Qatar annual-leave entitlement
Qatar Labour Law No. 14 of 2004, as amended, sets paid annual leave at 3 weeks per year, treated as 21 days, for any worker with less than 5 years of service. Once a worker completes 5 years of continuous service the entitlement rises to 4 weeks, treated as 28 days, per year. The current or final partial year is always pro-rated by the months served, so 6 months into a year on the 21-day band gives 10.5 accrued days, and 6 months on the 28-day band gives 14 days. The calculator above applies this pro-rata to any service figure you enter.
How unused-leave encashment is calculated
When you leave the company, any annual leave accrued and not taken is paid out. The formula is the basic monthly salary divided by 30 to get a daily basic, multiplied by the number of unused days. Unused days are the leave accrued in the current or final year minus the days you have already taken, floored at zero. The single most important point: this encashment is calculated on basic salary only. Housing, transport and other allowances are excluded from the encashment base in Qatar.
Why Qatar encashment is basic-only
Qatar treats leave encashment as a basic-salary entitlement. Where your contract splits pay into a basic component plus housing, transport and other allowances, only the basic feeds the daily rate used for unused-leave payout. This is a country-specific rule worth stating plainly: a worker whose basic is a small slice of total pay sees a much smaller encashment than the headline salary would suggest. Check the basic figure on your contract carefully, because it drives the entire calculation.
Notice-period rules
Following the 2020 reforms, notice in Qatar depends on length of service. For service under 2 years the notice period is 1 month. For service of 2 years or more it is 2 months. The earlier 5-year tier that required a longer notice was abolished in 2020. Notice pay is settled separately from leave encashment. Leave keeps accruing during the notice period because it counts as service, so the final encashment includes any days earned across the notice run.
Worked examples
Example 1: 3 years 6 months, QAR 6,000 basic, 0 days taken. Under 5 years, the entitlement is 21 days per year, so the final 6-month partial year accrues 10.5 days. With 0 days taken, all 10.5 days are unused. Daily basic is QAR 200, so encashment is 10.5 times QAR 200, which is QAR 2,100.
Example 2: 5 years 6 months, QAR 8,000 basic, 4 days taken. After 5 years the entitlement is 28 days per year, so the final 6-month partial year accrues 14 days. With 4 days taken, 10 days remain unused. Daily basic is QAR 266.67, so encashment is 10 times QAR 266.67, which is QAR 2,667.
| Service into year | Accrued (under 5 yrs, 21 days) | Accrued (5+ yrs, 28 days) |
|---|---|---|
| 3 months | 5.25 | 7 |
| 6 months | 10.5 | 14 |
| 9 months | 15.75 | 21 |
| 12 months | 21 | 28 |
The scenarios below show how the inputs you enter flow through to a final encashment. Each uses the basic-salary base and the 30-day divisor that Qatar applies, with the 21-day annual band for service under 5 years and the 28-day band once 5 years is complete. Adjust the basic figure and days already taken to match your own contract.
| Scenario (service / basic / days taken) | Unused days | Encashment |
|---|---|---|
| 3y 6m / QAR 6,000 basic / 0 | 10.5 | QAR 2,100 |
| 5y 6m / QAR 8,000 basic / 4 | 10 | QAR 2,667 |
| 2y 9m / QAR 7,000 basic / 5 | approx 10.75 | approx QAR 2,508 |
How Qatar compares across the GCC
Leave entitlement looks broadly similar across the Gulf, but the pay base used for encashment differs from country to country, and that is what changes the final figure. Qatar pays on basic salary only, the same approach the UAE takes. Saudi Arabia pays on the full wage. Bahrain uses basic plus the social allowance, Oman uses gross salary, and Kuwait uses basic plus regular allowances over a 26-day divisor rather than the 30-day divisor seen in Qatar. So the same headline salary can produce a very different payout depending on where you work. If you have moved between the Gulf states, the UAE leave salary calculator lets you compare directly, and the GCC paperwork cost and processing-time index sets out the wider cost differences.
Common mistakes and edge cases
The most common mistake is calculating encashment on gross pay rather than the basic salary, which inflates the figure because housing, transport and other allowances do not feed the Qatar daily rate. A second error is missing the switch from 3 weeks (21 days) to 4 weeks (28 days) per year that takes effect once you complete 5 years of continuous service. Remember too that leave keeps accruing through the notice period, so the unused balance on your last working day is higher than the balance on the day you resign. Always reconcile the leave ledger your employer holds with your own records, and raise any disputed figure with ADLSA before you accept the settlement. For the related residency and exit paperwork, see the QID renewal guide, the GCC overstay fines compared breakdown, and the family sponsorship salary thresholds across the region.
Related calculators
What to do next
Cross-check the leave balance recorded by HR against your own count before you sign anything. Keep your contract, payslips for the final months and your leave records ready, as those are the documents ADLSA will ask for in a dispute. If a figure looks off, confirm it against your contract or raise it with ADLSA before accepting the final settlement. For the full picture of work permits, contract types and dispute routes, see the work permit guide and the Qatar country guide.