Employer of Record in Qatar

Guide to Hiring Employees in Qatar

Your guide to hiring employees in Qatar, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Qatar
Employer Of Record In Qatar

Capital City

Doha

Currency

Qatari riyal

 (

QR

)

Timezone

GMT+3

Payroll Frequency

monthly

Tax Year

April 1st - 31st March

Employer Tax

10%

Languages

Arabic

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How to Hire Employees In Qatar

Hiring in Qatar for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Qatar in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Qatar.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Qatar’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Qatar's oil and gas sector is a primary investment focus, supported by government policies promoting international investment and local opportunities.

English proficiency among 70-80% of the population facilitates hiring for foreign employers, easing communication in business.

Tax-free employment income and low social security contributions enhance cost efficiency for businesses operating in Qatar.

The country's highly skilled workforce, ranked third globally in human development, offers employers access to a talented pool of individuals.

Employment and Labor Laws in Qatar

Businesses can only operate smoothly in Qatar if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Qatar below, to avoid any compliance issues.

Employment Contract Requirements

Written employment contracts are mandatory in Qatar, with Arabic as the required language, but translations into foreign languages are permissible. Contracts may be indefinite or definite, with definite contracts limited to a maximum duration of 5 years. Essential details to include in employment contracts include:

  • Identification of both parties involved.
  • Commencement date of employment.
  • Detailed job description, including duties and responsibilities.
  • Employee's salary, payment method, and scheduled pay date.

Onboarding Process

We can help you get a new employee started in Qatar quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Qatar

The standard workweek is 48 hours. Employees can work 8 hours a day, six days a week. During Ramadan, the working day may be reduced to 6 hours. Fridays are usually a rest day.

Overtime in Qatar

In Qatar, overtime work is compensated according to contracts or collective agreements, with maximum limits on hours. Overtime exceeding 48 hours per week is paid at 125% of the average salary rate, while nighttime overtime is compensated at 150%.

Probation Period in Qatar

In Qatar, probation periods are specified by the employment contract and cannot exceed six months.

Employer of Record in Qatar

An Employer of Record (EOR) acts as the legal employer for workers in Qatar, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Qatar is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Qatar's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Qatar's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Qatar's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Qatar's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Qatar

Fiscal Year in Qatar

April 1st - 31st March is the 12-month accounting period that businesses in Qatar use for financial and tax reporting purposes.

Payroll Cycle in Qatar

The payroll cycle in Qatar is usually monthly, with employees being paid by end of month/ first few days of following month.

Minimum Wage in Qatar

The minimum wage for employees in Qatar is typically 2 QAR per hour, amounting to ~1,000 QAR per month for a typical 48 hour work week.

Bonus Payments in Qatar

Employers in Qatar are not legally obliged to provide 13-month payments. Bonuses are at the discretion of the employers.

Employment Taxes in Qatar

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10% on top of the employee salary in Qatar.

Tax TypeTax Rate
Qatar Labour Law Monthly Contribution/QFC Employment Regulation Monthly Contribution10%

Employee Payroll Tax Contributions

In Qatar , the typical estimation for employee payroll contributions cost is around 5% - 8%%.

Tax TypeTax Rate
Qatar Labour Law Monthly Contribution5%
QFC Employment Regulation Monthly Contribution5% - 8%

Individual Income Tax Contributions

Qatar does not impose taxes on employment income.

Income BracketTax Rate
All income0%

Pension in Qatar

Qatari government employees qualify for a state pension at 60 for men and 55 for women after 15 years of contributions. Early retirement at 40 is an option with the same contribution period. Contributions include 7% from employees capped at 7% of 100,000 Qatari riyals of earnings), 14% from employers, and government contributions to total 21%.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Qatar tailored to your needs.

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Work Permits & Visas in Qatar

Annual Leave & Company Policies In Qatar

Mandatory Leave Entitlement in Qatar

The annual leave entitlement in Qatar is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Qatar

Qatar has 4 mandatory holidays in a year:

HolidayDate
National Sports Holiday (14 February)14 February
Eid al-Fitr Holiday (21-23 April, exact day varies)21-23 April, exact day varies
Eid al-Adha Holiday (27-29 June, exact day varies)27-29 June, exact day varies
National Day (18 December)18 December

Paid Time Off in Qatar

In Qatar, employees receive paid annual leave based on their tenure:

  • Less than one year: Leave is at the employer's discretion.
  • Three weeks of annual leave for one to five years of service.
  • Four weeks of annual leave for over five years of service.
  • Employees can split leave into two periods and carry over unused leave to the next year with employer approval.

Maternity Leave In Qatar

Female employees in Qatar are entitled to a minimum of 50 days of fully paid maternity leave, which includes both prenatal and postnatal periods. The postnatal period should not be less than 35 days.

Paternity Leave In Qatar

Male employees in Qatar are not mandated to have paternity leave under the Labour Law. However, some employers may offer it based on company policies. It's common for employers to grant three to five days of leave to fathers after their child's birth.

Sick Leave In Qatar

After three months of service, an employee in Qatar is entitled to paid sick leave as follows:

  • Fully paid sick leave for the first 2 weeks.
  • 50% of salary for the next 4 weeks.
  • Any extension beyond the regular 6 weeks will be unpaid.

Parental Leave In Qatar

Qatar does not have a separate shared parental leave policy.

Paid Bereavement Leave

Employees are entitled to three days of leave in the event of the death of a direct family member. Should the death of the family member occur outside Qatar, employees are then entitled to 7 days.

Hajj Leave

In Qatar, Muslim employees may be entitled to a one-time unpaid pilgrimage leave of 20 days if they wish to make a pilgrimage to Mecca.

Employment Termination and Severance Policies in Qatar

Termination Process in Qatar

Termination procedures in Qatar require a mandatory termination notice from either the employer or employee to initiate the dismissal process. These procedures are contingent upon factors such as:

  • Employment and collective agreements.
  • Contract type and reason.

Notice Period in Qatar

In Qatar, the notice period for employees depends on their length of service:

  • 30 days' notice for employees with 1 year to less than 5 years of service
  • 60 days' notice for employees with over 5 years of service.

Severance in Qatar

To qualify for severance pay in Qatar, an employee must have completed one year of continuous service. The severance amount is calculated based on the final wage and comprises at least three weeks of the employees final basic wage for every year of service.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Qatar

Questions and Answers

What Is an EOR in Qatar?

An Employer of Record (EOR) in Qatar is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Qatar without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Qatar Without an Employer of Record?

Yes, you can hire in Qatar without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Qatar.

How Much Does It Cost To Employ Someone In Qatar?

The cost of employing someone in Qatar includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Qatar. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Qatar?

As of January 1, 2024, Qatar's minimum wage rates are:

  • 2 QAR p/h QAR per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Qatar?

An EOR simplifies payroll management in Qatar by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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