply.
