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, statutory contributions where applicable, and mandatory benefits, while also crafting fundamental employment agreements.

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.

Things you need to know before hiring in Qatar

EOR Solutions in Qatar

Employment Contracts in Qatar

In Qatar, the process of creating and authenticating employment contracts has been streamlined through the Ministry of Labour’s multilingual E-Contract System and digital authentication services. Here’s a step-by-step guide to utilizing this service:

This digitalized authentication process not only enhances efficiency but also helps ensure 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. During the probation period, the employer may terminate the contract if the worker is found not capable of carrying out the work, provided the worker is notified at least three days before the termination date.

If a worker wishes to change employer during the probation period under Qatar’s labour mobility rules, a notice period to the current employer is generally required under the applicable legal framework. Where the worker leaves Qatar instead of transferring locally, different practical requirements may apply depending on the worker’s status and process followed.

13th Monthly Salary

Salary payments must be made by the employer at least once a month for monthly paid workers. 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: Qatari law does not provide the same formal employee versus independent contractor framework commonly seen in some other jurisdictions. In practice, companies should exercise caution when engaging individuals outside a standard employment structure, especially where immigration sponsorship, work authorization, and labour law protections may be affected.

Social Security in Qatar

In Qatar, employers are obligated to contribute to social insurance on behalf of eligible Qatari employees and, where applicable, certain GCC national employees covered by the relevant pension coordination rules. This forms a crucial part of the employment framework for covered workers, ensuring financial security and support for the workforce.

Tax Landscape and Evolving Regulations

Qatar does not levy personal income tax on employment income. At the same time, businesses must remain aware of the wider indirect tax and customs landscape in the Gulf region, as well as any future legislative developments. Excise taxes on specific goods and customs duties continue to apply where relevant.

The General Retirement and Social Insurance Authority of Qatar has introduced changes to the Social Security and Pension Law that affect covered employees in the private sector. The revised contribution rates effective from 3 January 2023 increased the total contribution to 21% of the contributory wage, with the employer’s share at 14% and the employee’s share at 7%.

Note: Social security contributions in Qatar are calculated according to the Social Security Law, with the contributory wage generally based on basic salary plus certain allowances and capped at a maximum limit of QAR 100,000. As of 3 January 2023, the contribution comprises 21% of the contributory wage, with the employer’s share at 14% and the employee’s share at 7% for covered employees.

Payroll in Qatar

Minimum Wages

Qatar’s minimum wage remains QAR 1,000.00 per month as the basic monthly wage. If the employer does not provide adequate housing and food, the employer must also pay a housing allowance of at least QAR 500.00 per month and a food allowance of at least QAR 300.00 per month. Where these allowances are paid rather than provided in kind, the minimum total monthly package is QAR 1,800.00. All values are denominated in Qatari Riyal.

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 wages are transferred in accordance with the Wage Protection System requirements and within the legally prescribed timeline.

How Mercans Can Help

Qatar Employee Hiring Cost

In the process of expanding our team in Qatar, the employer’s total cost will depend on the employee’s salary package, benefits, immigration costs for expatriates, and any applicable social insurance contributions for covered employees. Because Qatar does not levy personal income tax on employment income and social insurance does not apply to all workers in the same way, total hiring costs vary depending on nationality, sponsorship setup, and compensation structure.

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
• Construction: $30,303

Termination, Notice Period and Severance Pay

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 who have completed one continuous year of service are entitled to paid annual leave. Workers with less than five years of service are entitled to at least three weeks of annual leave, while those with five years or more of service are entitled to at least four weeks. Upon the worker’s written request, the employer may postpone not more than half of the annual leave to the following year. In addition to annual leave, employees are entitled to paid public holidays as provided by the Labour Law.

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, subject to the Labour Law. Medical certification remains essential 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. 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 on employment income. Corporate income tax rules may apply to businesses depending on their structure and taxable presence.

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 financial institutions in the State. The system is designed to help ensure accurate and timely wage payments within the private sector and supports the Ministry of Labour’s wage compliance framework.

For businesses seeking efficiency, the WPS Portal offers a convenient online solution to transfer employees’ salaries directly through the approved system, supporting timely payment and regulatory compliance.

Work Permit in Qatar

A Qatar work permit is part of the employer-sponsored process that allows a foreign national to work lawfully in Qatar. In practice, expatriate employees typically require both the appropriate entry visa or work approval and the necessary residence documentation to work and reside lawfully in the country.

Eligibility Criteria for Qatar Work Permit

Prospective applicants must meet the legal and administrative requirements applicable to the role and immigration process, including:

Valid Purpose

Applicants must have a legitimate employment purpose supported by a sponsoring employer in Qatar.

Professional Experience

Employers may require relevant qualifications or experience depending on the role, but this is not a universal statutory two-year rule for all work permit cases.

Financial Capability

Employers and applicants must satisfy the applicable immigration and employment documentation requirements for the intended category.

Intention to Return

This is not generally framed as a standard labour law eligibility criterion for all Qatar work permit cases.

Clean Record

Applicants may be required to provide supporting criminal record documentation depending on the immigration process and nationality.

Health Requirements

Applicants are commonly required to complete the applicable medical procedures linked to work and residence processing.

Best Employer of Record Qatar

Mercans Stands Out as the Leading Employer of Record in Qatar for the Following Reasons:

• Regulatory Compliance: Mercans ensures full compliance with all regulations set by the Ministry of Labour and relevant Qatari authorities. It strictly adheres to Qatar’s employment laws and standards, guaranteeing full legal compliance.
• Independent Operation: Operating as a distinct entity, Mercans offers reliable and customised employment services tailored to the unique needs of businesses in Qatar.
• Diverse Employment Support: Mercans efficiently manages various forms of employment, including employees, freelancers, contractors, and expatriates, providing flexible solutions to meet a wide range of workforce needs.
• Enterprise-Focused Solutions: Specifically designed to cater to large enterprises, Mercans delivers scalable and sophisticated services that accommodate complex organisational structures.
• Multi-Currency Payroll Management: Mercans facilitates payroll processing in multiple currencies, ensuring seamless financial operations for businesses operating in Qatar and internationally.
• Global Reach and Payroll Expertise: With a robust international presence, Mercans excels in managing multi-country payroll, enabling smooth operations across borders.
• Data Protection and Compliance: Mercans adheres to rigorous data protection standards, including GDPR compliance and SOC 1 & SOC 2 certifications, ensuring the highest levels of data security.
• ISO Certifications: Mercans holds ISO 20000 and ISO 27001 certifications, reflecting its commitment to excellence in IT service management and information security.
• Security Standards Compliance: Mercans meets the OWASP ASVS 3.0 standards, ensuring strong security practices in application development and management.
• HR Blizz Platform: The proprietary HR Blizz platform is a global payroll and talent management SaaS suite that streamlines payroll processes while ensuring compliance with Qatar’s regulations. With over 1,000 local experts, it provides in-depth knowledge of employment laws and business practices.
• G2N Nova Payroll Engine: G2N Nova offers global gross-to-net payroll processing across more than 100 countries, making it one of the most advanced payroll engines available. It can be deployed as a SaaS solution or integrated seamlessly with major Human Capital Management and Workforce Management systems.