New Social Insurance Law Enforced in Qatar
The Amir issued Law No 1 of 2022 on the Social Insurance Law. The law is effective (January 03, 2023) six months after the date of its publication in the official gazette (July 03, 2022), with the exception of Article 4 (paragraph 5), Article 13 (paragraph 1) and Article 30 (paragraph 1) which shall be enforced starting from the date of the issuance of this law.
The New Social Insurance Law is applicable to all Qatari nationals, whether working in the public or private sector with a minimum age of 18 years and a permanent job of duration not less than 1 year. The law applies voluntarily to self-employed Qataris subject to the income bracket system. The exception to the applicability is Military personnel subject to the law relating to military retirement or employees/workers subject to retirement or private insurance scheme.
Pursuit to Article 11 of the new social security law, the contribution for the insured shall be calculated on the basis of the subscription calculation salary, not exceeding 100,000 QAR and the contribution shall be paid at the rate of 21% in the following manner:
|Employer Rate||Employee Rate||Maximum value||Basis of calculation|
|14%||7%||100,000 QAR||Basic salary +social allowance+ Housing allowance (cap. 6,000 QAR)|
Where the insured’s subscription salary was in excess of 100,000 QAR before the effective date of this law, the insured is exempt from this maximum value and will continue to contribute based on the subscription salary that was applicable before January 03, 2023.
The introduction of a housing allowance is a new entitlement under the Social Security Law. Where an insured receives a housing allowance or housing benefit from their employer, the value of such allowance or benefit must be included in the subscription salary of the insured, up to a maximum of 6,000 QAR. This limit is applicable even if the insured’s subscription salary was in excess of 100,000 QAR prior to the effective date of this law.
Upon retirement, subject to certain conditions, participants who have contributed to the fund for 15 years will be entitled to receive a housing allowance ranging in an amount up to a maximum of 6,000 QAR. In addition to payment upon retirement, employers will remain liable to compensate eligible participants for their housing allowance entitlement for the first 15 years of the employee’s service upon the termination of employment caused by the employee’s death or disability.
A minimum monthly pension allowance of 15,000 QAR is granted to eligible employees working in the public sector; however, no minimum amount has been determined for the private sector.
Under the new Social Security Law, the minimum age of retirement has been increased from 40 years of age to 50 years. The minimal period required to qualify for a pension entitlement has been increased to 25 years of service, rather than 15 years. Those who complete 30 years of service or above are eligible to receive additional benefits.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
View PDFNew Social Insurance Law in Qatar effective January 03, 2023