1. Administering Payroll for Qatar
  2. Gratuity Calculation for Qatar

Gratuity Calculation for Qatar

Employees working in Qatar are entitled to an additional payment on termination called Gratuity.

Gratuity calculations are triggered only for persons who aren't registered for social insurance. The gratuity amount to be paid is driven by Qatar labor laws. If you aren't following the Qatar labor laws, you can define your own formula for gratuity processing. The following options are available:
  • You can define your own formula and create a setup according to the values to be returned to the formula run results. In such a scenario, you may not need to use the localization solution for gratuity processing.
  • You can define your own reference formula gratuity processing, which substitutes the gratuity formula defined at the legislative level. If a user-defined formula exists, then the seeded formula executes it.
The localized solution for gratuity processing uses the following rules:
  • The duration of service determines the number of days of gratuity payment to which the payee is entitled per year of service. These days are retrieved from the legislative repository for calculation information. The duration of service can be reduced by unpaid or unauthorized absences. This is obtained by creating elements for Unpaid Leave classification and attaching this element to the absence type. If an absence with this newly created absence type is recorded, the Unpaid Leave element’s days input value will feed the Leave Without Pay balance. In the Gratuity formula, the Leave Without pay balance is used to get the unpaid absences.
  • The base salary for gratuity payment is calculated through the salary formula selected at the legal employer level.
  • When a person is terminated the termination type and eligibility for gratuity is checked:
    • If the reason for termination is dismissal, then the gratuity isn't paid.
    • If the reason for termination is other than dismissal, the full gratuity amount the person is eligible for will be paid.
    • If the employee's does not meet any minimum service criteria, no gratuity will be paid.