Aqid ERPThe minimum (article 54)
- At least three weeks' basic wage for each year of service.
- Only after the worker has completed one year of service.
- Parts of a year count in proportion.
- It is worked out on the basic wage on the day it falls due; for a worker paid by the piece, on the average of the last three months.
- Basic wage: allowances such as housing and transport are not part of it unless the contract says so.
A worked example
Six years of service and a basic monthly wage of QAR 9,000. A week's basic wage is the monthly wage × 12 ÷ 52:
| Weekly basic wage: 9,000 × 12 ÷ 52 | QAR 2,076.92 |
|---|---|
| Three weeks per year | QAR 6,230.77 |
| × 6 years | QAR 37,384.62 |
Contracts that give more
Many contracts set a month's basic wage per year or more. The contract's figure applies when it is higher than the law's minimum; read it before working out the final settlement. Where the employer runs a retirement scheme that pays the worker more, the Labour Law does not add the gratuity on top: the worker chooses between the two.
Qatari staff
Since 3 January 2023, Law No. 1 of 2022 on Social Insurance covers Qatari nationals working for a private-sector employer, which pays monthly contributions for them to the General Retirement and Social Insurance Authority. Check with the Authority how the pension and the gratuity sit together for your Qatari staff.
How Aqid ERP helps
Qatar has no VAT, so payroll and the gratuity are where the compliance work is. Aqid ERP's payroll accrues end of service every month, so the liability grows on the balance sheet as it is earned, and the final settlement draws on it.