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Comprehensive Guide to Employee Benefits and Compensation in Qatar

What are Employee Benefits?

Employee benefits can be referred to as non-financial perks offered to an employee, as mentioned in the employment contract. It can be legal or voluntary. Employee benefits also function as a gratitude to the workforce for participating in the company operations. These benefits can comprise overtime, medical insurance, profit sharing, and vacations. Offering such additional benefits also helps boost employee productivity, pushing them to do better.  

The following article will provide all the information you need to know about the benefits and compensation policies in Qatar.

Compensation Laws in Qatar

  • Unlike various nations, Qatar did not have a national wage for employees until 2017. Section 29 has recently mentioned that wages must be paid in Qatar’s official currency. Other currencies are only accepted if an agreement is created with the employer and the client per the Government Financial System.
  • Monthly/annual employees should receive their salaries every month. The salary must be deposited at the worker’s bank account, along with a written agreement by the employer/delegated representative.
  • The Ministry of Administrative Development, Labor, and Social Affairs usually prioritizes Qatari employees compared to foreign employees. However, skilled and qualified foreign citizens are also offered employee benefits in Qatar.
  • The working hours without overtime is 48 hours per week. However, during Ramadan, the working time is reduced to 36 hours.

Anyone violating these laws is heavily fined or penalized.

How to Design an Employee Benefits Program for Employees in Qatar?

It is a simple task to design an employee benefits program regardless of your company’s size. 40% of the amount is paid as employee compensation policy in Qatar. Well-thought plans that address all the requirements and demands of the workers are the way to go. A perfect employee benefits program strikes a perfect balance between the company and its clients.

The following ten steps will help you to form a perfect employee benefits program – 

  • Determination of goals: The first step is setting objectives and creating a framework for the program. A set of questions should be answered via your goals, such as –
  1. How will the benefits provide value to the employees?
  2. Will the benefits focus on health and wellbeing?
  3. What medical plans can you offer?
  • Determination of budget: The second step includes the understanding of costs for your program. Proper methods should be implemented to analyze the present expenses and predict future expenditures. Again, making a baseline budget is recommended if you are new to this. 
  • Input from employees: It is vital to have essential employee feedback. Personal interviews and questionnaires are ideal as they are direct and easy to answer. This will also make your employees feel valued. 
  • Conducting additional requirement assessments: When it comes to benefits in Qatar, it is essential to check whether demands are properly fulfilled or not. If not, you must make the necessary adjustments to your benefits scheme strategy. 
  • Fulfilling legal procedures: Benefits should be procured according to legal guidelines. These should include unemployment insurance and social security. Employees who do not abide by these rules are fined.
  • Designing the plan: After the rules and costs are determined, you can develop the benefits plan. Typical benefits in Qatar include sick leaves, maternity benefits, and dental benefits. The program should answer the following questions, such as:
  1. Are the unused benefits necessary?
  2. Do the employees need to contribute to the plan?
  3. Who will administer the benefits?
  4. Is there a scope for cost savings?
  • Development of communication strategies: The clients must understand the benefits because it gets added to their value proposition. This is why you should maintain a proper communication system. It is essential to communicate with the client around the following areas –
  1. What are the changes offered in terms of benefits?
  2. Are premiums changing?
  3. What are the discount programs offered which could save your employee money?
  • Helping employees with the best options: Personalized insurance is something which everybody seeks. Try to help out employees personally if they seem to be confused or troubled.  This can also include other steps such as:
  1. Attending all meetings.
  2. Understanding the plan choice options.
  3. Asking questions and seeking one-to-one support.
  • Providing year-round education: Periodic meetings on benefits and compensations in Qatar are crucial to keeping your employees updated. It helps employees understand their responsibilities better and informs them about what to expect from the company. 
  • Employee periodic assessments: Assessments must be conducted periodically to understand whether the employees’ goals are adequately met.

Types of Guaranteed Benefits in Qatar

  • All employee benefit plans in Qatar include guaranteed benefits to retain employees. The four holidays in the country should have different routines for various companies. Employees receive three weeks of paid leave, which gets uplifted into four weeks after five years of services.
  • Sick days are also counted in with a 100% compensation to the employer’s salary. However, after 14 days of leave, 50% of the salary is deducted. So, if the employee takes sick leaves beyond this, they don’t receive worker’s compensation in Qatar.
  • Maternity Leave in Qatar provides an entitlement of over 50 days. A 35-day leave is also offered to the mother after childbirth. Sixty days of unpaid leave is also offered if the woman can submit a medical certificate. But this is only possible if the woman has been an employee of the firm for over a year.

Employee Benefits for Expatriates

Benefits differ in terms of Qatari nationals and foreign employees. A mandatory employee benefit of 10% monthly salary must be paid if you are a Qatari national. The average salary per month is up to 10,761 Riyals. In addition, housing, transportation allowances, and health insurance fall under the benefits. However, service payments are mandatory for both nationals as well as foreigners. 

How are Employee Benefits Taxed in Qatar?

Foreign citizens willing to settle in Qatar need not pay personal income tax. This means that total amounts are retrieved without any deductions by the state. However, if you are into commercial activities, it is mandatory to pay taxes as mentioned by the Companies Tax Law. Apart from this, there are no other taxes, making Qatar an attractive country for expats.

Restrictions for Qatar’s Benefits and Compensation

COVID-19 measures are taken very seriously in Qatar. Without vaccination, you won’t receive your desired benefits and compensations in Qatar. Since Qatar has a strict business culture, women do not get any compensation and benefits if they do not follow the workplace’s dress code. Drug peddling is strictly prohibited and sometimes can lead to termination of the work roles. 

Hence, it is advised to understand Qatar’s business culture and rules before taking a job in Qatar.

Supplemental Benefits for Employees in Qatar

A list of optional benefits can be recorded in Qatar. The following includes:

  • Dental Benefits in Qatar (only for full-time employees)
  • Long term disability insurance
  • Vacations
  • Company cars
  • Childcare Centers
  • Retirement Savings
  • Tuition Benefits

How Multiplier Can Help with Benefits Management in Qatar?

Establishing a new business in Qatar is not a cakewalk. Apart from obtaining multiple permits, there are numerous factors to consider. Employee compensation policy in Qatar is one such crucial factor that employers must craft according to the country’s laws and regulations. It can get challenging if you’re not well versed in the compensation structure in Qatar. 

This is where a third-party platform like Multiplier can be instrumental for your organization. Since our in-house experts are aware of the laws and rules of over 150 countries, we can safely guide you through the intricacies of employee compensation policy in Qatar. With our knowledge and legal insights, you can create an effective employee compensation program in Qatar. 

Contact us today to talk to our experts!

Frequently Asked Questions

An average salary of over QAR 13,000 is paid to the Qatar employees, suggesting that the other half of the population earns way lesser comparatively.

Employers must pay a minimum wage of over QAR 1,000 to all employees in Qatar, including domestic workers. QAR 500 must be provided for accommodation, and QAR 300 should be paid for the food.

It is always possible to get jobs in Qatar because their employment rate is 0.1%. In addition, the economy is fast-growing, with several positions available for those who want to work.

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