Qatar set for overhaul of employees end of service payouts

The country’s Ministry of Finance has launched a specialist committee under Prime Minister’s Decision No. 34 of 2025 to manage a new end of service bonus and employee contributions framework, as it looks to offer new incentives to expatriate talent and encourage more saving and investment by residents.

The committee, which brings together government, banking and financial experts, will look to develop a new investment-based savings scheme for employees’ end-of-service funds, which will be open to Qatari citizens and expatriate residents who opt in

A key part of the proposed approach is to channel and invest non-Qatari employees’ end of service gratuity payments, along with any voluntary contributions by employees, into dedicated investments. This would bolster existing pension plans for Qatari employees but is not aimed at replacing them.

Sarah Khasawneh, an employment expert with Pinsent Masons in Doha, said: “I see it as a clear signal that companies will need to shift from the traditional end-of-service gratuity model to a more structured, investment-backed approach,” he said.

“In practical terms, this means employers should start thinking about funding and managing EOSB liabilities in advance, rather than only at an employee’s departure. There’s a commercial upside to this: if done right, invested EOSB funds could ease long-term financial burdens on companies and provide employees with greater returns on their service benefits.

“It also demonstrates Qatar’s commitment to protecting employee rights and enhancing the employment landscape – which will help businesses attract and retain top talent.”

The new framework would not immediately change how the end of service payment is calculated or paid out but would instead look to put in place groundwork for active management and investment growth of gratuity funds in future, as part of an ongoing effort in the country to modernise employment practices.

Luke Tapp, an employment expert in the Middle East with Pinsent Masons, said the new committee would be a game-changer for both firms and employees in Qatar. Companies should begin preparing now for the expected impact of the new changes, with secondary legislation and further details of how the scheme will operate still to come.

This should include reviewing existing EOSB policies and beginning to plan for the financial and legal impact the proposed changes may have, and open communication lines with staff on how the new scheme would be implemented, he said.

“In the coming months, organizations would be wise to prepare by reviewing their HR policies and financial plans for EOSB, ensuring they can integrate with the new system,” he added.

“Ultimately, this initiative can strengthen trust in the employer-employee relationship and contribute to a more sustainable workforce environment in Qatar.”