Retirement and Pension Plans in Qatar for Qatari and Non-Qatari Employees

Retirement in Qatar: A Legal Guide for Expatriates and Locals

Qatar has established comprehensive laws and guidelines to manage the retirement and pension benefits for both Qatari and Non-Qatari employees. These regulations are primarily governed by the Qatar Retirement and Pension Law (Law No. 24 of 2002) for Qatari citizens, and specific provisions under the Qatar Labor Law for Non-Qatari employees.
 

Retirement and Pension Rights for Qatari Nationals
Under the Qatar Pension and Retirement Law, Qatari nationals are eligible for pension benefits upon reaching the age of retirement, which is generally set at 60 years. However, individuals may apply for early retirement at the age of 50, provided they have completed at least 15 years of service.

Eligibility Criteria:

• Qatari nationals are eligible for pension benefits under Law No. 24 of 2002 if they have been employed by the government or in a private sector company.
• The pension is calculated based on the employee's final salary and the years of service. Typically, employees are entitled to a percentage of their salary as a pension for each year of service.
• In cases of disability or death, survivors may also receive benefits, including pension payments to the spouse and children.

The Qatar Retirement and Pension Law provides various social security schemes aimed at providing financial stability post-retirement for citizens, ensuring that they can maintain a decent standard of living after they leave the workforce.
 

Retirement Plans for Non-Qatari Employees
Unlike Qatari nationals, Non-Qatari employees do not have access to the Qatar Retirement and Pension Law. As a result, they are generally not entitled to the state pension system. However, many companies in Qatar offer alternative retirement benefits or savings plans, which vary according to the terms of employment.

Non-Qatari employees typically rely on End-of-Service Benefits (ESB), as outlined under the Qatar Labor Law. The ESB is a lump-sum payment that is paid to employees upon the termination of their employment contract, either through resignation, retirement, or other causes of termination.

End-of-Service Benefits for Non-Qataris:

• ESB is typically calculated based on the last drawn salary and the length of employment with the company.
• Non-Qatari employees are entitled to receive:
  • 3 weeks' salary for each of the first 5 years of service.
  • 1 month's salary for each year of service thereafter.
• In addition to the ESB, the employer is also required to contribute to a mandatory provident fund for Non-Qatari workers (if stipulated in their employment contract).

 

The New Retirement and Pension Plan (2022)
Qatar has recently announced a new retirement and pension scheme aimed at enhancing financial security for its workforce, as part of broader social reforms. This new pension plan extends eligibility to both Qatari nationals and Non-Qatari employees employed in the country under certain circumstances.

Key Highlights:

• The new plan involves the establishment of a national pension fund that will consolidate resources from both public and private sectors. It aims to provide a sustainable pension model that offers better returns for all contributors.
• Under the new pension plan, the government will co-contribute with private employers to fund workers' retirement.
• Non-Qatari employees will also be included in the scheme, with contributions made on their behalf, although the exact conditions and contributions may differ compared to those applicable to Qatari nationals.

This reform is seen as a major step forward, signaling Qatar's commitment to improving the social welfare system, ensuring a more inclusive retirement safety net for all workers, regardless of their nationality.

In conclusion, Qatar's approach to retirement and pension plans reflects a growing focus on worker welfare, offering robust systems for Qatari nationals, while Non-Qatari employees rely largely on contractual agreements and end-of-service benefits. With the introduction of a new national pension scheme in 2022, Qatar is moving toward a more comprehensive and inclusive system that may benefit both Qatari and Non-Qatari workers in the future.

 

Sources:
Hukoomi
Al Meezan
Clyde & Co