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Overview
Qatari Riyal (QAR)
CURRENCY
Doha
CAPITAL
monthly
PAYROLL FRECUENCY
6
PUBLIC HOLIDAYS
0 to 10
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Qatar
Employer
Qatari Companies Payroll Contributions
In short, employers in Qatar must pay a single payroll contribution related to several concepts at once. Indeed, the percentage is as follows:
- 10%
Monthly Contributions related to Qatar Labour Law and QCF Employment Regulation
0% - 10%
Total Employment Cost
Employee
Worker Payroll Contributions
5%- 0%
Monthly Contributions related to Qatar Labour Law
0%- 8%
Monthly Contributions related to QCF Employment Regulation
5% - 8%
Total Employee Cost
Employee Income Tax in Qatar
There is no employee income tax.
Minimum Wage in Qatar
General
In essence, payroll outsourcing firms in Qatar must pay a minimum wage of 1,000 QAR. Furthermore, employers in Qatar must also give their employees a minimum of 300 QAR for food and 500 QAR for housing. However, they can be exempt from such payments if they provide these features directly.
$206 Minimum Wage per month
Payroll Contributions in Qatar
Payroll Cycle
To sum up, salary payments in Qatar are normally made at a monthly frequency, even by companies that work by outsourcing payroll. Thus, organizations that hire employees in Qatar must pay their salaries once a month.
13th Salary
In short, the Labour Law in Qatar or other regulations does not include a 13th salary paragraph. However, every employer, such as a professional employment organization, often issues bonuses to their employees at their discretion.
Employee Benefit in Qatar
The labor law does not establish more common benefits for the citizens of Qatar.
Visa and work permit in Qatar
In summary, if you are a foreign citizen that wants to perform short-time work in Qatar, you will need a work permit. Nevertheless, it is worth mentioning that Qatar authorities are implementing “Qatarization.”
Namely, employers in Qatar must prioritize Qatari nationals over foreign citizens regarding employment and job opportunities. Hence, they must apply for a government permit if they want to hire overseas employees.
As a result, all foreign citizens in Qatar must have a residence visa and a work permit sponsored by their employer (as long as he has an entity established in Qatar). Logically, Qatari and GCC nationals are exempt from this rule.
Last but not least, foreign employees providing PEO services in Qatar no longer need their employers’ permission to leave the country. Instead, they can leave Qatar without an exit permit, including domestic employees.
VAT in Qatar
In short, Qatar does not have a standard rate of VAT. However, Qatar authorities are planning to set one in the near future.
Working Hours in Qatar
General
Indeed, companies that provide PEO services in Qatar give their employees a working schedule of 48 hours a week. Ergo, they must work 8 hours a day during six days a week. Nonetheless, such a schedule decreases to 6 hours a day during the time of Ramadan.
Overtime
The Labour Law of Qatar stipulates that employers must pay for all work over the standard working week as overtime. Besides, their employment contract and collective agreements must regulate these overtime hours.
On the other hand, payroll outsourcing in Qatar does not pay a specific rate regarding overtime hours. However, employers in Qatar regularly use a rate of 125% of their standard wage for daytime overtime hours and 150% for nighttime overtime hours.
Working Week
Saturday to Thursday
Employee Termination in Qatar
Termination Process
In summary, companies expert in outsourcing payroll have termination processes based on their employment contracts and collective agreements. Above all, they depend mostly on the reason for termination and the type of contract. Therefore, employers and employees can both initiate the process by stating it in a termination notice.
Notice Period
The Labour Law in Qatar establishes that the notice period of all employees depends on their length of service. For example, employees with less than five years of service can use a notice period of one month.
On the contrary, they can use a notice period of two months if they have over five years of service.
Severance Pay
By all odds, payroll outsourcing in Qatar involves giving severance pay to employees who worked over a continuous year for a single employer. Most importantly, they must receive a payment based on their final wage.
In addition, they must also get a payment of their final basic wage for every year of service.
Probation Period
Regularly, most employers in Qatar set a performance evaluation period for new employees depending on their employment contracts. Nonetheless, it cannot be longer than six months.
Employee Leaves in Qatar
Paid Time Offs
Indeed, employees get paid time off in Qatar based on their length of service. For example, they can get a percentage of annual leave determined by their employer if their length is less than one year of service.
On the contrary, employees working for their employer for over a year but less than five years can enjoy three weeks of annual leave. Finally, employees who provide payroll outsourcing for companies in Qatar can get four weeks of annual leave once their length of service is five years.
Public Holidays
There are 6 national holidays throughout the year.
Vacation Holidays
There are 15 vacation holidays throughout the year.
Sick Days
Unequivocally, when employers in Qatar have sick or injured employees, they must give them two weeks of paid sick leave. Besides, they must also pay it at 100% of the employee’s salary during the first 14 days of sickness.
Nevertheless, experts in employer of record in Qatar indicate that such a rate decreases to 50% after these four days. Finally, companies that hire employees in Qatar must not pay sick leave after it reaches four months.
Paternity Leave
In essence, no regulations in Qatar include paternity leave, even in a professional employment organization. But, employers in Qatar often give their male employees five days of leave following their child’s birth.
Paternal Leave
Unfortunately, there are no paragraphs in the Labour Law of Qatar regarding parental leave.
Other Leave
Assuredly, companies that hire employees in Qatar can give other leaves depending on their religion. For instance, muslin employees can get a one-time pilgrimage leave of 20 days if they plan to make a pilgrimage to Mecca.
Maternity Leave in Qatar
To sum up, maternity leave in Qatar is fully paid for 50 days. Most importantly, mothers cannot enjoy less than 35 days of it following the child’s birth.
On the other hand, female employees of payroll outsourcing companies can extend their maternity leave for additional 60 days in the case of a complication. However, it involves providing a medical certificate and remembering such 60 days are unpaid.
Above all, mothers must have a length of service of one year or more to get maternity leave according to the Labour Law.
There are 50 leave throughout the year.