How to Calculate Gratuity for Partial Years

Every employee in Qatar is entitled for end-of-service gratuity for their years of service. The employer must pay gratuity to the employee for all completed years and partial years. So, it is necessary to learn how to calculate gratuity for partial years to find out gratuity amount payable to the employee.

Eligibility Criteria for Gratuity

According to Qatar Labour Law, any employee who has completed a minimum of one year of continuous service with one employer, is eligible to receive gratuity at the end of service.

The employer is required to calculate gratuity and pay it to the employee on termination/end of employment contract.

How Much Gratuity Can an Employee Get?

An employee can get a minimum of 21 days’ basic salary as gratuity for each completed year of service with their employer. The employer can pay more than 21 days basic salary as gratuity if they have a policy but the gratuity amount must not be less than 21 days basic salary per year.

For calculation of gratuity, the employer must consider the last basic salary of the employee. There is an official formula for gratuity calculation in Qatar, here are the details_

End-of-Service Gratuity = Last Basic Salary X 21/30 Days X Number of Completed Years of Service

Can an Employee Get Gratuity for Partial Years?

Yes, the employee can get gratuity for partial years if they fulfill the primary eligibility condition i.e. the employee has completed minimum one year of service under one employer/company in Qatar.

Example 1: If the employee has worked under one employer for 1 year & 4 months, they are eligible to get gratuity as the entire service period is longer than one year. The employee will get gratuity for one whole year and the partial year i.e. 4 months.

Example 2: If the employee has worked under one employer for 11 months and 10 months under another employer, they are Not eligible to get gratuity. Because the employee has not completed minimum one year of service under any one employer, therefore the employee is Not entitled for end-of-service gratuity benefit.

How to Calculate Gratuity for Partial Years

To calculate gratuity for whole completed years, the employer has a clear number but what about partial years? According to Qatar Labour Law, the employee is entitled to receive gratuity for all completed years of service including whole years and partial years.

For the partial year, the employer should pay gratuity proportionately for the period served by the employee. It means that the employer should pay gratuity to the employee for partial years for the number of days/months served out of total days/months in a year.

Let us understand how to calculate gratuity with different service periods served by the employee.

Gratuity for 3 and a Half Year(s)

An employee has worked under one employer for 3 years and 6 months. Here the employer must pay gratuity to the employee for 3 whole years and one partial year. The partial year service period is 6 months out of 12 months i.e. 6/12 = 0.5 years. So, the employer needs to calculate gratuity for 3.5 years and pay it to the employee.

Gratuity for 2 and a One-Forth Year(s)

An employee has worked under one employer for 2 years and 3 months. Here the employer must pay gratuity to the employee for 2 whole years and 1 partial year. The partial year service period is 3 months out of 12 months i.e. 3/12 = 0.25 years. Therefore the employer must calculate gratuity for 2.25 years and pay it to the employee.

Gratuity for 4 Years and 7 Months

An employee has worked under one employer for 4 years and 7 months. Here the employer has to pay gratuity to the employee for 4 whole years and 1 partial year. The partial year service period is 7 months out of 12 months i.e. 7/12 = 0.58 years. Hence, the employer must calculate gratuity for 4.58 years and pay it to the employee.

Illustration:

Mr Adil started working at Doha, Qatar on March 1, 2021 under Khidmat Ltd and left the work on September 1, 2024. Mr Adil’s last basic salary was 3000 Riyals, calculate end-of-service gratuity for Mr Adil as per Qatar Labour Law.

Calculate Gratuity for Partial Years with Gratuity Formula

Mr Adil has worked from March 1, 2021 to September 1, 2024. His service period is 3 years and 6 months. So, the employer (Khidmat Ltd) must pay end-of-service gratuity to the employee (Adil) for 3 whole years and one partial year i.e. 6/12 months = 0.5 year.

Mr Adil’s last basic salary is 3000 Riyals. So, let us calculate gratuity using the gratuity calculation formula.

End-of-Service Gratuity = Last Basic Salary x 21 Days/30 Days x Number of Completed Years of Service

= 3000 Riyals x 21/30 Days x 3.5 Years

= 7350 Riyals

Calculate Gratuity for Partial Years with Online Gratuity Calculator

The manual calculation of gratuity takes time and efforts. To save your valuable time, you can use the Online Qatar Gratuity Calculator Tool to calculate end-of-service gratuity for Mr Adil. Kindly follow the steps given here learn how to find gratuity amount using online gratuity calculator.

1. Open a web browser and go to Qatar Gratuity Calculator website @gratuitycalculator.qa.
2. Scroll down to Gratuity Calculator Qatar.
3. Enter last basic salary of the employee (Mr Adil).
4. Provide exact dates for First Working Day and Last Working Day.
5. Click on Calculate Gratuity button to proceed.
6. The gratuity amount payable to Mr Adil will show up on screen.

In this way, you can use online gratuity calculator to calculate gratuity of any employee who has worked in Qatar. This free online tool saves you from manual calculation and helps you determine the exact gratuity amount instantly.

Wrapping Up:

End-of-Service Gratuity is every employee’s right if they have worked for one year or longer with one employer in Qatar. Above I have shared two methods on how to calculate gratuity for partial years using gratuity calculation formula and online calculator tool.

In case you have any query or doubt about Qatar gratuity calculation for partial years, you can ask it in the comment section.

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