The Major Influences of the Revised Social Security Law on Qatar’s Pension System

HLB Qatar Payroll Team

image

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 55 971 5959
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

    Schedule a Consultation







    Addressing pensions and retirement for Qatari nationals, the state of Qatar has unveiled its new retirement pension scheme and released a social security law. Employers in the private sector will also be subject to the new Social Insurance Law No. (1) of 2022, which intends to encourage people to remain in the labor force as much as they can. Except for a few clauses regarding employee registration and other formalities, Law is effective from January 2023.

    Main Modifications

    The introduction of the law brings in a number of significant modifications to Qatar’s existing social insurance system, including the following:

    • Social Contribution Expansion

      As per the present law, the General Retirement and Social Insurance Authority (GRSIA), which oversees Qatar’s social security system, exclusively offers retirement, disability, and survivor compensation to citizens of Qatar who are employed in the public sector.

      But, in accordance with the new law, all Qatari citizens working in the private sector who are 18 years of age or older and have contracts that are at least one year long are now covered, provided their employer offers higher rewards than GRSIA. Employers in the private sector must enroll unless they have a private pension plan with advantages that are superior to the social scheme and have at least one Qatari employee with a work contract lasting for at least one year.

    • Metrics of contributions are rising

      The proposed law raises the contribution rates for both employees and employers as follows and sets a QAR 100,000 monthly earnings threshold for employee contributions:

      • The employee’s contribution is 7%
      • The employer contribution of 14%

      The minimum needed service length to apply for a pension has climbed to twenty-five years, and the minimum retirement age will be fifty. Workers in the public sector who have contributed to the plan for thirty years or longer will additionally receive a gratuity from the pension fund when they reach retirement age.

    • Housing Allowance Contributions

      Both Housing Allowance and any Social Allowance are part of pension contribution amount.

    • Pension payments

      If the employee’s termination of employment occurs due to one of the following situations, the pension is claimable:

      • Demise;
      • A medical committee-determined impairment;
      • A person is bound to reach the age of retirement, which must be at least sixty (60) years old and is specified in the career norms that the person is bound;
      • Resigning;
      • Termination as a result of disciplinary action or a verdict against the employee for a criminal offence, a violation or breach of integrity; or
      • Service termination.

      The contribution period must be at least 25 years, including the time of actual service, which must be 20 years, for the person to be considered for the pension, with the exception of the circumstances listed in points I and II above mentioned.

    • There will be penalties applied

      Regarding failure to provide contributions and causing employees to bear the value of all or some payments, in breach of the law, employers may be fined heavily up to QAR 30,000 and sentenced to 6 months in jail.

    Further procedures for private businesses hiring Qataris

    • All private enterprises that employ Qataris must examine whatever pension plans they currently have in effect and assess if they offer Qatari employees benefits over the 21% allowed by the new law.
    • Employers must revise the employment contracts for their Qatari national employees to incorporate the clause given the state pension scheme and to guarantee that such Qatari national employees are not primarily related to both enrolments in the state pension scheme and the end of service gratuity, presuming that the new law delivers fairer benefits than the current pension scheme.
    • Employers must enroll both their Qatari national workers and themselves in the GRSIA.

    Bottom Line

    The law is also related to Qatar Vision 2030, which aspires to make Qatar into a modern society that can achieve sustainable development and guarantee a good quality of living for its citizens for many future generations to come.

    Although Qataris constitute only about 10% of the workforce in the private sector, the government’s intention to guarantee that 50% of the workforce is composed of Qatari citizens by 2030 will make the private sector more appealing with the enlargement of the social security program.

    How can HLB HAMT support?

    We are glad to assist companies in adhering to the Social Security Law in Qatar and make sure they are in compliance with the Social Security Law’s requirements. The leading payroll outsourcing firm in the GCC region, HLB HAMT, will efficiently and completely cater to your objectives.

     

    Would you like to rate us on Google?         

     

    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
    Mohammed L
    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
    Next Reviews
    js_loader

    Get in touch
    x
    x

    Share to:

    Copy link:

    Copied to clipboard Copy