An Employer of Record (EOR) in Qatar is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.
Discover the key considerations and essential details you should be aware of before opting for an Employer of Record (EOR) in Qatar.
Qatar Employment Contracts (E-Contract)
Key Insights:
- The Ministry of Labor (MOL) in the state of Qatar oversees employment-related matters and protects the rights of workers.
- The most common employment types in Qatar are fixed-term and indefinite contracts. The length of employment for fixed-term contracts can be between one to 5 years.
- Employment contracts must be in writing, and both the employer and the employee must sign the multilingual agreement. All work contracts must be submitted to MOL for verification.
- MOL launched e-services for contract verification. Private sector establishments can submit contracts for e-verification, allowing employees to verify and accept or reject the contract.
- All employment contracts must be in Arabic as well as the employee’s native language.
- Employers can use e-services by logging in through the National Authentication System (NAS) Tawtheeq, using a smart card. Payment is done through Hukoomi, with an MOL fee of 60 QAR as of 2023.
Qatar E-Contract Creation Process:
- Update the type of contract and details of the representative who signs the contract on behalf of the establishment.
- Establishment details will be filled automatically.
- Provide employee details such as QID or visa number, employee basic wages, allowances, and housing address in case of a housing allowance.
- Include contract term, probation period, and travel details in case of non-residents of Qatar.
- Once essential details are filled on the portal, download the contract. Both employer and employee need to sign the contract and upload it to the portal.
- Send the signed contract for verification to MOL and complete the payment.
- Once verified by MOL, the employment contract will be accessible to both employee and employer online.
Minimum Wages
The minimum wage in Qatar is QAR 1000. Employees are also entitled to the food allowance of QAR 300 and the housing allowance of QAR 500 if the accommodation and food is not provided by the employer. Overtime pay and end of service benefits are calculated based on the latest minimum wage. These minimum wages are applicable from March 2021.
Payroll Cycle
In Qatar, payroll is usually processed monthly, and salaries are paid during the first 7 days of the following month. Additionally, some employees receive bi-weekly payments on the 15th and 30th of each month.
Probation Period
The probation period in Qatar can be up to 6 months in indefinite contracts.
Paying Employees in Qatar
Employers must pay their employees through Wage Protection System (WPS) into a Qatar registered bank within 7 days of their due date in QAR. Employers who fail to pay wages on time may be subject to penalties.
Notice Period and Termination Policy
As per Pinsent Masons, the standard notice period during the probation period is one month. Both employer and employee can terminate the contract with a one-month notice period. The employee needs to provide a two-month notice period in case of leaving Qatar.
In case of contract termination, employers are required to provide a one-month notice for employees with length of employment less than two years and two-months notice if the length of employment is more than two years.
Severance Pay or End of Service Benefit
Employees terminated by an employer are entitled to an end-of-service benefit if they are not covered under the pension scheme. Severance pay is equal to 21 days of basic pay for each year of service. Employees fired due to misconduct or those who did not serve the notice period lose the severance pay benefit.
Working Hours
The standard working hours in Qatar is 48 per week and 8 hours per day. During Ramadan, the working hours cannot exceed 36 hours per week for Muslims.
Overtime Pay
Overtime in Qatar cannot exceed 2 hours per day. Compensatory off can also be provided as an alternative to the overtime pay. Employees are entitled to receive an overtime pay of 125% of regular pay if the overtime is outside of regular working hours or on a public holiday.
Employees are entitled to receive an overtime pay of 150% of regular pay if they work overtime during the night shift (9pm to 3 am) or on a Friday.
13th Month Salary
It is not mandatory to pay a 13th month salary as per the Qatar labor laws.
Social Security in Qatar
The General Retirement and Social Insurance Authority (GRSIA) oversees the social insurance related matters in Qatar. All working individuals need to contribute to social security and there are separate rates for residents and non-residents of Qatar.
Qatar Nationals (Gross Salary capped at 100,000 QAR)
The employer contribution is 14% of the gross salary and employee contribution is 7%.
- Employer Contribution: 14%
- Employee Contribution: 7%
GCC Nationals
Following are the guidelines for social security contributions for GCC nationals in Qatar.
Social Insurance Contribution Rates - 2023
| Nationality | Employee Rate | Employer Rate | Basis of Calculation |
|---|---|---|---|
| UAE | 6% | 14% | Basic salary + Social allowance + Housing allowance* |
| Kuwait | 7.5% | 11% | Basic salary + Social allowance + Housing allowance* |
| Saudi Arabia | 9% | 9% | Basic salary + Housing allowance* |
| Oman | 7% | 10.5% | Basic salary + Social allowance + Housing allowance* |
| Bahrain | 7% | 12% | Basic salary + Social allowance + Housing allowance* |
The specified social insurance contribution rates for Kuwait are applicable if the employee's gross salary is between KWD 230 and KWD 2,750.
The Housing Allowance for employer contribution is capped at QAR 6,000 per month, and any excess amount is the responsibility of the employee.
Personal Income Tax in Qatar
There is no personal income tax in Qatar.
Employee Benefits in Qatar
Leave Entitlements
| Leave Type | Entitlement |
|---|---|
| Annual Leave |
|
| Public Holidays | 11 days per year (workdays) |
| Sick Leave |
|
| Maternity Leave |
|
There are separate employment laws for the establishments in Qatar Financial Center. For more information visit Pinsent Masons or Thomson Reuters.
| Overview | |
| Continent | Asia |
| Country | Qatar |
| Capital | Doha |
| Time zone | UTC+03:00 (Arabia Standard Time) |
| Total Time zones | 1 |
| Working hours per week | 40 (25 During Ramadan) |
| Working week | Sunday–Thursday |
| Typical hours worked | 8 (5 during Ramadan) (Line staff work 48 hours of the week, Saturday–Thursday) |
| Personal Tax filing deadline | NA |
| Financial Year | 1 April – 31 March |
| Date format | dd/mm/yyyy |
| Currency | Qatari Riyal (QAR) |
| VAT | the standard rate is 5% |
| Contributions |
Conclusion
Selecting an Employer of Record (EOR) in Qatar emerges as a strategic choice for companies venturing into global expansion. Delegating responsibilities such as navigating local employment regulations, managing payroll intricacies, and ensuring compliance to the EOR enables businesses to effortlessly establish a presence in Qatar without grappling with the complexities of setting up a legal entity. This collaborative partnership empowers companies to concentrate on core objectives and growth strategies, ensuring their workforce in Qatar operates in strict compliance with local laws. The EOR simplifies international employment procedures and offers expert guidance in navigating the intricate landscape of Qatar's employment regulations.