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June 21, 2023
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3 mins
Are you considering expanding your business and hiring in Qatar? As a rapidly developing emirate on the west coast of the Persian Gulf, Qatar offers a wealth of opportunities for companies looking to tap into its robust economy. However, it's crucial to understand the unique aspects of the local employment landscape to ensure a smooth and compliant hiring process.
Here, we provide a comprehensive overview of the key factors you need to be aware of when hiring in Qatar. From employment contracts and payroll cycles to minimum wages, employee benefits, taxes, termination procedures, visa requirements, and more, we equip you with the essential knowledge to navigate the intricacies of the Qatari job market. Whether you're hiring employees or contractors, this blog will help you make informed decisions and set the foundation for a successful expansion into Qatar.
A written form of employment agreement between an employee and an employer is not mandated by law in the country. Employers may have contracts in English, but the Qatar Ministry of Labor only acknowledges contracts written in Arabic as valid.
Qatar Law specifies that workers working on monthly salaries must be paid at least once a month. All other workers’ salaries must be paid at least once every two weeks.
The labor law does not particularly mention any minimum wage for the Qatar nationals, as they differ according to employment agreements. However, they have set a 1,000 QAR minimum monthly wage for all foreign workers.
When the agreed-upon regular working hours have exceeded, the extra time is considered overtime work and the worker is paid as follows:
On regular working hours-Premium of 25%
Night work (9pm-3am)-Premium of 50%
On Public holidays and designated off days-Premium of 150%
Overtime hours should not exceed a maximum of two hours a day.
In Qatar, it is not legally required to give a 13th month bonus.
Labor laws in Qatar ensure that employees are well covered through their statutory benefits, but employers can go above and beyond the mandatory benefits to give their employees more perks.
10.00% — QFC Employment Regulation Monthly Contribution
5–8% — QFC Employment Regulation Monthly Contribution
Personal income is not taxed in Qatar.
There is no VAT in Qatar.
The termination process varies depending on the terms of the Employment Agreement in place between the employee and employer.
Above 1 year and less than 5 years — 30 days
Over 5 years - 60 days
To be entitled to severance payment, one needs to give one year of continuous service. The sum is based on the employee’s final wage. An amount equal to at least three weeks of the employee’s final basic wage for every year of service is considered the adequate severance pay.
Employees needing to work in Qatar for a short period of time must get a work permit, which varies depending on the type of work.
All employees, besides Qatar and GCC nationals, must have a residence visa and work permit sponsored by their employer (which must have an entity established in Qatar) to legally work and settle in Qatar.
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If you are hiring employees or contractors in Qatar, it's essential to understand these policies and ensure compliance with local laws. Book a demo at https://niural.com or DM us to learn more about compliant payroll and hiring practices in Qatar.
Follow @niuralhq for more insights on compliant payroll globally.