How to Calculate Qatar Leave Encashment: A Worked Example
A simple method for turning your unused annual leave into a QAR figure, with worked examples on the basic-wage, divide-by-30 basis.
Qatar leave encashment is one of the easiest final-settlement lines to calculate by hand. This guide shows the method, then runs several examples so you can verify your figure on the Qatar Leave Encashment Calculator.
The two-step method
- Daily basic wage = monthly basic wage ÷ 30.
- Encashment = daily basic wage × number of unused leave days.
Use your basic wage (not gross), and the ÷30 divisor — the same one Qatar uses for gratuity.
Working out your unused days
First establish your entitlement rate. Under Article 79 you accrue 21 days a year with under five years of service, or 28 days a year once you complete five years. Multiply the annual rate by your service, subtract the days you already took, and you have your unused balance (subject to any carry-over limits).
Example 1 — QAR 9,000 basic, 18 unused days
| Step | Working | Result |
|---|---|---|
| Daily wage | 9,000 ÷ 30 | QAR 300 |
| Encashment | 300 × 18 | QAR 5,400 |
Example 2 — QAR 6,000 basic, 21 unused days
| Step | Working | Result |
|---|---|---|
| Daily wage | 6,000 ÷ 30 | QAR 200 |
| Encashment | 200 × 21 | QAR 4,200 |
Example 3 — QAR 12,000 basic, 28 unused days
| Step | Working | Result |
|---|---|---|
| Daily wage | 12,000 ÷ 30 | QAR 400 |
| Encashment | 400 × 28 | QAR 11,200 |
Payout by unused-day balance (QAR 9,000 basic)
| Unused days | Encashment |
|---|---|
| 5 | QAR 1,500 |
| 10 | QAR 3,000 |
| 15 | QAR 4,500 |
| 21 | QAR 6,300 |
| 28 | QAR 8,400 |
Common calculation slips
The two biggest errors are using gross salary instead of basic wage, and applying the wrong annual accrual rate (21 vs 28 days). If you crossed the five-year mark part-way through, some of your accrual is at 21 days and some at 28 — pro-rate accordingly. For the full rules, read the Qatar leave encashment guide, and see how it sits with your gratuity in the gratuity worked example.
Verify your number
Check your figure on the Qatar Leave Encashment Calculator, or add it to your notice pay from the notice worked example for a full settlement. The statutory rule is published on Al Meezan – Qatar Legal Portal.
Working out a mixed-rate year
If you cross the five-year mark part-way through a leave year, your accrual for that year is split: days earned before the milestone accrue at the 21-day annual rate, and days after it at the 28-day rate. When you encash, the days themselves are simply counted and valued at your daily basic wage — the split matters for how many days you accrued, not for the encashment price per day. Track the milestone date so your accrued-day count is right.
Basic wage, not gross — again
It is worth repeating because it is the most common slip: leave encashment uses your basic wage, the same base as gratuity, not your total package. If your gross is meaningfully higher than your basic, an estimate built on gross will overshoot. Pull the basic figure from your contract or payslip before you calculate.
Combining leave with the rest of your settlement
Leave encashment rarely travels alone. When you leave, it is added to your gratuity and any notice pay to form your final settlement. Running all three together — gratuity from the gratuity example, notice from the notice example, and leave here — gives you a single number to check against your employer’s statement.
Key takeaways
- Encashment = (monthly basic ÷ 30) × unused days.
- Value the days on basic wage, not gross.
- A mid-year five-year milestone splits that year’s accrual rate.
- Add leave to gratuity and notice for your full settlement.
Add leave to your full settlement
Leave encashment is one line of the money you receive when you leave a job in Qatar. To see the complete figure, pair it with your end-of-service gratuity and any pay in lieu of notice. Run the gratuity on the Qatar End-of-Service Calculator and the notice figure on the Qatar Notice Period Calculator, then add your leave payout from here. Because all three use your salary in slightly different ways — gratuity and leave on basic wage, notice on the monthly wage — keeping them separate until the final total avoids cross-contaminating the figures. Once you have a grand total, compare it line by line against your employer’s settlement statement, and query any single line that differs before accepting payment.
Frequently asked questions
What is the Qatar leave encashment formula?
Encashment = (monthly basic wage ÷ 30) × unused leave days. Use the basic wage and a divisor of 30.
How much is 18 days leave on QAR 9,000 basic?
QAR 5,400 — the daily wage is QAR 300 (9,000 ÷ 30), multiplied by 18 unused days.
Is Qatar leave encashment on basic or gross salary?
Basic wage only, using the value on the date the leave became due.
What divisor is used for Qatar leave encashment?
30 — the monthly basic wage is divided by 30 to get the daily rate, the same divisor as gratuity.
How do I work out my unused leave days in Qatar?
Multiply your annual entitlement (21 days under 5 years, 28 days at 5+ years) by your service, then subtract the days already taken.