Whereas currently, only employers in the public government sector must contribute to their Qatari citizen employees’ social security funds, according to a new law, private sector employers hiring Qatari citizens (and Gulf Cooperation Council nationals) will also be subject to this rule starting January 3, 2023. This expanded law has been enacted to encourage Qatari citizens to find employment in the private sector and to minimize the negative economic impact of early retirement. Additionally, as of January 3, 2023, monthly contribution rates to such funds will increase from 15% to 21% of an employee’s basic salary or wage, with a maximum cap of QAR 100,000; employers will need to contribute 14%, while employees will need to contribute 7%, with some exceptions. Employers who fail to comply with the new rules could face imprisonment of up six months and fines up to QAR 30,000. Fragomen can assist affected employers with review of their required contributions, and if needed, revision of internal policies.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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