Payroll in Qatar
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Mercans is your ultimate destination for top-tier Payroll Services in Qatar. With a strong foothold in the Qatari market, we provide unparalleled Payroll solutions tailored to your needs. Whether it’s Payroll in Qatar or Payroll Services in Qatar, Mercans ensures accurate and compliant operations, supported by our local expertise and multi-currency capabilities. Trust Mercans for seamless Payroll processing in Qatar, backed by years of industry experience and a dedicated team of payroll specialists.
Everything you need to know before running payroll in Qatar
Qatar Payroll Requirements
According to Qatar Labour Law, employee salary payments must be processed using the Wages Protection System (WPS). Payroll records are required to be converted into a structured Salary Information File (SIF), as stipulated by the Ministry of Labour and Social Affairs (MOLSA) and communicated to local banks by the Qatar Central Bank. This file format is mandatory for WPS processing to monitor employees’ salary payments. Employees on annual or monthly contracts should receive their salaries at least once a month, while those on other contracts should be paid at least every two weeks. All companies must utilize the WPS for payment within seven days of the due date. Non-compliance may result in penalties such as imprisonment for up to a month and fines ranging from QR2,000 to QR6,000 per employee.
In contrast, under QFC Employment Regulations, there is no requirement to comply with the WPS. Employers in the QFC are obligated to pay employees their salaries at least monthly. #PayrollOutsourcingQatar
Payroll Cycle, Working Hours and Overtime
Payroll Cycle
Article 66 of the law stipulates that employees on annual or monthly salaries must receive their wages at least once per month, while all other workers should be paid at least biweekly. As a #PayrollProviderinQatar, we ensure compliance with these regulations to facilitate seamless salary processing.
Working Hours
The standard workweek is capped at 48 hours, with daily hours set at eight throughout the year. However, during Ramadan, the weekly maximum decreases to 36 hours (six hours per day) for both fasting and non-fasting employees. The Labour Law also outlines the regulations for overtime compensation.
Overtime
Employees can work additional hours beyond the regular schedule, as long as the total daily working hours do not surpass 10, unless it’s essential to prevent significant loss, dangerous accidents, or to rectify their consequences.
Overtime Pay Calculation
Overtime refers to any hours worked beyond the regular work schedule. As per Article 74, employees are entitled to additional compensation equivalent to their standard wage plus a minimum of 25% for any extra hours worked beyond the normal schedule. If overtime occurs between 9 p.m. and 4 a.m. on a workday, employees are entitled to their regular wages plus an additional 50%. Article 75 stipulates that if an employee works on a scheduled rest day, they should receive their standard wages plus a premium of no less than 150%. Overtime hours are capped at a maximum of two hours per day.
Minimum Wages and 13th Month Salary
Minimum Wages
As of March 20, 2021, the minimum wage in Qatar stands at QAR1,800.00 per month for the year 2021.
13th Month Bonus
Employers are not obligated to make 13-month payments as per legal requirements. Bonus issuance is at the discretion of the employer.
Gratuity
In Qatar, gratuity is calculated based on the final basic salary and amounts to twenty-one days’ pay per year of service exceeding one year. As outlined in Article 54 of Qatar’s labor law, employees with over a year of continuous service are entitled to end-of-service benefits upon termination.
Steps Involved in Company Setup in Qatar
Foreign companies wishing to establish a presence in Qatar can opt for either setting up a branch or incorporating a new entity. A prerequisite for foreign corporations conducting business in the country is the appointment of a representative. Our company registration agents in Qatar are available to address inquiries regarding the incorporation process. Several mandatory steps apply to investors planning to establish a company in Qatar:
- Reserve a company name with the Commercial Registry and Trademark Department.
- Open a bank account and deposit the paid-up capital.
- Prepare the Articles of Association and seek approval from the Commercial Companies Control Department.
- Authenticate the Articles of Association.
- Submit the required documents and register with the Commercial Registry under the Chamber of Commerce and Industry.
- Complete tax registration and obtain a company seal.
- Acquire a trade license and signage license from the Municipality of Doha. Additionally, specialized permits and licenses may be necessary based on the company’s activities.
The aforementioned procedures provide an overview of the essential steps for establishing a registered and operational legal entity. We advise consulting our specialists for comprehensive guidance on company formation in Qatar. Our team of experts can assist in navigating the process and adhering to foreign ownership regulations.
Payroll Taxes in Qatar
Social Security
The General Retirement and Social Insurance Authority (GRSIA) of Qatar has announced changes in the Social Security and Pension Law with updated contribution rates applicable to private sector employees in Qatar, effective from 3 January 2023. The updated employee and employer rates with a comparison to the previous period rates along with the basis of calculation have been summarized below:
| NEW RATES effective from 3 Jan 2023 | OLD RATES prior to 3 Jan 2023 | |||||
|---|---|---|---|---|---|---|
| Nationality | Employee Rate | Employer Rate | Basis of calculation | Employee Rate | Employer Rate | Basis of calculation |
| UAE | 6% | 14% | Basic salary + Social allowance + Housing allowance* | 10% | 10% | Basic salary + Social allowance |
| 20% | - | Other allowances | 20% | - | Housing allowance + Other allowances | |
| Kuwait | 7.5% | 11% | Basic salary + Social allowance + Housing allowance* | 8.5% | 10% | Basic salary + Social allowance |
| 18.5% | - | Other allowances (applicable only if Gross salary not exceed KWD 2,750 and not less than KWD 230) | 18.5% | - | Housing allowance + Other allowances (applicable only if Gross salary not exceed KWD 2,750 and not less than KWD 230) | |
| 2.5% | - | Gross salary (maximum KWD 1,500) | 2.5% | - | Gross salary (maximum KWD 1,500) | |
| Saudi | 9% | 9% | Basic salary + Housing allowance* | 9% | 9% | Basic salary |
| - | - | - | 18% | - | Housing allowance | |
| Oman | 7% | 10.5% | Basic salary + Social allowance + Housing allowance* | 7.5% | 10% | Basic salary + Social allowance |
| Bahrain | 7% | 12% | Basic salary + Social allowance + Housing allowance* | 7% | 10% | Basic salary + Social allowance |
| 19% | - | Other allowances | 17% | - | Housing allowance + Other allowances | |
*Please note that the Housing Allowance is capped at QAR 6,000 per month for employer contribution calculation. Any amount exceeding this limit is the employee’s responsibility.
Personal Income Tax
In Qatar, there are no personal income taxes; however, income derived from business activities within Qatar is subject to taxation at a rate of 10% of the taxable income.
Payroll Compliance in Qatar
Statutory Filings and Contributions
In Qatar, employers are obligated to submit the following statutory filings. Mercans assists you in completing the necessary filings as per the Qatari local laws.
| Declaration / Payments and Statutory Body | Declaration / Payment Frequency | Due dates | Purpose | Process Definition |
|---|---|---|---|---|
| Salary declaration General Retirement and Social Insurance Authority (GRSIA) | Monthly | Starting from the employee joining date | Contribution of monthly (GRSIA) | The employer is required to verify employees' salaries upon hiring and update this information on the GRISA online portal. Any revisions to salaries must also be promptly updated on the online portal. |
| GRISA Monthly Contribution General Retirement and Social Insurance Authority (GRSIA) | Monthly | Starting from the employee joining date | Contribution of monthly (GRSIA) | The GRSIA generates monthly confirmations for all registered employees. Both the employee and employer must transfer their contribution amounts to a local Qatar bank account and inform GRSIA on a monthly basis. |
| Wage Protection System (WPS) Labour Department Regulatory Authority(WPS) | Monthly | Maximum salary to be paid by every month of 7th | Qatar has adopted the Wages Protection System (WPS), mandating Employers (Regulated Entities) to electronically transfer salaries to their employees' bank accounts. At the heart of WPS is the Salary Information File (SIF), which Regulated Entities or Employers, monitored by the Ministry of Labour and Social Affairs (MoLSA), must create and submit to banks for salary payment processing. | The Header comprises two lines: the first line, representing the fields' addresses/names, followed by the second line, designated for the corresponding values assigned to each address in the first line, as illustrated in Table (1). |
Wage Protection System File Format
Employers are obligated to submit Salary Information Files (SIFs) to banks in order to process the salary payments. The SIFs must contain the following information as per the guidelines by Labour Department Regulatory Authority(WPS)
The files consist of two sections
- Header: This section contains essential non-replicable data concerning employers and payers’ details.
- Salary records: These records contain detailed information about workers, along with their payroll statements for a specific period.
The Header comprises two lines: the initial line, representing the first line of the SIF, is designated for field addresses/names. The subsequent line, corresponding to the second line in the SIF, is allocated for the values assigned to each address in the first line, as illustrated in Table (1):
Table 1
- Field Name
- Establishment/Employer EID
- File creation/formation date
- File creation/formation time
- Payer
- The ID number of the establishment that assumes payment of employees’ wages from its bank account”
- ID No. (if the wage payment process is from a personal bank account)
- Payers’ Bank Symbol
- Payers’ account No. IBAN
- Salary Year/Month
- Total salaries
- Number of records
The records within the SIF file encapsulate information regarding the salaries of employees within establishments, with their details outlined in the Header. Each record uniquely presents the details of an individual worker, identified by either their QID number or visa number.
Salary Information File (SIF) Records
The SIF records encompass details regarding salary payments made to employees for the designated salary month (specified in the Salary Year and Month field in the SIF header). Each record pertains to a specific employee and is presented on a new line. Only one record per employee is permitted within the SIF, with employees identified by their QID or Visa ID.
Table 2
- Record Serial Number
- Personal Number
- Visa Number
- Worker Name
- Worker’s Bank Symbol
- Worker’s Bank Account
- Payment Frequency
- Number of working days
- Net Wage Received
- Basic Salary
- Number of overtime hours
- Extra Wages
- Deduction Amount
- Basic Entitlement
- Comments
Mercans, as a payroll specialist in Qatar, aids you in the creation of WPS files.
Employee Benefits in Qatar
Leave Entitlements
| Leave Type | Eligibility | Compensation | Leave Duration |
|---|---|---|---|
| Annual Leave | • Completion of probationary period • Employer approval required – 30 days advance notice • No carry-forward by employee; max grace period for the employer 60 days | Paid | Year 1-5 – 3 weeks Year 5+ - 4 weeks |
| Sick Leave | • Doctor’s notice | Paid/Partially- paid/Unpaid | First 2 weeks – fully paid Following next 4 weeks – 50% paid Following anything - unpaid |
| Bereavement Leave | • Death of direct family member | Paid | 7 days |
| Marriage Leave | • Marriage | Paid | 15 days ( true copy of Marriage certificate ) |
| Childbirth Leave for Male Employees | • Birth of a child | Paid | 3 - 5 days |
| Haji Leave | • Once during service period | Unpaid | 2 weeks |
| Maternity Leave | • Completion of the probation period | Service Period: Employed atleast 1 year | Before Delivery - 15 days After Delivery – 35 days |
| Unpaid Leave | • Employer prior approval | Unpaid | Max durations is defined by the employer. |
Benefits of Payroll Outsourcing in Qatar
For employers in Qatar, our Payroll services are powered by a robust tool designed to seamlessly operate across diverse countries, ensuring regional uniformity and meeting specific client requirements. This tool aligns with our commitment to deliver:
Enhanced Security
- Incorporating industry-leading security measures to safeguard sensitive data.
- Maintaining ISO 27001 and ISAE3402 certifications for stringent adherence to information security protocols.
Consistent Performance
- Ensuring sustainable performance that meets the dynamic demands of payroll services.
Flexibility and Scalability
- Offering flexibility and scalability to adapt to evolving client needs and changing business environments.
Collaborative Cloud Platform
- Utilizing a Cloud-based platform to facilitate collaborative work, enhancing efficiency and accessibility across teams.
By incorporating ISO 27001 and ISAE3402 certifications, we demonstrate our commitment to the highest standards of information security and operational integrity.
Key Features of Electronic Payroll Support
Full Traceability
- Ensuring a traceable process from generation to transmission and validation.
- Expert human validation ensures consistency between stored information and that accepted by regulatory bodies.
Enhanced HR Efficiency
- Streamlining the payroll settlement process to enhance the efficiency of the human resources area.
- Achieving significant time savings through optimized use of electronic payroll support.
Certified Suppliers
- Partnering with certified suppliers holding ISO 27001 certification to uphold the highest standards of information security.
- Secure data transmission processes are facilitated through these certified suppliers, ensuring the integrity of our services.
With our adherence to ISO 27001 and ISAE3402 certifications, Mercans ensures that our clients in Qatar benefit from a state-of-the-art payroll tool while enjoying peace of mind with top-tier information security standards.
Payroll Solutions in Qatar
Unlock the potential of seamless payroll processing in Qatar with Mercans’ Global Payroll Solutions. Our adaptable models ensure local compliance, support multi-currency transactions, and integrate with global Human Capital Management (HCM) and Enterprise Resource Planning (ERP) systems. Payroll management has never been more straightforward.
Discover Our Flexible Models:
- SaaS (Software as a Service): Customized for enterprise businesses handling multi-country payroll with complex data points, locations, currencies, and languages. Our SaaS model optimizes operations for maximum efficiency.
- Managed Services: Tailored for mid-sized and large enterprise businesses managing multi-country payroll, our Managed Services model provides on-demand HR expertise, ensuring security, reliability, and compliance.
- HRMS (Human Resource Management System): Ideal for mid to large businesses expanding their operations, our HRMS model offers a comprehensive suite of functionalities, including payroll and benefits management. Businesses can choose the features they need, creating a personalized and effective solution.
Streamline Payroll with Mercans’ Technology and Integrations
Mercans leads the way in delivering outstanding payroll services in Qatar, offering a diverse range of tailored solutions to suit the specific needs of our clients. Choose Mercans as your reliable partner, ensuring a smooth and effective payroll process in Qatar’s dynamic business environment.
- Technology: Experience innovation at its finest with Mercans’ advanced technology driving our global payroll solutions forward. Learn more about our technological advancements here.
- Integrations: Effortlessly integrate your Human Capital Management (HCM) systems with Mercans’ solutions, enhancing efficiency and connectivity. Discover the benefits of integration here.
- Recognitions: Partner with a recognized leader in excellence. Mercans has garnered accolades for its dedication to delivering exceptional payroll services. Explore our awards and recognitions here.
Outsource to Payroll Company in Qatar
In the dynamic realm of business opportunities, Qatar shines as an exceptional destination, offering a diverse cultural environment, robust economic growth, and a strategic hub in the Middle East. With its flourishing market, varied industries, and a talented workforce, Qatar presents an enticing landscape for business expansion. Amidst this backdrop, Mercans emerges as the premier choice for navigating the complexities of the Qatari business environment.
Our commitment to 100% local compliance, extensive understanding of Qatari labor regulations, and comprehensive range of services position us as the perfect partner for businesses looking to establish a successful presence in Qatar. By partnering with Mercans, businesses can harness our expertise to ensure seamless operations, statutory compliance, and a strong foundation for growth in this dynamic and promising market. With Mercans as your trusted ally, embark on a journey of success and prosperity in the heart of the Middle East.