1. Administering Payroll for Qatar
  2. Social Insurance Calculation for Qatar

Social Insurance Calculation for Qatar

Social insurance is applicable to all GCC citizens who work in Qatar and are paid there.

This contribution isnormally paid both by the employer and the employee, but there are some exceptions to this behavior that can be defined at the person social insurance calculation card level.

SI Calculation for Private Sector Employees

  • The amount of the contributory salary can be overridden at the person level.
  • If no override is present, then the country-specific balance Employee Private Sector Contributory Salary Base can be used to calculate the amount.
  • If balances aren't fed, you can define a formula used to calculate the contributory salary at the legal employer level.
    Note: For Qatar, after checking override, reference formula is checked. Contributory salary balances aren't available.
  • If none of the above are defined, the contributory salary uses the value of earnings elements that are subject to social insurance. These elements are identified through secondary classification and feed the balance Subject to Social Insurance.
  • The contributory salary is set once a year in the first month of payroll processing for the employee (when a new hire) or in the first month of the year (January). If there is a need to correct the contributory salary that has already been set, you can use the Social Insurance Contributory Salary Adjustment component of the Employee Social Insurance Details calculation card. The contributory salary will be modified in the next, normal, payroll run.
  • The contributory salary may have a monthly minimum value and a monthly ceiling. This means that if the monthly social insurance income is lower than the minimum value, contributions are calculated on the minimum value. If the monthly social security income exceeds the monthly ceiling, contributions are due just on the part up to the ceiling. For Qatar, there are no minimum contributory salary and maximum contributory salaries defined.
  • The employee contribution is 5% and employer contribution is 10%. But for UAE citizens, if the exception type is Employee pays both contributions, then the system adds a private sector subsidy in the Employer contribution (10% + 5% =15%).

If the employee’s payroll relationship is terminated before last day of the month, no contribution is deducted for all citizens except Bahraini. If termination date is end of the month the full contribution is deducted.

For Bahraini citizens, if the employee’s payroll relationship terminated is on or before 15th of the month then no contribution is deducted, else social insurance contribution is deducted.

Employer rates applicable for both Private and Government sectors from 1/1/2016 are

Legislation Government Sector Rate % Private Sector Rate %
QA 10 10
AE 10 10
SA 9 9
KW 10 10
BH 10 9
OM 10 9.5

Employer rates for Omani citizens working in the private sector from 7/1/2020 is 10.5%.

Employee rates for Omani citizens working in the private sector from 7/1/2020 is 7%.

Employer rates for Bahraini citizens working in the private sector from 5/1/2022 is 11%.

Employee rates for Bahraini citizens working in the private sector from 1/1/2023 is 7%.

Employer rates for Bahraini citizens working in the private sector from 1/1/2023 is 12%.

Employee rates for Bahraini citizens working in the government sector from 5/1/2022 is 6%.

Employee rates for Bahraini citizens working in the government sector from 1/1/2023 is 7%.

Employer rates for Bahraini citizens working in the government sector from 5/1/2022 is 17%

Employee Rates applicable for Private and Government sectors from 1/1/2016 are

Legislation Governmanet Sector Rate % Private Sector Rate %
QA 5 5
AE 10 10
SA 9 9
KW 11 11
BH 14 6
OM 7 6.5

Employer and Employee Rates for Qatar citizens working in Qatar Private and Government sector from 1/3/2023

QA Legislation Government Sector Private Sector
Employer Rate 14 14
Employee Rate 7 7

Maximum salary limit for QA citizens working in the government or private sector from 1/3/2023 is 100000. Maximum salry for UAE citizens working in the QA government sector from 1/1/2022 is 300000.

SI Calculation for Government Sector and Qatari Private Sector

  • The amount of the contributory salary can be overridden at the person level.
  • If no override is present, then the country-specific balance Employee Government Sector Contributory Salary Base (GCC) canbe used to calculate the amount.
    Note: For Qatar, after checking override, Employee Social Insurance Maximum Salary is checked. This balance can be initialized on person/assignment level with a fixed amount for employees who choose the SI calculation based on the salary higherthan 100,000 Riyals (employees whose monthly contributory salary exceed 100,000 Riyals before April 19th, 2022). This is effective from 1/3/2023.
  • If balances aren't fed, you can define a formula used to calculate the contributory salary at the legal employer level.
  • If none of the above are defined, the contributory salary uses the value of earnings elements that are subject to social insurance. These elements are identified through secondary classification and feed the balance Subject to Social Insurance.

    Housing Allowance amount limit is 6000 QAR if the contributory salary is based on Subject to Social Insurance Balance. Qatar Housing Allowance balance must be fed with the Housing Allowance element.

  • Contributory salary is calculated for each month of the payroll processing; hence it can vary each month.
  • For Qatari citizens, contributory salary will be used to calculate the employee and employer contributions as there are no maximum and minimum salary range.