Employer of Record Guide in Qatar
Qatar's dynamic economy and zero personal income tax make it an attractive destination for global talent, but navigating the unique employment landscape requires local expertise. Our comprehensive guide helps you hire compliantly and build your team in one of the Gulf's most promising markets.
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Qatar's thriving economy offers exceptional opportunities for businesses seeking skilled professionals in AI, cybersecurity, and healthcare sectors. With major economic hubs like Doha driving growth and a GDP per capita exceeding $68,000, the market presents compelling advantages for global expansion.
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Your EOR guide in Qatar
Understanding Qatar's employment regulations is essential for compliant hiring and smooth operations. From minimum wage requirements to leave policies and onboarding processes, this guide covers the practical details you need to manage your Qatar-based team effectively.
Minimum Wage
Qatar established its first minimum wage law in 2021, applying to all workers regardless of nationality.
| Worker Category | Minimum Monthly Wage (QAR) | Effective Date |
|---|---|---|
| All Workers | 1,000 | March 20, 2021 |
| Food Allowance | 300 (if not provided) | March 20, 2021 |
| Accommodation Allowance | 500 (if not provided) | March 20, 2021 |
| Total Minimum Package | 1,800 | March 20, 2021 |
Note: The minimum wage applies to all workers in Qatar, including domestic workers and agricultural employees.
Payroll Cycle
- Monthly: Most common payment frequency in Qatar
- End of Month: Salaries must be paid by the 7th of the following month
- Currency: Qatari Riyal (QAR)
Note: Employers must provide detailed pay slips showing salary breakdown, deductions, and allowances.
Individual Income Tax
Qatar does not impose personal income tax on employment income. Employees retain their full salary minus any voluntary deductions (such as pension contributions or insurance premiums).
Tax Residency Criteria
While Qatar has no personal income tax, tax residency may affect obligations in an employee's home country. Individuals spending 183 days or more in Qatar may be considered tax residents for their home country's tax purposes.
Employer Social Security Contributions
Employers in Qatar must contribute to the social security system for eligible employees.
| Contribution Type | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Social Insurance (Qatari Nationals) | 10% | 5% | 15% |
| Social Insurance (GCC Nationals) | 10% | 5% | 15% |
| End of Service Gratuity | Varies | N/A | Varies |
Note: Non-GCC expatriate workers are not covered by Qatar's social insurance system but are entitled to end-of-service gratuity.
Working Hours
The standard working schedule in Qatar varies by season due to extreme summer heat.
Standard Hours:
- 8 hours per day, 48 hours per week
- Ramadan: Reduced to 6 hours per day for Muslim employees
Summer Working Hours (June 15 - August 31):
- Outdoor work prohibited: 10:00 AM to 3:30 PM
- Maximum outdoor hours: 5 hours per day
Overtime Pay
- Rate: 1.25× regular hourly rate for hours worked beyond 48 hours per week
- Daily Overtime: 1.25× for hours beyond 8 hours per day
- Friday/Holiday Work: 1.5× regular rate
- Maximum: 2 hours of overtime per day, except in exceptional circumstances
Bonus Payments
While not legally mandated, many employers provide:
- Annual bonus: Often equivalent to one month's salary
- Performance bonuses: Based on individual or company performance
- Profit sharing: In some sectors
Full-Time vs. Part-Time
- Full-time: Standard 48-hour work week
- Part-time: Less than 48 hours per week (less common in Qatar)
- Contract workers: Fixed-term contracts are standard practice
Annual Leave
- Standard Entitlement: 3 weeks (21 calendar days) after completing one year of service
- Calculation: Based on basic salary only
- Timing: Must be taken within the year following entitlement
- Payout: Unused leave must be paid out upon termination
Sick Leave
- Paid Sick Leave: Up to 2 weeks per year at full pay
- Extended Sick Leave: Additional 4 weeks at half pay
- Medical Certificate: Required for absences exceeding 3 days
- Chronic Illness: Special provisions for long-term medical conditions
Maternity Leave
- Duration: 50 calendar days (approximately 7 weeks)
- Pay: Full salary during maternity leave
- Timing: Can be taken before and/or after childbirth
- Job Protection: Position must be held open during leave
Paternity Leave
- Duration: 3 days
- Pay: Full salary
- Timing: Must be taken within one month of birth
Hajj Leave
- Duration: Up to 2 weeks once during employment
- Pay: Unpaid (unless employer policy provides otherwise)
- Eligibility: Muslim employees only
Public Holiday Leave
- National Holidays: Paid time off for all official Qatar public holidays
- Religious Holidays: Additional consideration for religious observances
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | 21 days/year | Yes | Employer |
| Sick Leave | 14 days full + 28 days half | Yes/Partial | Employer |
| Maternity Leave | 50 days | Yes | Employer |
| Paternity Leave | 3 days | Yes | Employer |
| Hajj Leave | Up to 14 days | No | N/A |
| Public Holidays | Varies | Yes | Employer |
Termination Types
Termination With Cause:
- No notice period required
- Must involve serious misconduct or breach of contract
- Examples: theft, fraud, violation of company policies
Termination Without Cause:
- Requires notice period or payment in lieu
- Must comply with Qatar Labour Law requirements
Notice Period Requirements
Notice periods depend on the type of contract and length of service.
| Contract Type | Notice Period |
|---|---|
| Unlimited Contract | 1-3 months (as specified in contract) |
| Limited Contract | 30 days minimum |
| Probationary Period | 7 days |
Note: Either party may waive notice by mutual agreement or payment in lieu.
End of Service Gratuity
All employees are entitled to end-of-service gratuity based on length of service.
Calculation:
- Years 1-5: 3 weeks' basic salary per year
- Years 6+: 1 month's basic salary per year
- Resignation: 1/3 of full entitlement if service is less than 3 years, 2/3 if 3-5 years, full amount if 5+ years
Final Pay Requirements
Employers must settle all dues within 7 days of employment termination, including:
- Outstanding salary
- Accrued annual leave
- End-of-service gratuity
- Any other contractual benefits
Exit Permit Requirements
IMPORTANT: Employees need an exit permit to leave Qatar, which must be processed through the employer or relevant authorities. Recent reforms have simplified this process for most workers.
National Public Holidays
| Holiday | Date | Notes |
|---|---|---|
| New Year's Day | January 1 | |
| National Day | December 18 | Qatar's Independence Day |
| Eid Al-Fitr | Varies (lunar calendar) | 3-4 days |
| Eid Al-Adha | Varies (lunar calendar) | 4-5 days |
| Islamic New Year | Varies (lunar calendar) | 1 day |
| Prophet Muhammad's Birthday | Varies (lunar calendar) | 1 day |
Religious Observances
- Ramadan: Reduced working hours for Muslim employees
- Friday Prayer: Extended lunch break for Muslim employees
- Religious Holidays: Additional consideration for various religious observances
Holiday Pay Rules
- Eligibility: All employees entitled to paid public holidays
- Working on Holidays: 1.5× regular pay rate
- Substitute Days: If holiday falls on weekend, substitute day provided
Required Documents for Employment
Employee Documents:
- Passport: Valid for at least 6 months
- Educational Certificates: Attested by relevant authorities
- Experience Certificates: From previous employers
- Medical Certificate: Health clearance
- No Objection Certificate (NOC): If transferring from another Qatar employer
Employer Documents:
- Employment Contract: In Arabic and English
- Qatar ID Application: Biometric residence permit
- Work Permit: Processed through Ministry of Labour
Visa and Work Permit Process
- Entry Visa: Employer sponsors employee's entry to Qatar
- Medical Examination: Required within 90 days of arrival
- Qatar ID: Biometric residence permit (mandatory)
- Timeline: 2-4 weeks for complete processing
Employment Contract Requirements
Contracts must include:
- Job title and description
- Salary and allowances breakdown
- Working hours and overtime provisions
- Annual leave entitlement
- Notice period for termination
- End-of-service gratuity calculation
Banking and Financial Setup
- Bank Account: Required for salary payments
- Salary Certificate: Provided by employer for banking
- Credit Facilities: Available based on salary and employment status
Medical Insurance
- Mandatory: All employees must have health insurance
- Employer Responsibility: Provide adequate medical coverage
- Coverage: Must include basic medical, emergency, and maternity care
Worker Classification
Qatar's labour law primarily recognises employment relationships rather than independent contracting. Most work arrangements are structured as:
- Unlimited Contracts: No fixed end date (most common)
- Limited Contracts: Fixed-term agreements
- Part-time Employment: Less common but legally recognised
WRITER NOTE: Please verify current regulations regarding independent contracting in Qatar, as this area may have recent updates.
Kafala System Reforms
Qatar has implemented significant reforms to its labour system:
- Exit Permit: Most workers no longer need employer permission to leave Qatar
- Job Mobility: Employees can change jobs without employer consent after completing contract terms
- Minimum Wage: Universal minimum wage regardless of nationality
Cultural and Religious Considerations
Islamic Practices:
- Prayer Times: Accommodation for daily prayers
- Ramadan: Adjusted working hours and cultural sensitivity
- Dress Code: Conservative dress expectations, especially during Ramadan
Workplace Culture:
- Hierarchy: Respect for seniority and authority
- Relationship Building: Importance of personal relationships in business
- Communication Style: Generally indirect and diplomatic
Remote Work Considerations
Remote work arrangements are less common in Qatar but may be considered for:
- Specific Roles: IT, consulting, or project-based work
- Temporary Arrangements: During exceptional circumstances
- Hybrid Models: Combination of office and remote work
Legal Framework: Employment law still applies to remote workers, including working hours, overtime, and leave entitlements.
Industry-Specific Regulations
Construction and Infrastructure:
- Safety Requirements: Strict health and safety protocols
- Summer Working Hours: Mandatory restrictions during peak heat
Oil and Gas:
- Security Clearances: Additional background checks required
- Specialised Training: Industry-specific certifications
Financial Services:
- Regulatory Approval: Qatar Central Bank approval for certain roles
- Compliance Requirements: Enhanced due diligence procedures
Built-in benefits packages for Qatar
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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