Qatar hikes salaries, pensions for state employees

Wednesday, 7 September 2011 11:51 AM

Qatar is the world's richest nation per-capita

Qatar will hand out significant salary, pension and benefits increases for its state and military employees, the state news agency said, in a move that will cost the Gulf Arab state at least an additional QR30bn ($8.24bn).

The decree by deputy Emir and heir to the Qatari throne Sheikh Tamim Bin Hamad Al Thani will boost basic salaries and social benefits for state civilian employees by 60 percent.

Military staff of officer rank will receive a 120 percent increase in basic salaries and benefits, according to the statement which was released late on Tuesday. Military persons of other ranks will see a 50 percent jump in basic salaries and benefits.

Qatar, the world's richest nation per-capita - more than $88,500 according to the IMF - and host of the 2022 soccer World Cup, has along with the UAE escaped unrest sweeping through the Arab world. Its copious natural gas reserves have quickly elevated it to the list of the world's richest nations.

The total salary increases will amount to QR10bn ($2.75 bln) per year, the statement said. It did not give a reason for the rises.

The decision also ordered a 60 percent pension increase for civilian retirees. Military personnel retirees of officer rank will see a 120 percent hike, with military individuals of other ranks eligible for 50 percent.

The Gulf state will incur QR10bn for the pension fund which will be paid in once and another QR10bn for retirees' subscriptions, the statement said.

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Posted by: aquilahmed Friday, 9 September 2011 10:18 AM[UAE] - malaysia

By offering such an increase in salaries, it is indirectly influencing inflation to rise. Now, prices of commodities, rents, etc.. will also increase , as there is high disposable income with nationals. This will affect largely on expats, which are 90% in total population. The nationals of around 900,000 can be easily absorbed in govet sector at all levels & leave alone private sector to flourish with expats. However, by increasing the salaries, govt is trying to block any kind of problems involving nationals & palying safe with monetary handouts. But till when? After 2022 world cup, qatar will become an desert with only tall buildings, hotels, villas all empty, as expats will vanish due to no new projects, just like currently happening in UAE. Anyway, hope govt can foresee this issue & develop thier nationals in more technically qualified rather than pamper them with huge money handouts.

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Posted by: Victoria Melbourne Thursday, 8 September 2011 9:44 PM[UAE] - Qatar

overpaid and underworked!

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Posted by: Qatar ex-pat Thursday, 8 September 2011 9:44 AM[UAE] - Qatar

I spoke to some Qataris who work in offices in the private sector. Apparently in many cases the private sector was paying better than the Government, which was why they were working in the private sector even though the working hours are longer. They told me the increase probably puts the wages about even but working for the Government is now more attractive because of the better hours and benefits.

Posted by: Mohammad Saturday, 1 October 2011 5:07 PM[UAE] - Qatar

i am sorry Mr. Qatar ex-pats, but i am afrain that your information is not 100% correct.
first of all if you would like to compare between Gov and Private sector local employees, you should compare them as per their work experience and educational level.
for example there is no any military officer gaining less than QR. 50,000/- a month after this new increment.

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Posted by: Billy Wednesday, 7 September 2011 4:58 PM[UAE] - UAE

And the next complaint will be that the private sector is not doing enough to assist Qatarisation. How can that be possible when the government positions have just been handed a 60% yes 60% salary increase. No private company can compete with that. I only hope the government is content to keep handing out jobs to its own nationals because there is no chance of any of them wanting to move into the private sector now.

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