Payroll in Qatar

The payroll process in Qatar

If you’re hiring in Qatar, payroll needs to be one of the first things you sort out. Whether you’re opening a local branch, supporting staff on the ground, or setting up a new venture, you’ll be expected to follow a clear set of rules. The payroll system is tightly regulated and closely monitored. Salaries must be paid on time, in the right format, and through the proper channels. There’s no room for shortcuts. Here’s what you need to know to stay on track from the start

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Getting set up to run payroll

Before you can run payroll in Qatar, you need to set up properly. That starts with having a legal presence in the country, usually through a limited liability company. You’ll also need a local bank account to handle salary payments and register with the Wage Protection System, known as WPS. This system tracks all payments to staff and is mandatory for all private sector employers. Many foreign-owned companies work with a local partner or outsource payroll to stay compliant and avoid delays. Once those pieces are in place, you’re ready to start processing salaries.

The WPS and salary payment rules

Once you’re set up, all salary payments must go through the Wage Protection System, or WPS. This is an electronic platform used to track and verify that employees are paid correctly and on time. It applies to all private sector companies and is monitored by the Ministry of Labour and the Qatar Central Bank.
Wages must be paid in Qatari Riyals, either monthly for full-time staff or every two weeks for those on other types of contracts. Payments are processed through a Salary Information File, or SIF, which follows a specific format and must include details like each employee’s ID, bank account, and pay amount.
The deadline for payment is seven days from the end of the pay period. Late or incorrect payments can trigger serious consequences. Companies may face fines, limits on new visas, or even temporary suspension of operations.

It is important to note that all payments are made through the client's bank account. Sovereign PPG provides all the payment information to the client for the client to upload the SIF and make any required payments.

Our payroll services adhere to local labour laws and compliance requirements that align with Wage Protection System (WPS) to assist clients with processing payroll correctly in Qatar.

What makes up a salary in Qatar?

When you calculate salaries in Qatar, there are a few key figures to include. The minimum wage is QAR 1,000, with an extra QAR 500 for housing and QAR 300 for food if these aren’t provided directly. These amounts form the base of many payroll calculations.

Overtime kicks in once an employee works more than the standard hours. The minimum overtime rate is 125 percent of the regular hourly wage, with higher rates for night work or rest days.

Bonuses are common in some sectors but not required. If paid, they should be listed clearly in the monthly breakdown.

End-of-service gratuity is also part of the picture. After one year of continuous work, employees earn 21 days of basic pay for each full year. This figure is based on the last drawn salary and must be included when planning final settlements.

Other employer obligations

Alongside salary, employers in Qatar need to cover a few other key areas. Medical insurance is mandatory for all staff, and some companies also extend this to dependents. Paid leave is set by law. Employees are entitled to annual leave, sick leave, and maternity leave if they meet the eligibility requirements.

The working week is capped at 48 hours across six days. During Ramadan, that drops to 36 hours for Muslim employees. It’s also important to keep full payroll records, including pay slips, leave balances, and deductions. These need to be stored for at least six years.

There are rules on deductions too. In most cases, no more than 50 percent of a salary can be withheld. For things like damage or unpaid loans, that limit drops to 10 percent unless a court approves otherwise.

Common mistakes and how to avoid them

There are a few common mistakes that catch employers out. One is missing the WPS payment deadline, which can trigger automatic penalties. Another is uploading payroll in the wrong format—every file must follow the Salary Information File structure exactly. Some companies also slip up by paying in foreign currency instead of riyals, which the system won’t accept. Overtime is another one to watch. If it’s not calculated correctly, it can lead to disputes. These are all easy to avoid with the right setup and local support in place from the start.

How can Sovereign PPG help?

Sovereign PPG understands the payroll and compliance requirements in Qatar inside out. Our team works closely with government bodies to keep every step on track, from company setup and WPS registration to ongoing payroll and PRO support.

If you need help with setting up or managing a business in Qatar, or any related support across Abu Dhabi, Dubai, the wider UAE, Oman or Saudi Arabia, give us a call on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at qatar@SovereignGroup.com, or complete the contact form below. We’ll be happy to assist.