State Pension - There is a mandatory state-owned pension plan which is only for Qatari nationals working in the public sector or the private sector who are subject to Law No. 1 of 2022 (“Social Securities Law”) and Law No. 15 of 2016 (“Human Resources Law”). This includes Qatari employees of (i) ministries and other government bodies, and public authorities and institutions and (ii) employers in the private sector which are any natural or juridical person. This state pension is funded by employer (14%) and employee (7%) contributions. Subject to the Council of Ministers’ approval, the State’s treasury may bear a percentage of the employer’s contribution for private sector employers, in accordance with controls it determines.

Additional Plans - Employees are entitled to an end of service gratuity (i.e., 3 weeks basic salary for each year of service). There may be other voluntary private DB or DC plans for employees, although these are much rarer. Nevertheless, these plans must not provide employees with less than the mandatory end of service gratuity.

Note that employees working in the private sector in the Qatar Financial Centre (QFC) are not required by law to have access to a private pension plan or end of service gratuity. However, it should be noted that the mainland Social Securities Law will apply to Qatari national employees employed by QFC private companies if a resolution issued by the Council of Ministers subjects such companies to the said law and the companies are notified by the Council in writing of that determination. Other free zones apply Law No. 14 of 2004 which is the Qatar mainland Labor Law, hence employees who are working in companies registered in such free zones are entitled to an end of service gratuity.

If the transaction results in a change of employer for an employee who is entitled to an end of service gratuity, then the new employer will be liable for payment of that end of service gratuity.

Changes and/or interruptions of private pension plans need to be analysed on a case-by-case basis. If the net benefit accruing to the employee under the said system is less than the end of service gratuity, the employer must pay to the employee the end of service gratuity and return to the employee the sum contributed to the said plan.