One of the challenges of establishing your subsidiary in Qatar is managing your workforce. You need to offer compliant contracts and also provide Qatar compensation benefits as per the law.
In this regard, if you want to ensure success, you need to know how to design a benefits management package that attracts and retains employees.
However, it is important to do it according to the regulations and make it competitive, compared to what other companies in your sector or industry are offering.
If you do not know where to start regarding benefits and compensation, here at Connect Resources we can provide the assistance you need. Our Qatar compensation benefits outsourcing service will solve all your needs.
What are employee benefits?
Before starting to develop your Qatar compensation benefits plan, it is important to be clear about what benefits are.
Employee benefits are the additional perks you offer to your employees, and they can be financial or non-financial. These have to be mentioned in the employment contract. And, they are a way of showing gratitude to your workforce.
Some of the most common benefits can be health insurance, vacations, overtime, and more. It is important to offer great benefits since this can improve your employees’ productivity and motivation.
Furthermore, since you are expanding to a foreign country, you need to meet the local law regarding statutory benefits. Also, you need to consider what kind of benefits are best for your workforce regarding their needs.
Compensation Laws in Qatar
To provide benefits to your employees, you have to follow Qatar compensation laws. Here we have some of the most important aspects of it.
- Qatar’s current minimum national wage is 1,000 riyals. However, this is a recent regulation that was outlined in 2017. The minimum wage should be paid in Qatar’s official currency. But, the employer can use another currency if they create an agreement following the Government Financial System.
- The average salary in Qatar is 10,761 riyals.
- Annual and monthly employees should receive their payments every month.
- The salary has to be deposited into the employee’s bank account
- Foreign and local employees should receive employee benefits
Qatar Guaranteed Benefits
When it comes to Qatar compensation, employers have to offer guaranteed benefits. This is to ensure compliance with united regulations. Here is what you need to consider:
- Employees have to get varying time off on the four holidays celebrated in Qatar.
- Employees have to receive three working days off during holidays.
- When an employee has worked for the company for one continuous year, he or she has to get three weeks of paid leave.
- If the employee has worked five continuous years for the company, he or she has to receive four weeks of paid leave.
- Generally, employers provide a round-trip ticket to employees to their home country for their vacations. It is important to state in the contract if the ticket is for the employee only or the whole family.
- Muslim employees have the right to request an unpaid pilgrimage leave that could be up to two weeks. However, during their employment, they are only entitled to take this leave once.
- Employees also should receive 14 days of paid leave, with 100% compensation. If the employee needs to be on sick leave for more time, the days following the first 14 should be paid with a 50% deduction.
- Female employees can request maternity leave. They are entitled to 50 days. However, they can request a 60-day leave with the submission of a medical certificate. But, this is only for employees that have worked for the company for at least a year.
Benefits Management in Qatar
Having outstanding management of your employee compensation and benefits is your goal. You have to provide additional benefits that make your package attractive, such as follows:
- Health and life insurance, since for longevity these factors are important.
- Housing allowance.
- Transportation allowance.
- Education allowance.
Is up to you to determine which kind of benefits may be attractive for the workers in your industry. It is advisable to negotiate a total compensation package so you can determine which allowances are taxable or not.
Restrictions related to Compensation and Benefits
Establishing a subsidiary plays a crucial role when it comes to offering benefits and compensation. It is the same with corporate social responsibility.
Therefore, if you want to expand to Qatar, you need to incorporate a company first, so you can develop a great benefits package. This way you can start hiring employees and offer them a great package.
However, it can take months to establish a company, in this regard, you can use an EOR like Connect Resources. This will help you speed up the process and avoid restrictions that are imposed on foreign companies.
Employee Benefits Planning in Qatar
When you want to hire new employees, whether foreign or local, you need to offer them a great benefits plan.
In the case of leadership news careers and experienced workers, they want to be motivated to work for you. And you can achieve this by offering great packages and compensation.
First of all, you need to learn about the directors leadership news and all the regulations surrounding benefits. For this reason, you need to know how to give the right approach to your benefits planning. This will guarantee success.
Benefits package in Qatar
It is important to discuss how to develop a great plan with your HR team, this way you can provide the news to your board of directors.
If you want to encourage growth in Qatar as a company, you need to develop a well-though benefits package.
Once you have hired employees for your workforce, you have to boost the morale in the workplace, and you achieve this with a great benefits package.
It is proven that when employees see that the employer values their contribution by offering great benefits, they will put in their best performance to ensure the success of your business. Also, they are more likely to stay in the long term since the benefits package is attractive for them.
Some of the benefits you can offer are the following:
- Medical insurance.
- Allowances: transportation, housing, etc.
- Holiday bonuses.
In addition, you can consider the following supplemental benefits:
- Dental benefits.
- Company cars.
- Childcare benefits.
- Tuition benefits.
- Retirement savings.
Qatar provisions regarding benefits and compliance
Keep in mind that you must offer great benefits to your employees, as a business internationally lead company. This will help you stay more competitive in the market. However, you must offer the benefits that the Qatar law states. These are:
- Paid annual leave.
- Paid sick leave.
- Qatari nationals should receive pension contributions.
Connect Resources as an internationally lead source of outsourcing can help you comply with the provisions. This way you have nothing to worry about.
How to design the Qatar employee benefits plan
Once you know everything about mandatory and supplementary Qatar employee benefits, you have to know how to develop your employee benefits plan.
By giving it the right approach you can obtain a great result. For this reason, you should follow the next steps:
Set a budget:
Although benefits are good for your workforce, they still represent a cost for your business. For this reason, you have to set a budget so you do not exceed it. It is advisable to examine your financial capabilities, so you can see how much you can spend on your employees’ benefits.
Check the labor market:
To develop your benefits package, you have to first learn about the benefits other companies are offering. This will help you remain competitive, and also you will be able to attract top talent.
You need to know which benefits are most common, so you can offer your plan according to the market standards.
Choose the benefits:
You may end up with a list of possible benefits you may offer to your potential employees. In this regard, you have to choose first those that are following the provisions of the law.
Second, you have to choose those that reflect the market. But, make it by your budget. Lastly, if you can, offer supplementary benefits that can make you an attractive employer.
Creating a budget for the cost of the benefits
Since creating a budget is a crucial part of developing your Qatar compensation benefits plan, you need to know how to calculate it.
First of all, you should know that every employer pays a different price for a determinate set of benefits. Therefore, having an average cost will not be helpful. You need to consider additional factors such as industry, location, and company size.
In this regard, you could create your budget based on your revenue. Thus, you have to set a percentage that will reflect how much you will spend on benefits.
This way, you can change your percentage as your revenue changes. Similarly, if your company grows, you can scale up your benefits plan and make your company even more competitive.
Calculating your Qatar compensation benefits will vary depending on the plan you have in mind. For example, if you want to offer an end-of-year bonus, you have to determine the amount you want to spend, and then you can divide it among the number of employees your company has.
The labor law is very helpful in instructing how to calculate benefits. However, it is not an easy task, since there are some benefits, such as pension contributions, that may be challenging to calculate.
For this reason, it is important to have a well-versed team so you can stay in compliance when you calculate your benefits.
How to calculate employee benefits taxes in Qatar
As a foreign employer, you need to know how Qatar compensation benefits are taxed. Here is what you need to know:
- Foreign individuals do not have to pay personal income tax.
- Companies in activities should pay mandatory taxes as stated in the Companies Tax Law.
- Employees’ salaries and associated earnings are not subject to any type of tax.
As you can see, Qatar is a highly attractive destination for expats since they do not have to pay taxes.
Health benefits in Qatar
According to the law, it is not mandatory to offer medical insurance as part of Qatar compensation benefits. However, you may decide to do it since this is a very attractive benefit for candidates.
Individuals looking for a job will prefer your company if you offer health benefits since many companies do not do it.
Why Choose Us
Connect Resources can be your best partner that will help you solve all of your needs regarding Qatar compensation benefits. We can help you develop a successful plan and ensure outstanding management of your employees’ benefits.
The companies we partner with can offer a great benefits package to their workforce thanks to our assistance. Contact us and request a proposal or solve any of your queries with the help of one of our representatives.