Qatar creates first-class labour system with new minimum wage ahead 2022 World Cup

Oil-rich Gulf State of Qatar is rapidly transforming its workforce with far-reaching reforms that will create a first-class labour system in the country with a very motivating new minimum wage, especially as the nation prepares to host the FIFA World Cup in 2020.

This week, the Qatari government announced a nondiscriminatory minimum wage and the removal of the NoObjection Certificate (NOC) requirement to change jobs for all employees in all sectors including domestic workers, combined with the removal of the exit permit requirement earlier this year, according to a statement issued by the Government Communication Office (GCO) of the State of Qatar.

“The government has set the minimum wage for all private sector workers, including domestic workers at QAR 1,000 per month as a basic wage as well as QAR 500 per month allocated by the employer to for accommodation expenses and QAR 300 per month for food, unless the employer already provides adequate food or accommodation for the employee or domestic worker,” the statement said.

The minimum wage, according to the statement, will be one of the highest in the developing world, far exceeding the equivalent rates in the origin countries of almost all migrant workers in Qatar.

“It is the first minimum wage of its kind in the Middle East and will provide extra income to thousands of workers and their overseas dependents at a critically important time for families around the world. Because of the change, we expect billions of additional pounds to be remitted overseas in local currencies or re-invested in Qatar’s economy each year.

“This marks the beginning of a new era for Qatar’s labour market. The reforms take place against the backdrop of Qatar’s ongoing preparations to host the 2022 World Cup as a milestone moment of Qatar National Vision 2030. The World Cup aims to create a positive and lasting legacy by supporting Qatar’s efforts to transform the economy, accelerate reforms and provide inspiration to millions of people across our turbulent region,” the statement added.

It noted that the new law will come into force six months after its publication in the official gazette, stressing that in the meantime the government is working with local businesses to update their payroll systems and ensure all employment contracts are in line with the new legislation.

The minimum wage was decided following extensive consultations with a specialised national committee and consultations with the International Labour Organisation (ILO) foreign governments, NGOS, local businesses and workers committees. A newly formed minimum wage committee will be responsible for reviewing the minimum wage and making any necessary adjustments.