The document provides an overview of payroll processing in Qatar, including common questions about salary payments, components, minimum wage, overtime calculation, leave policies, and more. Key details include that salaries must be paid at least monthly, there are no statutory pay components, overtime is paid at 125-150% of normal wages, annual leave is 3-4 weeks, and gratuity is accrued at 21 days per year of service. Outsourcing payroll is recommended to ensure compliance and free up employers' time.

1. Qatar Payroll Process: An Overview
Processing Payroll requires time, dedication, and subject knowledge; even a
misconception can cause great loss. Ensuring all the employees within an
organization get paid the correct amount at the right time with deductions/
allowances if any is mandatory. Here we have covered a set of frequently
asked questions that pertain to payroll processing in Qatar.
1. What is the frequency of making salary payments to employees in
Qatar?
The law in Article 66 states that the wages of the workers employed on
annual or monthly wages shall be paid at least once in every month.
The wages of all other workers shall be paid once at least every two
weeks.
2. What are the statutory pay components included in employee salary?
The Qatar labor law does not define the components that should make
up an employee’s salary; there are no defined statutory components.
3. Which are the common pay components that are normally payable to
employees?
Fixed components may include Basic salary, House rent allowance,
transport allowance and other allowances. The variable components
may include Overtime, Sales commission, Bonus, Incentives,
Relocation allowances, Mobile allowances etc.
4. What is the minimum salary payable in Qatar?
Law No. 17 sets the minimum wage at QAR 1,000 per month for all
workers. Companies should also provide food and accommodation to its
workers or an allowance of QAR 500 per month for accommodation and

2. QAR 300 per month for food. Please refer to our article on Qatar
wages.
5. What is the maximum number of working hours in Qatar?
The number of maximum working hours is eight hours a day and forty-
four hours a week. During the month of Ramadan, it is six hours per day
and thirty-six hours per week.
6. How is overtime calculated?
Overtime is any extra hours worked by an employee beyond the normal
working hours. Article 74 states that the employee shall be entitled to an
additional pay equal to his normal wage plus an extra of at least 25% for
extra hours beyond normal working hours. In case, if the overtime falls
between 9 p.m. to 4 a.m. on a working day, the employee will be entitled
to his normal wages plus an extra 50% thereof. According to Article 75,
if an employee works on a designated rest day, he is entitled to normal
wages plus an increase of not less than 150%. Overtime hours cannot
exceed a maximum of two hours a day.
7. How is Qatar gratuity accrued?
Qatar gratuity is accrued against the last drawn basic salary and
calculated at twenty-one days’ pay for every year of the service if the
service period exceeds one year.
8. When is gratuity paid to an employee?
According to Article 54 of the Qatar labor law, the employee who has
completed one year or more in the continuous service, is entitled to the
end of service remuneration at the end of his service. For a
comprehensive understanding of Qatar gratuity accrual and settlement,
please refer to our article on QATAR gratuity policy and settlement.

3. 9. What are the statutory deductions that are made to employees in the
Qatar?
In the Qatar, payroll is not subject to income tax, and hence there are
no mandated tax deductions.
10. What is Qatar WPS?
Qatar Wage Protection System (WPS) is an electronic salary transfer
system that allows institutions and organizations in the private sector to
pay their employees via banks, exchange bureaus and financial
institutions approved by the Qatar Central Bank. WPS allows the
Ministry of Administrative Development, labor and Social Affairs
(MADLSA) to maintain a database that records wage payments in the
private sector, and guarantees payments are made in full and on time.
11. What is the leave policy defined under the labor law?
A. Annual Leave
A worker who has completed one continuous year in the service of the
employer shall be entitled to an annual leave with the pay provided. This
leave shall not be less than three weeks for the worker whose service is
less than five years and four weeks for the worker whose service is more
than five years.
B. Sick leave
According to Article 82, a worker who has fulfilled first three months of
his/her contract is eligible for Sick leaves and will be granted 12 weeks
in the following rate:
1. The first 2 weeks: with full pay
2. The next 4 weeks with half pay
3. Next 6 weeks: Without pay
As mentioned in Article ,82 the sick leave will be granted for an
employee only after completing three months of service with the
company.

4. C. Maternity leave
A female worker shall be entitled to maternity leave with full pay for a
period of fifty days, including both pre-and post-natal periods provided
that the continuous period of service with the employer exceeds one
year. The period after delivery should not be less than thirty-five days. If
the period after delivery is less than thirty-five days, the employee can
be granted a complementary leave from her annual leave. If there are
no annual leaves available, the employee can be granted leave without
pay.
D. Hajj Leave
Hajj leave is taken by Muslims to go perform pilgrimage. Article 83
states that ‘Each worker shall be entitled, once in the course of entire
service, to special leave without pay for performing pilgrimage’. Hajj
leaves shall not exceed two weeks and is granted once in the entire
employment tenure.
Please read our article on QATAR leave policy here for a
comprehensive understanding.
12. Which are the national holidays in Qatar?
According to Article 78, the official paid national holidays are as follows.
o Three days for Eid El Fitr
o Three days for Eid Al Adha
o One day for Independence Day
o National Sports day.
13. Is employee Medical Insurance mandatory in Qatar?
It is mandatory that an employer provide medical insurance to the
employee during the duration of employment. Some companies are
extending this coverage to employee’s dependents even though this is
not mandatory.

5. 14. Which are the currencies that can be used in making salary
payments in Qatar?
The only accepted currency used in making salary payments is the
country’s national currency which is the Qatari riyal.
15. Is bonus or incentives payment mandatory in Qatar?
Bonus and incentives payments are not mandatory in Qatar. Many
companies in the Qatar have bonus or incentive schemes implemented
to keep employee motivation and the structures vary from one company
to the other based on their policy.
16. What are the items included in End of Service Benefits
calculation in Qatar?
The employee is entitled to the following end of service benefits.
0. Gratuity
1. Repatriation ticket if applicable
2. Notice period pay if applicable
3. Any unutilized leave (Vacation) pay
4. Any other outstanding payment or deduction
17. Summary of Employee Benefits in Qatar:
0. Salary
1. Gratuity
2. Annual Leave
3. Sick leave
4. Maternity Leave
5. Medical Insurance
6. Overtime pay if applicable.
Business owners may not have the time for payroll calculation as they have
numerous other things to take care of. Outsourcing payroll functions will not
only free up the time of the owner but will also promise professional service.
Payroll Process in Qatar

6. The process of payroll is little complicated and time-consuming; hence it is
always recommended to outsource your company’s payroll function.
Outsourcing payroll will ensure the assistance of a team of trained payroll
professionals and it frees up the time of the organization, helping them focus
on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll
data is highly sensitive, and one should opt for a provider that can ensure high
levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your
payroll complexities through customized strategies. We take care of our
clients’ entire payroll cycle that includes preparation of payroll reports,
processing salary payment with WPS compliance, accrual management
including Gratuity, pension funds, an online portal for accessing payslips, and
many more. Our leadership team spends the necessary hours in every
project, ensuring our clients get refined consulting services to take your
business forward.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information,
HLB HAMT will not accept any liability arising out of errors or omissions.
Please note that this blog is not all-inclusive. Our guidance is designed only to
give general information on the issues/topics covered. It is subjected to
change and not intended to be a comprehensive summary of all laws which
may be applicable to your situation, treat exhaustively the subjects covered,
provide legal advice, or render a legal opinion.

7. Get Free Consultation
Qatar Payroll Process: An Overview
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
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