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Read NowOn 3 July 2022, Law No. 1 of 2022 (the “Social Security Law”) was published in Qatar Official Gazette. With the exception of certain provisions, the Social Security Law will come into an effect after 6 months of the publication date. With the Social Security Law coming into force, the previous law regulating social security and pension (Law no. 24 of 2002) has been repealed.
Pursuant to the Social Security Law, all Qatari nationals either working in the government or private sector shall be subject to the social security scheme contained in the Social Security Law, provided that they are at least 18 years old and that their employment is regular and permanent for a period of more than one year.
The Social Security Law provides that contributions shall be calculated on the basis of the contributory wage (basic salary plus the social and housing allowance) and shall be capped at 100,000 QAR (except for those who are already effectively enrolled with an amount exceeding 100,000 QAR).
The contribution shall be 21% of the contributory wage and should be paid as follows:
Unlike under the previous law, any housing allowance counts towards pension contribution along with any social allowance. The housing allowance should not exceed 6,000 QAR.. In case the employee is provided with accommodation in deference to receipt of a housing allowance, the housing allowance should be calculated as if the employee had received the housing allowance in cash.
The pension is payable if the employee’s service is terminated for any of the following reasons:
a. death;
b. disability as determined by the medical committee;
c. attainment of the retirement age, according to the age prescribed in the career regulations to which the individual is subject, of no less than sixty (60) years;
d. resignation;
e. dismissal under a disciplinary decision or based on a final judgment rendered against the employee in a crime involving breach of honour or honesty; or
f. termination of service.
Except in situations under a and b above, in order for the individual to be eligible for the pension, the contributory period should be at least 25 years including the period of actual service which should be 20 years and the individual’s age should be at least 50 years, If the employee does not meet the minimum years the same can be purchased as notional service subject to certain conditions being met.
The pension is to be adjusted as follows:
The pension (defined as the amount that is paid monthly to the pensioner or his beneficiaries) shall not be less than 15,000 QAR for government sector employees (except in some cases of termination of employment). The same amount is currently set for private sector employees as well.
There are no explicit provisions in the Social Security Law addressing the end of service gratuity. However, pursuant to the Labour Law (Law No. 14 of 2004) if employees are enrolled in a pension or other retirement scheme that provides greater benefits to the employees than the end of service gratuity are not eligible to receive the end of service gratuity as well. Similarly, the Social Security Law provides that eligible individuals are not entitled to benefit from more than one pension or other retirement scheme.
Al Tamimi and Company will be happy to assist employers adapt with the new system and to ensure that employers are compliant with the obligations of the Social Security Law.
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