Mandatory Social Benefits (Employer Burden Items) in Qatar

When hiring employees in Qatar, businesses must comply with a set of mandatory social benefit contributions. These contributions are governed by the Qatar Labour Law, ensuring employees have access to essential benefits such as pensions, health insurance, and end-of-service gratuity. Compliance is crucial to avoid penalties and ensure employee satisfaction.

This guide outlines the key social benefit components, employer obligations, and best practices for managing employee benefits in Qatar.

Mandatory Social Benefits for Qatari Nationals and Expatriates

Social Insurance Contributions for Qatari Nationals

Qatari nationals are entitled to social insurance coverage as governed by the General Retirement and Social Insurance Authority (GRSIA). Contributions are shared between the employer and the employee.

Pension Contributions

Employer Contribution: 10% of the employee’s monthly wage
Employee Contribution: 5% of the employee’s monthly wage
Total Contribution: 15% of the monthly wage

End-of-Service Gratuity for Expatriates

Expatriate employees are not covered under Qatar’s pension system but are entitled to an End-of-Service Gratuity (EOSG), as stipulated in Qatar Labour Law. The gratuity is paid by the employer upon the completion of the employment contract.

End-of-Service Gratuity (EOSG)

Employer Responsibility: 21 days’ basic wage for each year of service after the completion of one year of continuous employment.
Calculation Basis: Based on the last drawn basic wage of the employee.

Example Calculations

Breakdown for Qatari Nationals

If a Qatari national earns QAR 10,000 monthly, the social insurance contributions will be as follows:

Component	Employer Share (QAR)	Employee Share (QAR)	Total Contribution (QAR)
Pension Contribution	1,000	500	1,500
Total Contribution	1,000	500	1,500

Breakdown for Expatriates

If an expatriate employee earns QAR 10,000 monthly and works for 5 years, the End-of-Service Gratuity (EOSG) will be calculated as follows:

Component	Calculation	Amount (QAR)
Basic Salary	QAR 10,000	—
Gratuity per Year	21 days’ basic wage = (10,000 ÷ 30) × 21	QAR 7,000
Total Gratuity (5 years)	7,000 × 5 years	QAR 35,000

How Is the End-of-Service Gratuity (EOSG) Calculated?

The End-of-Service Gratuity (EOSG) is calculated based on the employee’s last drawn basic wage. Employees are entitled to 21 days’ basic wage for each completed year of service. For each completed year of employment, the following formula applies:

Gratuity Amount per Year = (Last Drawn Basic Wage ÷ 30) × 21

Leave Entitlements for Employees in Qatar

Under Qatar Labour Law, employees are entitled to various types of leave to ensure adequate rest and time off for family or health-related reasons:

Type of Leave	Entitlement	Conditions
Annual Leave	21 days (increases to 30 days after 5 years)	Employee must have completed 12 months of service
Sick Leave	2 weeks with full pay, 4 weeks with half pay	Must provide medical certificate
Maternity Leave	50 days fully paid	Female employees are entitled to paid leave before and after childbirth
Paternity Leave	3 days	Available to male employees at the time of childbirth
Bereavement Leave	5 days	For the death of a spouse or close family member

How Globaine EOR Can Help

Navigating Qatar’s social benefits system can be complex. Globaine EOR provides comprehensive support to ensure employers meet all their obligations under Qatar Labour Law. Our services include:

Payroll Management: We calculate and manage all social benefit contributions accurately and on time.
Compliance Assurance: We ensure full compliance with GRSIA registration, payment schedules, and reporting requirements.
Employee Benefits Administration: From pensions to end-of-service gratuities, we ensure employees receive their entitled benefits.
Leave Management: We ensure all leave entitlements are provided in accordance with Qatar Labour Law.

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