Qatar is a country that welcomes investors, entrepreneurs, and professionals looking to expand their opportunities. Therefore, it is considered an expat hub.
In fact, companies in Qatar employ workers from abroad across several industries and sectors. Thus, as an employer, you need to know how to stay in compliance when it comes to the minimum wage in Qatar.
You need to provide compliant employment contracts according to the Qatar labor law salary 2021. Otherwise, you may face penalties and detrimental consequences to your business.
Recently, the Qatar minimum wage was imposed based on the new regulations. In this regard, both employees and employers have many doubts regarding the minimum wage.
Here at Connect Resources, we can help you clarify any uncertainties you may have regarding Qatar salary. Our goal is to provide you with outstanding solutions so you can take your business to the top.
Qatar’s new minimum wage
Before 2017, there was no minimum wage Qatar. The country set a minimum wage in 2017 by establishing new provisions.
The minimum salary in Qatar is the lowest amount you can pay to a worker. It is important to understand this since if you offer a contract to an employee with a basic salary below what is established you can face non-compliance issues.
On August 2021, Qatar established the minimum wage law. It was introduced to ensure employees get to improve their living standards. Also, it can encourage having a skilled workforce, since it will motivate workers to get a job in Qatar and deliver their best performance.
Qatar’s non-discriminatory minimum wage
On March 2021, new Qatar’s non-discriminatory minimum wage came into force, as part of the Qatar labor law 2020.
Here are the most important highlights of this legislation:
- The minimum wage applies to all workers of all nationalities, regardless of the sector where they work. Thus, it also includes domestic workers.
- This new law is the first non-discriminatory minimum wage law in the region.
- The country is making new reforms in its labor laws, and this one is part of its reforms.
- The minimum wage in Qatar was established at 1000 QAR (Qatari Riyals)
- Private workers will benefit from this new law.
- The Qatari Government will be instructing labor inspectors to detect any violations of this law
Provisions about minimum wage in Qatar
According to the Qatar labor law 2021, employers are legally obliged to pay their workers at least 1,000 QAR per month.
This is established in Law No. 17 of 2020, and it applies to all kinds of workers. Furthermore, employers have to provide food and accommodation allowances to employees, since this is also stated in the law.
Nevertheless, if the employer provides food or accommodation, it is not required to add these allowances to the basic salary.
What does this mean? The employer can either pay the employees an additional amount so they can arrange their own accommodation and food, or provide food and/or accommodation to the employees.
Therefore, as an employer, there are three different rates for the minimum wage in Qatar:
- Basic wage of 1,000 QAR if the employer provides food and accommodation
- Basic wage of 1,000 QAR plus 300 QAR if the employer provides accommodation but it does not provide food. Thus, the employee should receive at least 1,300 QAR per month.
- 1,000 QAR plus 500 QAR for accommodation plus 300 QAR for food if the employer does not provide food or accommodation. Thus, the employee should receive at least 1,800 QAR per month.
Average salaries in Qatar
According to the Qatar new labor law 2021, the minimum salary in the country is 1,000 QAR, plus allowances if applicable. However, depending on the sector where he or she works, the employee can receive a higher salary.
Thus, the average salary in Qatar is 10,000 QAR, however, if the employee is in a managerial position, he or she may earn more than 20,000 QAR. Therefore, the salary depends on the position, industry, and more.
Non-compliance penalty
Employers that do not comply with the Qatar labor law 2021 about the minimum salary may face a penalty.
Since the workers’ wages are covered by the Wage Protection System (WPS), the Authority can check whenever an employee receives less than the minimum wage. This way, labor inspectors can monitor wage payment practices.
So, if they check and determine that the employees are not receiving the basic salary, or if the employer does not meet the accommodation standards according to the legal requirements, the employee may have to pay a non-compliance fine of QAR 2,000 to QAR 6,000.for each worker.
It is important to be very careful with this matter, since the employer can also face imprisonment for a maximum of one month, depending on the instance.
Furthermore, companies that are found non-compliant will not receive government services until they have solved the issue and have paid their workers their due wages.
In relation to domestic workers, the Law of Domestic Workers states that the employer may have to pay a fine of 10,000 QAR if he or she does not pay the minimum wage to his or her employee.
Employment contracts and minimum wage
As soon as the new Qatar new labor law 2021 came into force, it required employers to pay at least the minimum wage to their employees. However, there were two cases that had to be addressed:
- If the employee was earning less than the minimum wage, although the contract stated that amount, the law requires that the employee had to receive the new minimum wage, but it was not required to sign a new contract.
- If the employee was earning above the minimum wage, the employer did not have to adjust the pay or allowances. The employee could still earn the same without any worries
However, since the new law came into force more than a year ago, employers are required to provide a compliant contract to their new employees. The employment contract has to state the salary and it has to be at least 1,000 QAR.
Also, reducing the salary on employee contracts is a breach of the law. Employers cannot use the new salary law as a justification to pay less to employees.
Why Choose Us
Here at Connect Resources, we understand how challenging can be to understand the Qatar labor law basic salary and Qatar government jobs 2022. For this reason, we provide a team of specialists that will help you draft compliant employment contracts and much more.
You have nothing to worry about since we will be backing your operations. Contact us now to receive a comprehensive solution and a tailored service to solve your current needs. Have a solid workforce and compliant business with our help.
