Qatari Social Insurance Law Implementing Regulations to significantly impact employment relations

The regulations, issued under Qatar Cabinet Decision No. 3/2025, promulgated by Qatar Law No. 1/2022, outline procedures and requirements for the registration, calculation of contributions, payment systems, and settlement of pensions.

These changes include registration and data updates. The regulations mandate that employers update and complete the data and documents of insured employees who are previously registered under Qatar Law No. 24 of 2002 on Retirement and Pensions. Newly established entities must register their Qatari employees within 30 days of employment or acquisition of Qatari nationality. Failure to register can result in penalties and fines, as well as potential legal action against the entity.

Under the new regulations, contributions are calculated based on the contributable salary received by the insured, with specific limits and conditions. For example, the maximum contributable salary is set at 100,000 riyals per month (approximately US $26,660), and housing allowances are capped at 6,000 (approximately US$ 1,600) riyals per month.

The regulations introduce an instalment payment system for amounts due to the General Retirement and Social Insurance Authority (GRSIA), allowing insured employees and employers to settle contributions in monthly instalments over a period not exceeding five years. The update also details procedures for settling and paying pensions, including eligibility requirements and timelines. Pensions become due from the day following the termination of service due to death, disability, attainment of retirement age, or resignation to care for children with disabilities.

An excess service bonus is paid in a single payment at the time the pension becomes payable or upon termination of service due to death, under the new regulations. This bonus is calculated based on the pensionable salary for each year exceeding thirty years of actual service. The regulations further allow for advances to pensioners, guaranteed by their pension, within the limits allowed by the approved budget. The advance amount can be up to five times the pension, with a maximum of 300,000 riyals, and is settled through monthly instalments over a period not exceeding five years.

Employers are required to set up special social insurance files for each insured employee and appoint a communication officer to implement and follow up on all matters related to the application of the provisions of the law. When an employee transfers from one employer to another, the new employer must ensure the continuation of the employee’s social insurance coverage without interruption. This includes updating the employees’ registration details and ensuring that contributions are transferred accordingly.

Article 18 of the regulations mandates that employers must register their employees within 30 days of employment. If employees are not registered for the entire period of their employment, the employer is liable for any unpaid contributions and may face penalties. The employer must also provide retroactive contributions for the unregistered period. Additionally, Articles 24 and 25 address the secondment of employees. During secondment, the original employer remains responsible for the employee's social insurance contributions unless an agreement is made with the seconding entity. The seconded employee's rights and benefits under the social insurance system must be maintained throughout the secondment period.

The regulations also include general provisions for digital transformation, correspondence and notifications, and cooperation with government agencies to provide necessary information and data.

It is important for both employers and employees to be aware of and understand the provisions above, with a range of changes likely to impact businesses across Qatar.

Co-written by Sarah Khasawneh of Pinsent Masons.