What is Gratuity?
Gratuity is a lump sum monetary payment that an employee gets at the end of his tenure, provided that the service period is more than one year. Gratuity payment is a liability to the employer as his service moves on.
How Does An Employee Become Eligible for Gratuity Payment?
An employee becomes eligible for gratuity payment at the end of his service. When he resigns or gets a termination letter, he also becomes eligible for Gratuity pay. According to article number 54, the Employee shall be entitled to gratuity for a fraction of the year worked, provided he has done more than one year of continuous service.
How Do You Calculate the End of Service Gratuity?
You calculate the end of service Gratuity by using online tools by the ministry of administrative development, labor, and social affairs. It provides an online service that allows the employees or the applicants to calculate the end-of-service gratuity on its official website. However, you find this page only in the Arabic language.
You can easily calculate the end of service gratuity on the ministry website by entering the joining date, basic monthly salary, and last working date number of gratuity days done for each year.
Follow These Steps to Calculate Your Gratuity Amount
- Click on the website link to open the calculation page. Then you will see fields to fill out in the Arabic language.
- Enter your date of joining in the first field, according to your contract.
- Enter your last working date in the second field.
- Enter your basic monthly salary in the third field, as per your contract.
- Now enter the graduated days a card for each year. Here you have to refer to your contract.
- Lastly, click on the bottom button, and then you will see the results.
- This service ensures more transparency to make foreign implies aware of their legal rights.
- In Qatar, the gratuity is calculated under the labor law of Qatar, number 14 of 2004.
Read Also: What Are The Highest-Paying Jobs In Qatar?
Some Basic Rules and Laws Related to End of Service Gratuity
- The basic amount is the last drawn basic wage used to calculate gratuity.
- If the employment type changes, it does not affect the amount gratuity paid.
- The unpaid leave is not included in deciding the service. And it is reduced by the number of days served as unpaid leave.
- If a worker dies, the employer should deposit his unpaid wages and gratuity within 15 days from the date of death.
- If an employer gives a pension plan to the employees, then the employees are not eligible to graduate at the end of service.
- The employees can get a clear insight into graduate calculation in Qatar to get the full benefits offered by the plan.
- The number of days used to calculate gratuity
- The gratuity calculation is based on 21 days for every year of service.
- The last basic salary is the base for calculating the gratuity amount.
- The employer can deduct your amount to be paid by the worker from the gratuity.
- The Employee and employer agree upon the gratuity that it is not less than a three-week pay for every year of employment.
- Further, the end of service gratuity is calculated per the contract and the number of years of service.
- The Employee is eligible for a minimum of three weeks' basic salary, for each year of employment, as the end of service gratuity.
- If your employer refuses to pay your graduate without a certain reason, you can file a complaint at the labor court.
Payroll Process in Qatar
The payroll process is a bit complex, and hence, outsourcing your company's payroll process is always advised. Outsourcing payroll will ensure the help of a team of trained payroll experts. And it frees up the company's time, helping them focus on other projects that add value to their business.
One should be sharp enough when choosing their payroll provider, as payroll data is highly acute. One should also opt for a provider that can confirm high levels of data security. Trusted providers help solve your payroll intricacies through customized plans as a leading payroll outsourcing company. The oversight team spends the required hours on every project, providing the clients get refined consulting services to take your business forward.
Can The Employer Withhold Gratuity Payment?
- As per Article 61, the employer may discharge the Employee without end-of-service gratuity in any of the following examples: If the worker takes a false identity or submits false diplomae or documents.
- If the worker commits an act that causes financial loss to the employer
- Assume the worker breaks the written rules of the employer more than once concerning the safety of the workers and the institution despite his being notified in writing of the breach. In that case, these instructions shall be written and posted up in a prominent place.
- If the Employee fails more than once to carry out his basic duties under the service contract or this law despite being notified in writing
- If the worker informs the secrets of the organization where he is employed
- If the worker is found during working hours in a state of drunkenness or under the power of a drug
- If the worker commits an attack on the person of the employer, the manager, or one of his bosses in work during work or by reason thereof
- If the worker repeats his attack on his coworkers at work despite his being warned in writing
- If the Employee is absent from the office or works without fair cause for more than seven straight days or fifteen days in one year
- If the worker has been punished for a crime involving sin or deceit
CONCLUSION
The above information describes the explanation of Qatari Labor Law. We also refer here the words of that Law:
End of Service Gratuity According to Labor Law
According to Qatar Labor Law (Article 54 of Law No. 14 of 2004):
“In addition to any amounts due to the worker at separation from service, the employer shall pay the end of service gratuity to the worker who has completed employment of one year or more. Such gratuity shall be specified by the agreement of the two parties, provided that it is not less than the Wage of three weeks for every year of his service. The Worker shall be entitled to gratuity for the fractions of the year in proportion to the duration he spent in service.”
According to Article 15 of the Law No. (15) Of 2017 on Domestic Workers:
“In addition to any amounts due to the Worker at the end of their term of service, the employer shall pay an end-of-service gratuity to the Worker who has been employed for one full year or more as of the effective date of this Law. The gratuity shall be determined and agreed by both parties, provided it is not less than a three-week-pay for each year of service. The Worker is further entitled to get a gratuity for fractions of the year based on the entire duration of service proportionately. The employer shall be entitled to deduct the amounts the Worker owes to the Employee from the gratuity.”
Read More: How Do You Get A Qatar Work Visa?