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Compensation & Benefits in QaQatar.

Population

2,795,484

Languages

1.

Arabic

Country Capital

Doha

Currency

Qatari riyal (QAR)

Building a compensation and benefits management package is critical to your company’s success in Qatar. Your plan needs to be competitive, and it needs to meet or exceed Qatar’s compensation laws.

If you don’t have the time to source benefits or simply don’t know where to start, G-P can help. When partnering with us, you won’t have to establish a subsidiary before you can give out benefits and compensation, freeing you to focus on your business while we manage compliance.

Qatar compensation laws

Qatar did not have a national wage until 2017, when it set the rate at QAR 750. This policy was a temporary measure, but in 2021, Qatar set a mandatory minimum wage for all workers of QAR 1,000.

Guaranteed benefits in Qatar

All Qatar benefits management plans should first include guaranteed benefits to ensure compliance. Qatar celebrates 4 holidays, for which employees get varying time off:

  • Eid Al Fitr (3 days)
  • Eid Al Adha (3 days)
  • Independence Day (1 day)
  • National Sports Day (1 day)

Employers also give employees 3 working days off for holidays. Employees who have worked for at least 1 year at a company get 3 weeks of paid leave, then 4 weeks after 5 years of service.

Additionally, employers must provide employees with a round-trip ticket to their home country at least once a year or every 2 years. You should clarify if that ticket will be provided for the whole family or just the employee in the employment contract. Keep in mind that Muslim employees are entitled to an unpaid pilgrimage leave for up to 2 weeks. They can take this leave only once during their employment.

Qatar benefits management

One of the best ways to disperse benefits and increase retention rates is by providing additional benefits that employees may expect. One common benefit is supplementary health and life insurance. You should specify in the employment contract whether you’re providing this benefit to just the employee or their family as well.

Total compensation for employees in Qatar also includes salary, a housing allowance, and a transportation allowance. Some employees also seek education allowances for their children. We recommend negotiating the total compensation package and seeing what allowances and bonuses are taxable or not.

Restrictions for benefits and compensation

Companies expanding to Qatar through traditional methods have to establish a subsidiary before providing compensation and benefits. Unfortunately, it can take months before you incorporate, which may delay the rest of your operations.

However, working with G-P eliminates this restriction. As a global Employer of Record (EOR), we’ll hire employees on your behalf, so your company won’t have to worry about Qatar compensation laws or staying compliant.

Qatar competitive benefits planning

Benefits are a significant aspect of hiring a team and building a company. When you’re ready to grow in a new country, you’ll need to understand the regulations and expectations surrounding employee benefits. With the right approach, employee benefits planning in Qatar can be the root of your success.

Qatar employee benefits plans

Your benefits plan is a way to encourage growth in new countries. In the recruitment phase, a well-thought benefits package can persuade talented workers to apply for your vacancies, helping you build your team.

Once you have a team in a new country, the provisions you offer can improve morale in the workplace. When employees feel that a company values their contributions, they’re more likely to put forth their best effort. They’re also more likely to stay with the company.

Possible fringe benefits include:

  1. Health insurance schemes
  2. Transportation allowances
  3. Housing allowances
  4. Holiday bonuses

Required benefits and compliance

While fringe benefits can make your company more competitive in the labor market, you should consider required benefits first. The labor laws in Qatar describe a few provisions every employer must provide. These requirements include:

  1. Paid annual leave
  2. Paid sick leave
  3. Pension contributions for Qatar citizens

Designing Qatar employee benefits plans

If you’re hiring a team in a new country, designing your benefits plan can be challenging. The right approach to the planning process can help you address the many aspects of benefits, from financial concerns to market standards.

1. Set a budget.

Examine your financial capabilities to determine how much you’re willing to spend on your employees’ provisions.

2. Learn about the labor market.

You can only compete with other companies if you understand the market at large. Research companies in the area to find out which benefits are commonly offered. Employees will probably expect these market standards even though they’re not legally required.

3. Decide on benefits.

With the information you’ve gathered, you can choose provisions that reflect the market and fit within your budget. Start with the required provisions and add more as your funds allow.

Average cost of benefits

With every employer paying a different price for benefits, an average cost isn’t the most helpful metric for your planning process. Factors such as location, industry, and size can affect how much a company chooses to pay for benefits.

Rather than relying on an average, you can create a budget unique to your revenue. Setting a percentage for your benefits spending is an easy way to modify your budget as your revenue changes. When your company grows, you can scale your employee provisions accordingly.

How to calculate benefits

Benefits calculations will vary depending on the provision. If you choose to provide an end-of-year bonus, for example, you can set an amount and divide it evenly among your team. The same rule applies to transportation and housing allowances.

You can find information about calculating the required benefits in the labor laws. Pension contributions are among the more complex calculations.

How are employee benefits taxed in Qatar?

The country does not impose income tax on employees’ salaries and associated earnings.

Employee health benefits

Employers are not required to provide health insurance for employees, but they may choose to offer a scheme as a supplemental benefit.

Partner with G-P to build your everywhere workforce.

As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.

Learn more about our platform and request a proposal today.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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