Are you planning a job change or considering moving back to your home country in the near future? While ending your employment do you know if you are eligible for end of service gratuity in Qatar?
What is the end of service gratuity?
The gratuity scheme was introduced by the Qatar Government years ago to make certain that when an employee without pension benefits is terminated from a job, he/ she receives a payment that covers their expenses till they get another job. Employees should have a definite understanding on Qatar labour law gratuity calculation 2022, to get the complete benefits offered by the scheme.
Qatar Labour law stipulates that an employer should pay end-of-service gratuity to an employee who has completed one year or more in service. The gratuity amount should be agreed upon by mutual consent of both parties. The law also states that it should not be less than a three-week wage for every year of employment. Qatarloving.com offers you an insight on the end of service gratuity calculator in Qatar. Just read on...
The employee must fulfill certain conditions that are set out in the Qatari Labour Law to avail gratuity payment in Qatar.
Who qualifies for end of service gratuity?
If you've completed at least one year of continuous employment, you're entitled for gratuity from your current employer upon the end of your service due to resignation or termination. The contract should not be terminated due to any violations as stated in Article 61 of the Labour Law.
The end-of-service gratuity is applicable to all workers in Qatar covered by Labour Law No. (14) of 2004 and Domestic Workers Law No. (15) of 2017.
How is the End of Service Gratuity (EOSG) calculated in Qatar?
The expatriate worker's last basic salary is considered for calculation of gratuity.
|
Total service |
EOSG calculation |
|
Less than a year |
No gratuity |
|
1 - 5 years |
Three weeks (21 days) salary for each year of service |
|
5 - 10 years |
4 weeks (28 days) salary for each year of service |
|
10+ years |
5 weeks (35 Days) salary |
- Gratuity calculation is based on 21 days per year for every year of service.
- The gratuity payment may even be reduced depending on the circumstances of the termination of employment and where the employee was working.
- Additional payments to the basic salary like housing and car allowance are not considered.
- However, where an employee receives a guaranteed or regular commission payment, it may be included in the basic salary calculation.
- Employee’s salary at the time of termination is taken for calculation.
- The maximum EOSG paid cannot however exceed two years’ salary.
Gratuity formula for Qatar
How to calculate your gratuity in Qatar according to your Basic Salary?
Here is simple gratuity formula to calculate end of service gratuity in Qatar for service of 1 - 5 years:
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 3000 Qatari Riyal then.
QR 3000÷30 = QR 100 (One day salary)
QR 100 x 21 = QR 2100 (21 Days Salary)
QR 2100 x 2 = QR 4200 (End of service gratuity)
EOSG for employees in on shore organisations / free zones in Qatar
Reduced amount
If an employee on an unlimited term contract resigns, he/she will receive:
- 1 -3 years: one third of the full EOSG
- 3 - 5 years: two thirds of the full EOSG
- More than five years of service, on a limited or unlimited term contract: full gratuity with no reduction as such
No ESG
Employees will not be eligible to an EOSG where their employment terminates in the following circumstances:
- The employment relationship ends before the employee completes 12 months service.
- The employee was dismissed from service for a violation of Article 88 of the UAE Labour Law or for one of the reasons stated in Article 120 of the Labour Law.
- The employee on a limited term contract of not less than five years continuous service resigns before he/she completes the defined period.
- The employee resigns without notice when employed under an unlimited term contract for causes other than those set out in Article 121 of the Labour Law.
Legal matters
If an employee considers he/she has not received his full entitled EOSG payment, then the matter can be referred to the Ministry of Labour.
Gratuity Calculation online
Due to a lack of awareness of labour laws, the self-calculation of gratuity as per the Qatar labour laws is difficult for expat workers. In case a worker is not well educated, he might get tricked by his employer and get less gratuity or no gratuity at all. But no worries! There is an end of service calculator Qatar available online.
The Ministry of Administrative Development, Labour and Social Affairs (MADLSA) in 2017 launched a new electronic service that allows expatriate workers to calculate their end of service gratuity in Qatar. The Qatar Ministry of Interior and MOL Online portal provides an e-service through which any private sector employee can know if he/she is eligible to get gratuity or not.
This calculator provides more transparency and makes expat employees aware of their rights. The end of service calculator Qatar service helps to calculate your gratuity benefits easily. Enter the 4 basic fields and click “Calculate.” Right now, the end of service gratuity calculator in Qatar is accessible only in Arabic language.
(Translation of the fields given) 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)
Note:
- Calculation will be in accordance with Labour Law no. 14 of 2004.
- The expat needs to enter the required information as per the valid job contract signed with the employer and the term of the service.
We hope this insight on the end of service gratuity Qatar calculator from qatarloving.com has been helpful to you.