Employer of Record (EOR) Qatar

In the context of Qatar, our Employer of Record (EOR) Qatar services operate as the legal employer, aligning with the structure in Saudi Arabia. Functioning as a Global Professional Employer Organization (Global PEO), this key role encompasses extensive oversight of various employment aspects. The Employer of Record in Qatar ensures strict adherence to local labor laws and regulations, managing essential tasks such as payroll, taxes, and mandatory benefits, while also crafting fundamental employment agreements.

In Qatar, the Employer of Record (EOR) Qatar assumes crucial responsibilities, including:

• Ensuring rigorous compliance with the country’s employment laws.
• Managing the intricacies of the local payroll process.
• Overseeing the filing of employment-related taxes and necessary paperwork.
• Providing the worker with accurate payslips.
• Facilitating the seamless distribution of the worker’s salary payments.

Optimize your global expansion with our seamless Global PEO services, eliminating the need for entity setup. Our Employer of Record (EOR) Qatar guarantees legal presence, compliance, and Intellectual Property protection, enabling your business to concentrate on its core functions. Navigate global mobility and work visas effortlessly while cultivating a diverse and efficient global workforce. Choose Mercans as your trusted Employer of Record Qatar for a compliant and efficient employment experience for your global workforce.

EOR Solutions in Qatar

• EOR for Prospective Employees: Mercans offers seamless Employer of Record (EOR) solutions for businesses that have already identified their ideal candidates in Qatar. Our services encompass every aspect of the employee lifecycle, ensuring compliance with Qatar labor laws and regulations.
• EOR + Recruitment: For those seeking assistance in talent acquisition, our EOR and recruitment services provide a holistic solution. We tap into our extensive network and expertise to help you find, onboard, and retain top talent, streamlining your expansion into the Qatar market.
• Visa Sponsorship and Global Mobility: Navigating the intricacies of expatriate employment is simplified through our visa sponsorship and global mobility services. We facilitate the relocation of your international workforce, ensuring compliance with Qatar immigration and employment laws.
• AOR for Contractor Payments: Businesses grappling with contractor payments can leverage our Assistance on Record (AOR) services. We handle the complexities of contractor payments, guaranteeing accuracy and compliance.
• Converting Freelancers to Employees: Mercans supports the transition from independent contractors to permanent employees in Qatar. Our expertise ensures smooth conversions while adhering to legal requirements.
• HCM Integration: Integrate Mercans’ EOR services seamlessly with your HCM system in Qatar for real-time data exchange, enhanced compliance, and cost-efficiency. Trust our expertise for a unified, compliant, and efficient approach, elevating your workforce management and payroll operations.

Things you need to know before hiring in Qatar

Employment Contracts in Qatar

In Qatar, the process of creating and authenticating employment contracts has been streamlined through the innovative Digital Authentication Service. Here’s a step-by-step guide to utilizing this service:

This digitalized authentication process not only enhances efficiency but also ensures a secure and accessible method for both employers and employees in Qatar.

Working Hours 

The maximum allowable working hours are 48 per week or eight hours per day. During the Ramadan period, working hours are shortened to 36 hours per week or six hours per day.

Employees have the right to a minimum of one day off per week, typically observed on Fridays. Additionally, employees should refrain from working on more than two consecutive Fridays.

It is mandatory for employees not to exceed five consecutive working hours without taking at least a one-hour break.

Probation Period 

Probationary periods, lasting a maximum of six months, are allowed. Within the probation period, the employer must provide a one-month notice if terminating the employee.

Should the employee choose to resign during the probation period, a one-month notice is necessary when moving to another employer within Qatar. However, if the employee intends to depart Qatar, a two-month notice period is applicable.

13th Monthly Salary 

Salary payments must be made by the employer at least once a month. There is no legal obligation for 13-month payments, and employers have the discretion to grant bonuses as they see fit.

Employees vs Independent Contractors Compliance 

Note: The Qatari law does not legally distinguish between employees and independent contractors. Instead, the primary legal distinction is the citizenship status of the individual. Hiring companies should be cautious and ensure proof of existing visa sponsorship when engaging with independent contractors due to the illegality of independent freelancing without proper sponsorship in Qatar.

Social Security in Qatar

In Qatar, employers are obligated to contribute to social insurance on behalf of Qatari employees. This forms a crucial part of the employment framework, ensuring financial security and support for the workforce.

Tax Landscape and Evolving Regulations

While Qatar does not currently impose net wealth/worth taxes, inheritance or gift taxes, property taxes, or luxury and excise taxes, it is important to note the dynamic nature of the tax landscape. The Gulf Cooperation Council (GCC) countries, including Qatar, have embarked on the introduction of a Value-Added Tax (VAT) system. Qatar is in the process of finalizing its VAT legislation, marking a significant development in the region’s fiscal policies. Additionally, excise taxes on specific goods are already in effect, and customs duties continue to be applied, emphasizing the need for businesses to stay informed and compliant with evolving tax regulations.

The General Retirement and Social Insurance Authority (GRSIA) of Qatar has introduced changes to the Social Security and Pension Law, impacting private sector employees in the country. The revised contribution rates, effective from 3 January 2023, aim to enhance the social security framework. A comparison between the new rates and the previous rates, along with the basis of calculation, is outlined below:

Payroll in Qatar

Minimum Wages:

As of December 2023, Qatar’s current minimum wage stands at QAR 1,800.00 per month, a benchmark that has been in effect since March 20, 2021. This inclusive amount comprises QAR 

1,000.00 as the basic monthly wage, supplemented by a housing allowance of QAR 500.00 and a food allowance of QAR 300.00. Ensuring fair compensation, this national minimum wage reflects Qatar’s commitment to providing a decent standard of living for its workforce. All values are denominated in Qatari Rial.

Payroll Cycle:

In Qatar, employees engaged on an annual or monthly basis are required to receive their payments at least once a month. For other employees, the payment frequency must be no less than once every two weeks. It is obligatory to conduct these transactions in the local currency, specifically the Qatari Riyal (QAR). Employers must ensure that payments are disbursed within seven days following the conclusion of the respective pay period.

How Mercans Can Help

Payroll Cycle

Navigating the intricacies of Qatar’s business landscape requires a nuanced understanding of the payroll cycle. Mercans, with its extensive experience, offers comprehensive solutions tailored to the unique requirements of the Qatari payroll system. From initial data input to the final disbursement, our services ensure accuracy and compliance with local regulations, providing organizations in Qatar with a seamless payroll experience.

Pay employees and contractors in the local currency

In the vibrant business environment of Qatar, smooth payroll transactions in the local currency are paramount. Mercans excels in this aspect, ensuring payments for both employees and contractors are conducted in Qatari Riyal. Our commitment to precision enhances transparency and facilitates seamless financial transactions within the country, making Mercans a reliable partner in the Qatari payroll landscape.

Payroll Setup, Payroll Processing and Payroll Administration

Managing payroll setup, processing, and administration in Qatar demands a comprehensive understanding of local nuances. Mercans, as a trusted payroll partner, provides tailored solutions to meet the specific needs of organizations in Qatar. Our dedicated team meticulously configures payroll processes, ensuring each cycle is executed with precision, guaranteeing compliance with Qatar’s regulatory framework.

Statutory Filings and Payments

Staying compliant with Qatar’s regulatory landscape is a priority for operational success. Mercans brings its expertise to the forefront by handling statutory filings and payments with meticulous care. Whether it’s navigating tax regulations or meeting other compliance requirements, Mercans ensures that organizations in Qatar remain fully compliant, minimizing risks associated with non-compliance and providing peace of mind.

Qatar Employee Hiring Cost

In the process of expanding our team in Qatar, let’s consider hiring a new member with an estimated gross annual salary of USD 10,000. The breakdown of monthly and yearly costs includes a gross monthly pay of USD 833.33 for the employee. Additionally, the employer incurs an extra cost of USD 100 for social insurance and contributions. The hiring process involves a service fee from a recruitment platform, such as Skuad, amounting to USD 699. Consequently, the total monthly cost of employment encompasses the gross monthly pay, employer cost, and Skuad fee, totaling USD 1,632.33. Factoring in estimated taxes and contributions at approximately USD 41.67, the employee’s net monthly salary stands at USD 791.66. This example provides a detailed overview, aiding in transparent budgeting and decision-making for our expansion endeavors in Qatar.

Industry Sector Average Annual Salary (In US$):

• Education and Training: $54,600
• Petroleum and Gas: $66,000
• Manufacturing: $34,944
• Mining: $46,137
• Retail Trade: $55,965
• Health Care and Social Assistance: $76,713
• Construction: $30,303
• Finance and Insurance: $40,991

Termination, Notice Period and Severance Pay

Termination of Employment

Termination of employment in Qatar is subject to specific conditions outlined in the country’s labor regulations. Employers hold the right to dismiss employees under several circumstances. Firstly, termination with appropriate notice is a common practice, and employers are not obligated to provide a reason for dismissal, except when the employee is protected from such actions. Additionally, summary dismissal may occur due to an employee’s gross misconduct or prolonged absence exceeding 12 weeks of sick leave. Termination by mutual consent is also a valid option.

Repatriation Responsibility

Employers in Qatar have the authority to dismiss employees summarily, without notice, based on the reasons stipulated in the Qatari Labour Law. Notably, employees are safeguarded from dismissal or notice during annual leave, maternity-related leave, or pilgrimage leave. Furthermore, employers bear the responsibility of facilitating the repatriation of the employee to their home country within two weeks of employment termination, unless the employee secures a new role in Qatar.

Notice Period and Payment

Regarding the notice period, employers terminating an employment contract must adhere to specific minimum statutory notice periods based on the duration of the employee’s service. Employees with less than two years of service require a one-month notice, while those with over two years of service necessitate a two-month notice. Employers do have the option to make a payment in lieu of notice.

Severance Pay (End-of-Service Gratuity)

Severance pay, referred to as end-of-service gratuity, is determined by the length of an employee’s service. For individuals with one to five years of service, three weeks’ pay is applicable. This rate increases to four weeks’ pay for five to 10 years of service, five weeks’ pay for 10 to 20 years, and six weeks’ pay for over 20 years of continuous service. Non-Qatari nationals entitled to severance pay are also provided a repatriation flight as part of the termination process.

Employee Benefits in Qatar

Statutory Leaves in Qatar:

In Qatar, statutory leaves are governed by specific regulations, encompassing annual leave, sick leave, and maternity leave to ensure employees’ well-being and work-life balance.

Annual Leave:

Employees with a tenure of one to five years are entitled to three weeks of annual leave, while those with over five years of service receive four weeks. Furthermore, up to 50% of the annual leave entitlement can be carried over to the following year upon the employee’s request. In addition to annual leave, employees enjoy 11 public holidays annually if they fall on a workday. Those with over three months of service are guaranteed a minimum of 20 working days per year.

Sick Leave:

After completing three months of service, employees in Qatar are entitled to sick leave with corresponding pay. This includes two weeks at 100% pay, followed by an additional four weeks at 50% pay. In cases where sickness extends beyond six weeks, unpaid sick leave, for a maximum of 12 weeks, becomes applicable. Employers may dismiss an employee without notice after this period, emphasizing the importance of medical certification for sick pay eligibility.

Maternity Leave:

For female employees with at least one year of continuous service, Qatar mandates 50 days of maternity leave at full pay. Notably, a minimum of 35 days must be taken after childbirth. In situations involving pregnancy-related health issues, employees are entitled to an additional 60 days of unpaid leave. Furthermore, mothers are granted daily nursing breaks of up to one hour for one year following the child’s birth, highlighting the commitment to supporting working mothers during this significant life event.

Public Holidays 

Personal Income Tax in Qatar

Qatar does not levy personal income tax; instead, it imposes a 10% income tax on businesses based on their taxable income.

Wage Protection System (WPS) 

The Wage Protection System (WPS) serves as an essential tool for businesses, providing an electronic platform for streamlined salary transfers to workers through authorized banks. Developed by Qatar Central Bank, this system, mandatory for all institutions registered with the Ministry, ensures accurate and timely wage payments within the private sector. Specifically tailored for various labor categories, the WPS guarantees adherence to agreed-upon salary disbursements.

For businesses seeking efficiency, the WPS Portal offers a convenient online solution to transfer employees’ salaries directly from the office with a simple click, saving valuable time without endorsing alternative payment methods.

Work Permit in Qatar

A Qatar work permit, also known as a work visa, is an official document granting authorization to foreign individuals, including Indians, allowing them to undertake employment within Qatar. This legal instrument plays a crucial role in facilitating lawful employment for foreign workers in the host country.

Eligibility Criteria for Qatar Work Permit:

Prospective applicants must meet specific eligibility criteria to qualify for a Qatar work permit:

Valid Purpose

Applicants must have a legitimate and valid reason for seeking employment in Qatar.

Professional Experience

A minimum of 2 years of relevant work experience with a previous employer is typically required.

Financial Capability

Demonstrating financial sufficiency to cover living expenses for the duration of the stay, including any dependents, is essential.

Intention to Return

Providing clear documentation indicating the intention to return to the home country after the specified employment period is crucial.

Clean Record

Applicants should have a clean record without any criminal activities. This may necessitate providing a Police Clearance Certificate (PCC) during the application process.

Health Requirements

Meeting the basic health parameters stipulated by the authorities is a prerequisite for obtaining a Qatar work permit.