How the formula works
Article 54 formula: (monthly basic salary ÷ 30) × contract days per year × years of service. The legal minimum is 21 days per year; the rate is flat and does not increase with longer service.
Unlike Saudi Arabia and Kuwait, Qatar has no resignation reduction: resigning pays exactly the same as contract completion.
Worked example
A basic salary of QAR 9,000, from January 2019 to January 2026 (7.01 years), at the 21-day minimum: (9,000 ÷ 30) × 21 × 7.01 = 44,134.52 QAR. On a contract granting 30 days, the same service pays 63,049.32 QAR.
Common mistakes
1. Assuming the rate rises to 30 days after 5 years. It doesn't — 21 days is the flat legal minimum; only your contract can raise it.
2. Using full pay instead of basic salary. Qatar's gratuity is calculated on basic salary, not basic plus allowances.
Minimum 1 year of continuous service is required. Termination by the employer (or contract expiry) always pays the full calculated amount.
Tax: Qatar levies no personal income tax, so your gratuity is paid in full. Gratuity applies to all private-sector employees regardless of nationality.