gratuaity calculation
By mohammad grc •
Gratuity
A worker is entitled to an end of service gratuity, upon expiry of his service. The worker should have completed atleast five years of employment. The gratuity will be agreed upon by the two parties, provided it is not less than three-week wages for each year of employment (and if one exceeds 5 years of service, gratuity could even be calculate at 30 days per year). The last drawn basic wage will be the base for calculation of gratuity.
can any one confirm gratuity calculation like this? please let me know and give me solid reference or law article no. bcoz my admin ask me.i dont have solid reference.
One clarification required in this regard is if suppose a person leaves 2 and a half years from a company. The gratuity is calculated for 2 years or 2.5 years??
at the end if you got a release just be thankful and don't ask for anything else ;)
Qatar labour Law - 2004, Article 54 says regarding the gratuity for employees completed the employment in a company more than one year. Gratuity not less than three weeks salary for every year of service. This gratuity shall be agreed upon by the two parties. Gratuity shall be calculated with the last basic salary. The employer is entitled to deduct from the service gratuity the amount due to him by the worker.
And yes, the calculation is on your basic salary.
It differs company to company...Some count it 21 days each year no matter if it exceed to 10 years or more and some companies calculate like it;
first 5 years=21 day, next 5 years=28 days, next 10 years 35 days and further 40 days per year.
The second option I read in Gulf Times from labor dept. many years back.
i believe its one month for each year you worked with your company and the calculation will be upon the basic salary not benefits are entitled in it.
This is not as per Labour Law. The gratuity is not less than 3 weeks per year of service after completing ONE year of service.