As companies look to grow operations, many look beyond borders and seek international employees. However, doing so comes with many challenges, such as setting up an Employer of Record (EOR), figuring out various labor laws, and navigating the various costs of hiring an employee abroad.
While salaries are essential when budgeting for international hires, there are many other costs to be aware of. For example, in Qatar, employers are required to provide employees with a monthly stipend to help subsidize costs around the home. Other mandatory costs include overtime, severance, and social security contributions.
Employers should also consider supplementary benefits, like coworking passes or gym memberships. This can help with employee retention and satisfaction.
Overall, it can be overwhelming to determine the total costs on your own. This article will guide you through the costs of hiring employees in Qatar.
Mandatory Costs
When hiring employees in Qatar, you’ll need to consider numerous mandatory costs. These include wages, taxes, benefits, overtime pay, and severance pay. Adherence to these costs will ensure you are compliant with local labor laws and regulations.
Salary
Determining the salary for your new Qatari employee can be challenging, especially when salaries differ across industries. While the minimum wage is QAR 1,000 (USD 274) per month, the average salary stands much higher at QAR 15,700 (USD 4312) per month.
However, depending on the industry you’re hiring in, salaries may be lower or higher. For example, employees working in tech, their average salary is approximately QAR 13,776 (USD 3783) per month. In telecommunications, the average salary stands at QAR 12,002 (USD 3296) per month. Customer support is on the lower end, with an average salary of QAR 8605 (USD 2393) per month.
In addition to the salary, employers are required to pay allowances of at least QAR 300 (USD 82) for food and QAR 500 (USD 137) for housing only if they do not provide the employees with these directly. This is a critical cost to keep in mind when hiring an employee from Qatar.
Taxes and Benefits
When hiring employees in Qatar, it’s essential to be aware of the mandatory taxes and contributions. Employers are required to pay 10% of an employee’s salary, which goes towards social security.
Paid Leave
Employees in Qatar are entitled to various types of paid leave, many of which are paid for by the employer.
Annual Time Off and Holidays
When it comes to annual time off, the amount employees get depends on their seniority. For one year of service, employees are entitled to three weeks. If they’ve been employed for more than five years, they receive four weeks each year. For employees that have been employed for less than one year, the amount of days they receive is determined by the employer.
Qatar has six public holidays in addition to religious holidays. Religious holidays vary by year, and the date of them is determined by the lunar cycle. All employees are entitled to be fully paid on public and religious holidays.
Parental Leave
New mothers are entitled to 50 days of paid maternity leave; a minimum of 35 days must be taken following the birth of the child. Maternity leave is paid for by both the employer and social security.
In special circumstances, maternity leave can be extended by 60 days, however, this is unpaid. There is no legal requirement for paternity leave, but it is common to offer five paid days off to new fathers.
Sick Leave
Employees are entitled to two weeks of fully paid sick leave, which is covered by the employer. However, they are only entitled to this if they’ve been employed for three months. Following the initial two week period, an employee is entitled to receive an additional four weeks of leave, however, they only receive 50% of their salary. Any sick leave beyond six weeks is unpaid.
Religious Leave
Employees in Qatar are entitled to paid religious leave. Muslim employees are allowed a one-time pilgrimage leave of 20 days.
Overtime Pay
The standard work week is 48 hours — eight hours from Saturday to Thursday. If an employee works more than 48 hours a week, they receive 125% of their standard hourly rate. In the instance that overtime is worked during the night, employees must receive 150% of their hourly rate.
Severance Pay
Severance is eligible for employees who have worked for the same employer for more than a year.
- 1-5 years of service: Three weeks pay
- 5-10 years of service: Four weeks pay
- 10-20 years of service: Five weeks pay
- 20+ years of service: Six weeks pay
Supplemental Costs of Hiring in Qatar
In addition to statutory benefits, employers may also provide supplemental benefits. Offering additional benefits can help attract top talent, motivate staff, and increase retention.
Benefits
Making sure your new employees are happy and healthy is essential. You can support their health by offering a robust benefits package. While many employers choose to offer private health insurance for their employees, doing so comes at an extra cost.
The price will significantly vary depending on the type of private health insurance and coverage. Common health insurance providers in Qatar are AXA and Allianz.
An EOR like Borderless will typically offer benefits packages. This will usually include medical, dental, vision, and life insurance along with a retirement savings plan.
Bonuses and Extras
Qatar doesn’t have any mandatory bonuses, such as the 13th-month bonus that’s common in many other countries. However, performance-based bonuses and signing bonuses are typically offered. Additionally, employers may want to consider offering employees a lunch or coffee stipend.
Employers also need to take workspace costs into account when hiring employees in Qatar. Since new hires will typically be working remotely, they’ll need to set up a home office or access a coworking space.
Providing a home office stipend can be hugely beneficial. It can go towards a company laptop, ergonomic office chairs, or keeping your system secure, like with antivirus software.
Coworking offices have become the go-to for many employers. Not only do coworking spaces provide employees with a designated space to work, but they also encourage collaboration and networking.
The majority of coworking offices are in Doha. Servcorp, in the city center, offers a dedicated desk for QAR 1080 (USD 296) per month. Regus, a popular coworking chain, provides a hot desk for QAR 2100 (576) per month.
Offering a gym membership is another popular fringe benefit many employers offer. On average, Qatar’s gym membership price is one of the highest in the world, currently standing at QAR 436 (USD 120) per month.
Work With Borderless
Hiring employees in Qatar may feel overwhelming, especially with so many different costs to be aware of. Working with an Employer of Record (EOR) can help take the stress out of global hiring and budgeting.
An EOR like Borderless will do the heavy lifting, guaranteeing that you compliantly hire and pay employees in Qatar. To get started, book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
