Key Components of Payroll in Qatar

To effectively manage payroll in Qatar, companies must address the following key areas:

1. Overtime Payments
2. Mandatory Contributions (Pensions for Qatari Nationals and EOSG for Expatriates)
3. Leave Entitlements and Holiday Pay
4. Salary Distribution and Payment Methods
5. End-of-Service Gratuity (EOSG) Calculation
6. Payroll Outsourcing

Each of these elements has specific rules, processes, and deadlines outlined by Qatar Labour Law.

1. Overtime Payments in Qatar

Under Qatar Labour Law, employees are entitled to overtime pay if they work beyond the standard 48-hour workweek.

Overtime Payment Rates:

• Extra hours on weekdays: 125% of the hourly wage
• Hours on weekends and holidays: 150% of the hourly wage

Hourly Salary Calculation:

• Hourly Rate = Monthly Salary ÷ 30 (days) ÷ 8 (hours per day)

Maximum Overtime Limits:

• Maximum of 2 hours/day, except in cases of emergency.

💡 Pro Tip: Use payroll software or partner with an EOR in Qatar to automate overtime calculations and ensure compliance.

2. Contributions for Qatari Nationals and Expatriates

Social Insurance Contributions for Qatari Nationals
These are managed by the General Retirement and Social Insurance Authority (GRSIA):

• Employer Contribution: 10% of monthly wage
• Employee Contribution: 5% of monthly wage
• Total Contribution: 15% of monthly wage

End-of-Service Gratuity for Expatriates
Expatriates are not subject to pension contributions but are entitled to End-of-Service Gratuity (EOSG) as per Qatar Labour Law:

• 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 employee’s last drawn basic wage.

💡 Pro Tip: Automate contributions and gratuity calculations to avoid miscalculations.

3. Leave Entitlements in Qatar

Employees in Qatar are entitled to various types of leave, including annual, sick, and maternity leave, among others.

💡 Pro Tip: Employers must maintain detailed records of employee leave entitlements and payroll adjustments.

4. Salary Distribution and Payment Methods

Companies in Qatar must comply with the Wage Protection System (WPS), ensuring timely payment of wages through employees’ bank accounts.

Steps to Distribute Salaries:

1. Data Collection: Collect HR inputs (new hires, terminations, bonuses, etc.).
2. Payroll Calculation: Use payroll software to generate payroll reports.
3. HR Review: HR team reviews and approves payroll data.
4. Salary Transfer: Generate WPS-compatible files and initiate bank transfers.

💡 Pro Tip: Partner with an EOR like Globaine to simplify compliance with WPS requirements.

5. End-of-Service Gratuity (EOSG) Calculation

EOSG is a statutory payment made to expatriate employees at the end of their employment contract.

Calculation Formula:

• Gratuity per Year = (Basic Salary ÷ 30) × 21

Example:

• Basic Wage: QAR 10,000
• Gratuity per Year: (10,000 ÷ 30) × 21 = QAR 7,000
• Total for 5 Years: 7,000 × 5 = QAR 35,000

💡 Pro Tip: Automating EOSG calculations reduces errors and ensures timely payments.

6. Should You Outsource Payroll in Qatar?

Outsourcing payroll to EOR providers like Globaine can simplify payroll management and ensure compliance with local labor laws.

Benefits of Payroll Outsourcing:

• Compliance: Ensure adherence to GRSIA, WPS, and Qatar Labour Law.
• Accuracy: Minimize miscalculations and errors.
• Time-Saving: Free up HR resources for strategic initiatives.
• Data Security: Protect sensitive employee information.

💡 Pro Tip: Partnering with Globaine ensures hassle-free payroll management and compliance.

How Globaine EOR Qatar Can Help

Globaine EOR offers end-to-end payroll and compliance solutions, ensuring smooth and efficient payroll operations.

Our Services Include:

• Payroll Compliance: Ensure adherence to GRSIA, WPS, and EOSG regulations.
• Accurate Payroll Calculations: Handle gross-to-net, deductions, and overtime payments.
• WPS Compliance: Ensure timely and secure employee salary transfers.
• Leave Management: Track and administer employee leave records seamlessly.