Qatar's End of Service Benefit (EOSB) — commonly called gratuity — is one of the most valuable financial benefits for expat workers. After years of service, your EOSB can amount to several months' worth of salary. Understanding how it's calculated, when you're eligible, and how the 2024 insurance scheme changes things is essential before planning your exit from Qatar.
Qatar EOSB Formula
EOSB = (Basic Salary ÷ 30) × 21 × Years of Service
This gives you 3 weeks of basic salary per year of service. Only basic salary is used — housing and transport allowances are excluded. For partial years, the calculation is prorated daily.
EOSB Example Calculation
Basic salary: QAR 6,000/month, Years of service: 5 years
EOSB = (6,000 ÷ 30) × 21 × 5 = QAR 200 × 21 × 5 = QAR 21,000 ≈ ₹4,81,200
Resignation vs Termination — Who Gets What?
The 2020 amendment to Qatar Labour Law removed the earlier discrimination against resigned employees. Now, both resigned and terminated employees receive the same full EOSB after completing at least 1 year of service. Previously, resigned employees got reduced amounts for the first few years.
New EOSB Insurance Scheme (2024)
Qatar launched an End of Service Benefits Insurance scheme in 2024, requiring employers to contribute monthly to an insurance fund (managed by QIC and other insurers). This protects workers even if employers face financial difficulties. Key points:
- Employers pay monthly premiums to the fund
- Workers receive EOSB from the fund directly upon exit
- Protects against employer insolvency
- Covers all private sector workers
Use our Qatar Gratuity Calculator to calculate your exact EOSB based on your basic salary and years of service. Results shown in QAR, INR, and USD.