Is there any personal income tax on salaries in Qatar?

No. The State of Qatar levies 0% personal income tax on employment wages, salaries, and allowances paid to both Qatari citizens and expatriate resident workers.

How is the End of Service Gratuity calculated in Qatar?

Under Article 54 of Qatar Labour Law No. 14 of 2004, employees who complete at least one continuous year of service are entitled to a minimum gratuity of 3 weeks (21 days) of basic salary for every year of completed service.

Are housing and transport allowances included in the gratuity calculation?

No. In accordance with Qatari labour court jurisprudence, statutory gratuity is calculated strictly on the employee's last basic salary, excluding housing, transport, or mobile allowances.

Qatar End of Service Gratuity (EOSG) Calculator 2026

Qatar Expat Compensation & End of Service Gratuity (EOSG) 2026: Labour Law Guide

Guide to expatriate salaries in Qatar for 2026: 0% personal income tax, Wage Protection System (WPS), housing allowances, and calculating the statutory End of Service Gratuity (EOSG).

Simulequa Qatar Editorial Desk

مؤلف موثق

Gulf Labour Law & Expatriate Compensation

تاريخ النشر٢١ سبتمبر ٢٠٢٦

وقت القراءة8 min

Expatriate Compensation and End of Service Benefits in Qatar (2026)

Qatar continues to be one of the most attractive employment hubs in the Arabian Gulf, combining a 0% personal income tax regime with comprehensive statutory worker protections under the Ministry of Labour's Wage Protection System (WPS).

1. The Anatomy of a Qatari Employment Contract

Expatriate packages in Doha typically segment remuneration into two tiers:

Basic Salary: The foundational contractual wage upon which all statutory benefits (overtime, leave pay, and End of Service Gratuity) are calculated.
Cash Allowances: Housing allowance, transportation allowance, and flight allowances (which boost monthly liquidity but do not inflate severance obligations).
Tax Withholding: 0%. 100% of your gross remuneration is credited directly into your local Qatari bank account via WPS.

2. Verified Numerical Scenario: 6 Years of Service at QAR 28,000 Basic

Consider a senior civil engineer or financial consultant completing 6 full years of service with an employer in Lusail, whose final monthly pay comprises a QAR 28,000 basic salary (plus QAR 12,000 in housing allowance = QAR 40,000 total package):

| Compensation Element | Monthly / Base Amount | Calculation Formula & Rules | |---|---|---| | Monthly Basic Salary | QAR 28,000.00 | Basis for Article 54 EOSG | | Monthly Allowances | QAR 12,000.00 | Excluded from severance computation | | Total Monthly Net Deposited | QAR 40,000.00 | 0% tax deducted under Qatari law | | Daily Basic Salary Benchmark | QAR 933.33 | QAR 28,000 / 30 calendar days | | Statutory Gratuity per Year | 21 days basic pay | 21 days × QAR 933.33 = QAR 19,600.00 / year | | Number of Completed Years | 6 full years | Continuous employment | | Total Statutory EOSG Lump Sum | QAR 117,600.00 | 6 years × QAR 19,600.00 |

Crucial Financial Takeaway:

Upon conclusion of their contract, this expatriate receives a tax-free severance payout of QAR 117,600.00 (approximately $32,300 USD) in addition to their final monthly salary and accrued leave balance!

3. Regulatory Sources & Verification

Labour Legislation: State of Qatar Labour Law No. 14 of 2004 (Articles 54 to 57 on End of Service Indemnity). Verified on 21/09/2026.
Payment Deadline: Employers must settle all final entitlements within the timeframe stipulated by Ministry of Labour WPS exit protocols.

Simulate your Qatar severance entitlements:

Qatar End of Service Gratuity Calculator