Qatar Leave Encashment 2026: The 21 vs 28 Day Rule
How Qatar annual leave accrues, how unused days are paid out, and the service milestone that steps your entitlement up — under Article 79 of the Labour Law.
When you leave a job in Qatar — or sometimes during employment — any annual leave you accrued but did not take must be paid out. This is called leave encashment, and it is governed by Article 79 of Labour Law No. 14 of 2004. The one detail that catches people out is that your annual entitlement steps up once you pass five years of service.
The entitlement: 21 vs 28 days
Under Article 79, your paid annual leave entitlement is:
- 3 weeks (21 days) per year while you have less than 5 years of service, and
- 4 weeks (28 days) per year once you complete 5 years of service.
So a long-serving employee accrues leave faster than a newer one. That milestone matters both for how much time off you earn and for how much unused leave is worth when it is paid out.
The wage basis
Both leave pay and leave encashment are calculated on your basic wage, as it stood on the date the leave fell due. The daily rate uses the standard ÷30 divisor — the same divisor as Qatar’s gratuity. Allowances are not part of the encashment base.
The formula
Leave encashment is straightforward: (monthly basic wage ÷ 30) × unused leave days. Work out your daily basic wage, then multiply by the number of accrued-but-untaken days.
Worked example
An employee on a QAR 9,000 basic wage with 18 unused leave days:
| Step | Working | Result |
|---|---|---|
| Daily wage | 9,000 ÷ 30 | QAR 300 |
| Encashment | 300 × 18 | QAR 5,400 |
Run your own days on the Qatar Leave Encashment Calculator.
Carry-over rules
You do not have to encash everything immediately. Qatar lets you request to carry up to half of your unused leave into the following year rather than cashing it out. Any leave that remains unused when you leave the company is settled as part of your final dues.
How it fits your final settlement
Leave encashment sits alongside your end-of-service gratuity and any notice pay. To see the full picture: read the Qatar gratuity guide for end-of-service pay, the Qatar notice period guide for pay in lieu, and combine everything from the Qatar hub.
Practical points
- Track your accrual. Know whether you are on the 21-day or 28-day rate — crossing five years changes it.
- Use the basic wage. Encashment runs on basic, not gross, so estimate accordingly.
- Keep records. Payslips and leave-balance statements are your evidence if the final figure is disputed.
Authoritative sources
Article 79 is published on the official Al Meezan – Qatar Legal Portal, with employee guidance from the Qatar Ministry of Labour. For an independent overview of Qatar leave rights, see DLA Piper’s Global Employment guide.
When leave is encashed
Unused annual leave is most commonly paid out as part of your final settlement when you leave the company, but it can also be settled during employment where the employer agrees. The value is fixed by your basic wage on the date the leave fell due and the number of unused days, using the ÷30 daily rate. Because the rate steps up from 21 to 28 days a year once you complete five years, long-serving employees accrue — and can encash — leave faster.
Taking leave versus cashing it
Qatar generally expects annual leave to be taken as rest, with encashment as the settlement mechanism for what remains. You can request to carry up to half of your unused balance into the next year rather than cashing it, which is useful if you would rather bank the time off. Any balance still outstanding when you leave is paid out.
Records that protect your payout
Your leave payout is only as accurate as your leave records. Keep track of leave taken versus accrued, and check your balance against your employer’s HR system periodically. Discrepancies are far easier to resolve while you are still employed than during a final settlement, so an annual reconciliation is worth the few minutes it takes.
Key takeaways
- Entitlement is 21 days/year under 5 years, 28 days/year at 5+ years (Article 79).
- Encashment = (basic ÷ 30) × unused days.
- Up to half of unused leave can be carried forward on request.
- Keep leave records reconciled to protect your final payout.
Frequently asked questions
How much annual leave do Qatar employees earn?
3 weeks (21 days) per year with under 5 years of service, rising to 4 weeks (28 days) per year once you complete 5 years, under Article 79 of the Labour Law.
What salary is Qatar leave encashment based on?
Your basic wage, as it stood on the date the leave became due, using a daily divisor of 30.
Can unused leave carry over in Qatar?
Yes. On request, you can carry up to half of your unused leave into the next year rather than encashing it immediately.
How is leave encashment calculated in Qatar?
Encashment = (monthly basic wage ÷ 30) × unused leave days. For example, QAR 9,000 basic and 18 days gives QAR 5,400.
When is unused leave paid out in Qatar?
Most commonly when employment ends, as part of your final dues, though employers may also settle it during employment.