How Salary Deductions Work in Qatar (2026)
Qatar levies no personal income tax — but your payslip isn't the whole story. Qatari nationals pay social insurance, everyone accrues a gratuity worth weeks of pay per year, and the allowance split in your contract changes both. Here's the full picture.
GRSIA — 7%, nationals only
Under Law No. 1 of 2022, Qatari (and GCC) nationals contribute 7% of their contributory wage — basic salary plus social and housing allowances (housing counted up to QAR 6,000/month) — capped at QAR 100,000/month. Expatriates pay 0% and are outside the system entirely.
End-of-service gratuity — 21 days per year, flat
Article 54 of Law No. 14 of 2004 sets the floor: not less than 3 weeks' (21 days') basic salary for every year of service — calculated on the last basic wage, allowances excluded. Three things most people get wrong:
1. The rate does not rise after 5 years — it's 21 days per year, flat.
2. Resignation doesn't reduce it — unlike Saudi Arabia and Kuwait, Qatar has no resignation scale.
3. Many contracts grant 30 days per year — check yours; the law is only the minimum.
Worked examples
Example 1 — Qatari national, QAR 25,000/month (basic 18,000 + allowances 7,000): GRSIA = 7% × 25,000 = QAR 1,750. Take-home = QAR 23,250. No income tax.
Example 2 — expat gratuity, 6 years, basic QAR 9,000, 21-day contract: (9,000 ÷ 30) × 21 × 6 = QAR 37,800. On a 30-day contract it would be QAR 54,000 — worth checking your offer letter.
Basic vs. allowances — why the split matters
Qatar gratuity is calculated on basic salary only — allowances are excluded by law. Two identical QAR 20,000 packages can produce very different gratuities: one with a QAR 14,000 basic accrues far more than one with a QAR 10,000 basic. When comparing job offers, the basic-salary figure matters more than the headline package.
Sending money home
Qatar's expat workforce remits billions annually. The QAR is pegged at 3.64 per USD, so your home-currency value moves with the dollar. Compare the total received across banks, apps and exchange houses before each transfer — check the live rate on our salary currency converter.
Common mistakes
1. Expecting a 5-year bump in gratuity. There isn't one — it's 21 days per year from year 1.
2. Counting allowances in the gratuity base. The law says basic wage only.
3. Leaving before 1 year. Under one year of service, no statutory gratuity is due at all.
Try it: Qatar salary calculator →
Qatar — frequently asked questions
Is there income tax on salary in Qatar?
No. Qatar levies no personal income tax on salaries for anyone — Qatari nationals and expatriates keep 100% of gross pay before social insurance.
How much is social insurance in Qatar?
Qatari (and GCC) nationals contribute 7% of their contributory wage (basic salary plus allowances, capped at QAR 100,000/month) to GRSIA under Law No. 1 of 2022. Expatriates pay 0%.
How is end-of-service gratuity calculated in Qatar?
A minimum of 21 days of basic salary per year of service (basic ÷ 30 × 21 × years) under Article 54 of Law No. 14 of 2004. The rate is flat — no increase after 5 years — and resignation does not reduce it. Contracts may grant more, commonly 30 days.
Can my employer pay less than 21 days' gratuity?
No. 21 days per year is the legal minimum under Article 54 — any contract term below that is unenforceable. Your contract can only improve on it, and many grant 30 days.
Do I get gratuity if I leave during probation?
Only once you've completed a full year of service. A 3–6 month probation doesn't qualify on its own — but probation time counts toward the year if you're confirmed.
Sources & verification
Figures compiled from: GRSIA · Al Meezan — Law No. 14 of 2004.
Last verified: 23 October 2026. Estimate only — not tax advice.