How to hire and pay employees in Qatar

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Qatar Facts and Stats

Currency

Qatari Riyal is the official currency of Qatar. Its currency symbol is ر.ق, QAR.

Languages

Arabic is the official language of Qatar, with Qatari Arabic or Gulf Arabic the local dialect.

Population

The population of Qatar is 2.931 million (based on World Bank numbers as of 2021).

Payroll frequency

The payroll frequency is monthly at a minimum.

Hiring

Grow your team in Qatar

No entity, no problem

To start growing your team in Qatar, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This
allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Qatar

One of the top 10 wealthiest countries in the world, Qatar has a growing economy driven by the petrol-based industry. The low tax regime and good levels of English
proficiency make it a compelling option for expanding into the Middle East region.

Due to 90% of the Qatari workforce being foreign citizens, Qatari nationals are given priority over foreign workers when applying for a job. If a company still wants to hire a
foreign individual over a Qatari citizen, government approval is mandatory. While all labour-related documentation might be written in English, employers need to draft all
documentation in Arabic, so it gets recognized by the Ministry of Labour.

Administrative processes can take a long time. Significant investment is needed to start business in the country and the recurrent annual costs can be substantial. Pairing
up with an already established partner can be beneficial.

Employee costs in Qatar are expected to be 10% of their salary.

Why Qatar is good for remote workers

Remote working is growing in Qatar since the 2020 COVID-19 pandemic. A big part of the Qatari public sector is working remotely. Both remote and in-office workers have
the same benefits – wages, accommodation, food provisioning and/or allowance payments should remain the same.

The expatriate community in Qatar is growing mainly due to higher salaries, lower tax regimes and a good work life balance. Fast internet access is available everywhere in
the country with an almost 100% 5G network coverage.

There are specific rules for foreign/Qatari individuals. Generally, income tax to employees is not applicable. Individuals might be subject to income tax if their work has
generated qualifying Qatar-source income.

Start growing your remote workforce now

Employment

Contract

Contracts in Qatar must include:

In Qatar, employers should provide foreign workers with a contract of employment (Service Contract), or an official letter of agreement which specifies the conditions of
employment. According to Qatari law, it is not mandated that an employment contract between an employee and an employer must be in writing, where verbal agreement is
possible, although written agreement is preferred.

Employment contracts may be written in English, although it is the Arabic version that will be officially recognised by the Qatar Ministry of Labor. It is recommended to have
any employment documents attested to by a notary, although it is not compulsory.

The employment contract takes precedence over local labour laws due to greater stipulations and terms, although there are laws that provide certain protection regardless
of the existence of a contract. The duration of an employment contract is typically open-ended, moving from a traditional two-year contract to one that extends indefinitely
until the assigned work is done or until either party wishes to terminate the contract.

Probation

Probation periods in Qatar cannot be longer than six months.

Emerald Technology can onboard employees in Qatar within 48 hours.

Restrictive Covenants

It is permissible to have restrictive covenants contained in the contract of employment to the extent necessary to protect the legitimate interests of the employer, provided
the nature of the employees’ work allowed them to know the company’s clients and/or confidential information about the business. The covenants must be restricted in
relation to duration (which must not exceed one year) and the nature of the business to be protected. Non-compete clauses and customer non-solicit clauses typically last
no longer than 6-12 months. Employee non-solicits are also permissible.

Insurance
01.

Healthcare and Insurance:

Employers, at their expense, are required to enrol non-Qatari employees and their family members into health insurance policies offered by insurance companies registered
with the Ministry of Public Health in Qatar. They must be able to provide proof of such insurance coverage upon renewal of their employees’ residency.

Failure to maintain continuous and valid insurance coverage will result in employers being required to recompense the costs of healthcare services of the beneficiaries to the
Insurance Law, and they are not entitled to recover such costs.

02.

Social Security:

Employers are required to contribute 10% to the Qatar Labour Law / QFC Employment Regulation Monthly Contribution.

Leave Policy
01.

Maternity Leave:

Expectant mothers are entitled to 50 days’ paid maternity leave in Qatar, of which no less than 35 must be taken following the child’s birth. In the case of a complicated birth,
an employee can extend her maternity leave by an additional 60 days (unpaid) on production of a medical certificate. To be eligible for the maternity entitlement, an
employee must have worked for their employer for a minimum of one year.

There is no legal requirement for an employer to provide paternity leave to their employees. However, it is typical for an employer to offer five days leave to fathers following
the birth of a child.

02.

Sickness Leave:

On completion of three months’ continuous service, employees are entitled to two weeks of paid sick leave, compensated at 100% of salary. After the initial 14 days of
sickness, an employee can receive another four weeks’ paid leave at the rate of 50% of salary. Any sick leave beyond this is unpaid.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Due to Qatarisation, a Qatar-based employer who wishes to hire an employee from abroad must first obtain permission from the government. For a foreigner (non-Qatari or GCC national) to legally work and reside in Qatar, they must have a residence visa and work permit under the sponsorship of their employer (which must have an entity established in Qatar).

Emerald Technology can onboard employees in Qatar within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

A termination notice is mandatory to initiate the process of dismissal from either side. Notice periods are dependent on an employee’s length of service:
1-5 years’ service: 1 month’s notice,
5+ years’ service: 2 months’ notice.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

Upon completion of one year of continuous service with the employer, each employee is entitled to a severance payment upon termination based on an employee’s final
salary and at least three weeks of the employee’s final basic salary for every year of service.

Time off

Statutory Time off

In Qatar, the annual leave entitlement is dependent on the employee’s length of service, as follows:

Under 1 year’s service: a percentage of annual leave determined by the employer,

1-5 years’ service: 3 weeks’ annual leave,

5+ years’ service: 4 weeks’ annual leave.

Employees can take annual leave in a maximum of two different periods. Any untaken leave can be carried over to the next vacation year, subject to the employer’s agreement.

Public Holidays

  • January 1st: New Year’s Day
  • February 8th: National Sports Day,
  • March 6th: March Bank Holiday,
  • May 3rd: Eid al-Fitr,
  • May 4th- 5th: Eid Al-Fitr holiday,
  • July 10th: Eid al-Adha,
  • July 11th-12th: Eid-al-Adha holiday,
  • December 18th: National Day.
Emerald Technology can onboard employees in Qatar within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

The monthly minimum wage in Qatar is 1,000 QAR. Employers must also pay allowances of at least 300 QAR for food and 500 QAR for housing if they do not supply employees with these directly.

02.

Working Time and Overtime:

The working week in Qatar is typically 48 hours (eight hours per day, six days per week). The working day may decrease to six hours per day during Ramadan. Fridays are
usually considered a rest day. Where an employee is requested to work overtime or work on holidays, there are maximums in the number of hours allowed and all overtime
in excess of the standard working week is paid at a compensatory rate (typically 125% of average salary rate for daytime hours and 150% for hours performed at night).

03.

Salary Payments:

The payroll frequency is typically monthly. The employer must make salary payments at least once a month.

04.

Bonuses in Qatar:

Employers may issue bonuses at their discretion.

05.

Income Tax:

There is no tax on personal income in Qatar.

06.

Social Security Contributions in Qatar

Employees are required to contribute 5% to the Qatar Labour Law Monthly contribution, or a 5-8% contribution towards the QFC Employment Regulation Monthly Contribution, in addition to the 10% employer contribution.

Country Qatar

Worker misclassification in Qatar

Similar to other countries, Qatar has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.

Group 1977

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