Payroll Accounting
Accurate solutions for organizing salaries, wages and end-of-service provisions, in line with Qatar’s Labour Law and the Wage Protection System.
Payroll
Correct salaries paid on time, sound accounting entries and full compliance with the Labour Law and the Wage Protection System.
We provide payroll preparation for companies and institutions of all sizes, a service closely tied to human resources management. The payroll accounting service at Bader Farhan Al-Ahmad Office for Accounting, Auditing & Consulting covers monthly and annual payroll preparation, delivered by a qualified team that designs and runs the service to suit each company.
Our payroll services help you organize your workforce matters and keep pay fair and work quality high. Setting salaries and wages is also one of the most important tasks when a company is founded: they are fixed costs you need to know to prepare the overall budget, and they are set according to job grade, qualifications, competence and years of experience, which in turn supports the company’s progress.
Payroll is just as important as any other part of a company’s accounting; it is one of the pillars of any organization’s finances, which is why many companies and establishments entrust it to accounting firms. We provide it alongside bookkeeping, through a team of professionally qualified experts who apply the required standards and regulations with a high degree of professionalism.
What we deliver
01
Monthly payroll
We calculate each employee’s basic wage, allowances, overtime and deductions, and issue an approved payroll and clear payslips.
02
Wage Protection System transfer file
We prepare the salary file in the format your bank requires, so each worker’s pay is transferred to their account through the system within the legal deadline.
03
End-of-service gratuity
We calculate each employee’s gratuity on the basis of the last basic wage and length of service, and build up the provision in the books every month.
04
Annual leave
We track each employee’s leave balance and calculate leave pay and provisions in line with the Labour Law and employment contracts.
05
Overtime
We calculate overtime pay at the rates set by the Labour Law, including the higher premium for work between 9 pm and 3 am for non-shift workers, based on approved attendance records.
06
Social insurance for Qatari staff
We calculate the contributions due to the General Retirement and Social Insurance Authority for Qatari employees, both the employee’s share and the employer’s share.
07
Final settlements
We prepare the end-of-service settlement: wages due, leave pay, gratuity and any amounts the employee owes the establishment.
08
Entries and reports
We book payroll and its provisions and report labor costs by department or project, while keeping employee data confidential.
Our monthly payroll cycle
01
Collect the inputs
Each month we receive attendance, leave, overtime, new hires, leavers and any pay or allowance changes from human resources.
02
Calculate and check
We calculate the payroll and check it against employment contracts and the previous month, explaining any differences.
03
Approval
We send the payroll, with a summary of its totals and changes from the previous month, to management for approval well before the payment date.
04
Transfer through the WPS
We prepare the transfer file for the bank so wages reach employees’ accounts within seven days of the due date.
05
Book and report
We book payroll and provisions in the accounts and issue payslips and labor cost reports.
Payroll in Qatar: what the law requires
Qatar’s Labour Law No. 14 of 2004 requires wages to be paid in Qatari riyals, at least once a month for monthly or annually paid workers, by transfer to the worker’s account with a financial institution in Qatar; the employer is discharged only by doing so. Under Minister of Labour Decision No. 4 of 2015 on the Wage Protection System, as amended by Decision No. 50 of 2026, the monthly wage falls due on the first day of each calendar month and must be transferred through the system within seven days of that date. Law No. 9 of 2026 toughened the penalty for breaching the wage payment rules to imprisonment of up to one year and a fine of QAR 2,000 to 10,000, or either penalty.
A worker with a full year of service or more is entitled to an end-of-service gratuity of at least three weeks’ wage for each year of service, based on the last basic wage. The law caps normal working hours at 48 a week (36 during Ramadan) and requires overtime to be paid at the basic wage plus a premium of at least 25%. Qatari employees in the private sector are covered by Social Insurance Law No. 1 of 2022: contributions are 21% of the contributory salary, 7% paid by the employee and 14% by the employer, due no later than the fifth of the following month.
Within the organization, payroll is usually prepared by:
- The organization's human resources managers
- The head of the finance department
- Staff working in financial management
- An external accounting firm, when all or part of the work is outsourced to it
FAQs about payroll and gratuity in Qatar
How is end-of-service gratuity calculated in Qatar?
Under Article 54 of Labour Law No. 14 of 2004, a worker who has completed a full year of service or more is entitled to an agreed gratuity of no less than three weeks’ wage for each year of service, with part-years counted pro rata. The last basic wage is used for the calculation, and the employer may deduct any amounts the worker owes. If the contract provides a higher gratuity, the contract applies.
What is the Wage Protection System (WPS) and who must use it?
It is a system applied by the Labour Inspection Department of the Ministry of Labour to make sure workers covered by the Labour Law are paid on time. Under Ministerial Decision No. 4 of 2015, as amended by Decision No. 50 of 2026, employers must transfer the wages of monthly or annually paid staff to their accounts with financial institutions in Qatar through the system within seven days of the due date, which is the first day of each calendar month. If an employer fails to comply, the Ministry may stop issuing new work permits or suspend the establishment’s transactions with it.
Is an employee who resigns entitled to end-of-service gratuity?
Yes, provided the employee has completed a full year of service or more: Article 54 links the gratuity to length of service, not to how the service ended. An employee loses it only in the cases of dismissal without notice and without gratuity listed in Article 61 of the Labour Law, such as submitting forged documents, disclosing the establishment’s secrets or being absent without a legitimate reason for more than seven consecutive days. The details depend on each case and contract.
Are salaries in Qatar subject to income tax?
No. The law promulgating Income Tax Law No. 24 of 2018 excludes salaries, wages, allowances and similar payments from income tax, so no tax is withheld from them. Employers must, however, pay social insurance contributions for their Qatari employees under Social Insurance Law No. 1 of 2022.
How much annual leave is an employee entitled to?
Under Article 79 of the Labour Law, a worker who has completed a full continuous year of service is entitled to paid annual leave of at least three weeks if service is under five years, and four weeks once it reaches five years or more. Part-years of service earn leave pro rata.
Will our employees' data stay confidential if we outsource payroll to you?
Yes. We treat payroll data as strictly confidential, limit access to the team assigned to your account, and handle it in line with Law No. 13 of 2016 on the Protection of Personal Data Privacy.
Need advice on payroll accounting?
Our team is here to help. Contact us now to discuss your company’s needs and receive a tailored proposal.