Hiring in Qatar through an Employer of Record (EOR)

Read on to discover a guide to employment laws, regulations, and Employer of Record (EOR) in Qatar.

Want to hire in Qatar? An EOR can help

Planning to expand your operations into Qatar? Employer of Record (EOR) services are important if you don’t want to establish a local entity. 

By partnering with an EOR, you gain a seamless pathway to the Qatari workforce. The EOR handles the complexities of employment, including onboarding, payroll management, and the administration of benefits and taxes, ensuring full compliance with local regulations. Meanwhile, you’ll maintain control of your employees’ day-to-day activities and business operations.

With an EOR taking care of these critical functions, you can sidestep the intricate details of local labor laws and focus your efforts on what truly drives your business forward.

How to hire in Qatar

Step 1: Choose between establishing an entity and using an EOR

When hiring in Qatar, you have two options: 1) To set up a local entity or 2) To use an EOR.

Setting up a local entity gives you more control but can be complicated. It involves registering your business, appointing directors, and handling local tax rules. This process can take weeks or months and could delay your hiring. Plus, you’ll be responsible for following all local employment laws, which can be risky.

Using an Employer of Record simplifies things. An EOR handles hiring, payroll, and compliance with Qatari laws, allowing you to onboard employees quickly without dealing with legal details.

If you plan to hire a large team and want a significant presence in Qatar, setting up a local entity might be necessary. For a faster and easier solution, an EOR is usually the better choice.

Step 2: Finding the right EOR

Selecting the right EOR is crucial. Choosing the wrong provider can result in compliance problems, unexpected expenses, and a poor experience for your new employees.

Here’s what you should consider:

• Legal compliance: Ensure the EOR has a thorough understanding of Qatar’s labor laws, worker protections, tax regulations, and local benefits. Ideally, look for a provider with experience in your industry.
• Customer service: Check if the EOR offers dedicated support and account managers. For example, Multiplier assigns a dedicated manager to each account and provides 24/5 support with real people (no bots!).
• Transparent pricing: Be wary of EORs with low initial costs that may hide additional fees or have unclear pricing. It’s important to understand all associated costs before you commit.
• Total cost of ownership: The cheapest option isn’t always the best. Sometimes a lower price can lead to more costs if the service isn’t up to standard. Ensure that you’re getting a quality EOR that fits your budget without compromising on service.

Step 3: Employing and onboarding in Qatar

Send over the contract

Once you’ve selected the right candidate and EOR, it’s time to prepare and send a locally compliant employment contract. An EOR can quickly generate contracts that adhere to Qatari labor laws, allowing you to customize terms such as job duties, working hours, salary, and termination conditions.

After finalizing the contract, your EOR will handle the secure transmission and collection of signatures.

Enhance compensation with competitive benefits

Looking to offer an attractive benefits package? Instead of navigating local vendors on your own, a reliable EOR can provide access to several locally managed benefit options. Additionally, the EOR can facilitate the distribution of necessary IT equipment to ensure your new hires are fully equipped from day one.

Get all your documentation ready

Next, you’ll need to gather your new employee’s tax and banking details. If you’re using an EOR, such as Multiplier, they will automatically collect this information to set up payroll. The EOR will manage all necessary documentation, streamlining the process and minimizing paperwork.

Onboarding in Qatar can seem challenging, but an EOR simplifies the process and makes it hassle-free.

Step 4: Run payroll for employees based in Qatar

Managing payroll for employees in Qatar can prove complex, especially if you have a multinational workforce.  Here is a breakdown of the key points to consider:

• No personal income tax: Qatar does not levy personal income tax on salaries, wages, or allowances for both Qatari nationals and expatriates.
• Social Security contributions: Employers are required to contribute to the Qatar pension fund, which supports employees’ retirement savings. This contribution is 10% of the employee’s salary for Qatari nationals.
• End-of-service benefits: The Qatar Labor Law mandates employers to pay an end-of-service benefit equal to three weeks’ base wages for each year of employment, provided the employee renders at least one year of service.
• Health insurance: Qatar introduced a mandatory health insurance program in 2013, which covers Qatari nationals and residents. Employers are required to cover the premiums for their expatriate employees.

Navigating these regulations can be challenging and time-consuming, especially for companies expanding into Qatar.

Using an EOR, like Multiplier, simplifies this process by ensuring that salary payments are accurate and on time while managing all local contributions and compliance.

With Multiplier’s global payroll solution, you can streamline payroll management for all your international employees from a single platform, avoiding the complexity of multiple local providers.