Do allowances count towards the award in Qatar?

Wages in Qatar are assessed on the "basic wage only, excluding allowances" basis. See "How is the award calculated?" above for details.

When and how is the award paid?

Gratuity is due at the date of termination, plus payment in lieu of untaken annual leave (Articles 54, 81). The employer may deduct amounts the worker owes him.

Are fractions of a year counted?

Yes — fractions of a year are pro-rated to the actual period of service.

End-of-Service Benefits Guide: Qatar

This guide explains the key end-of-service rules in Qatar in plain language, based on Labour Law No. 14 of 2004. Every figure comes from the official texts listed under Sources below, and the worked example is computed by our own calculator.

Scope: private-sector employees covered by the labour law. Excludes domestic workers, free-zone employees under separate regimes, and workers covered by national pension/social-insurance systems.

Who qualifies?

On termination or contract expiry: minimum: 1 year of service.
On resignation: minimum: 1 year of service.

Three weeks is the statutory minimum; your contract may grant more — always check your contract.

How is the award calculated?

The award is based on the "basic wage only, excluding allowances", with fractions of a year pro-rated to actual service. The formula:

three weeks for each year of service

Worked example

An employee on a monthly wage of 10,000 QAR with 6 years of service (termination case):

6 years × three weeks of the wage = 42,000 QAR
Total: 42,000 QAR

Resignation vs termination

The law does not distinguish between resignation and termination when calculating the award — the result is the same either way.

Cap on the award

no statutory cap on the total award

Notice period and annual leave

Notice (Indefinite contracts, monthly/annual-paid workers, service ≤5 years (Art 49)): employee 30 days / employer 30 days.
Notice (Indefinite contracts, monthly/annual-paid workers, service >5 years (Art 49)): employee 60 days / employer 60 days.
Annual leave: 21 days — 3 weeks after 1 year of continuous service; 4 weeks after 5 years; pay in lieu of untaken leave on termination (Arts 79–81).

Common mistakes

Expecting the rate to rise with longer service — the law has no escalating tiers.
Assuming resignation reduces the award — there is no statutory reduction.
Confusing the statutory minimum with the potentially higher contractual amount.

Notes on the figures

We treat "three weeks" as 21/30 of the monthly wage; the law does not specify the conversion.

Official sources

Every figure in this guide comes from the following official sources:

Labour Law No. 14 of 2004 — Article 54

Official legal portal of Qatar (Al Meezan). Minimum: three weeks’ remuneration per year, ≥1 year service, pro-rata fractions, last basic wage basis.
https://www.almeezan.qa
Labour Law No. 14 of 2004 — Articles 49, 79–81

Art 49: indefinite-contract notice tiers. Art 79–81: 3 weeks’ annual leave after 1 year, 4 weeks after 5 years; pay in lieu on termination.
https://www.almeezan.qa

Frequently asked questions

Do allowances count towards the award in Qatar?: Wages in Qatar are assessed on the "basic wage only, excluding allowances" basis. See "How is the award calculated?" above for details.
Is the award lower if I resign?: No — the law does not distinguish between resignation and termination when calculating the award.
When and how is the award paid?: Gratuity is due at the date of termination, plus payment in lieu of untaken annual leave (Articles 54, 81). The employer may deduct amounts the worker owes him.
Are fractions of a year counted?: Yes — fractions of a year are pro-rated to the actual period of service.