Employer of Record in United Arab Emirates

Back to all countries

Effortless hiring in

United Arab Emirates

The UAE, located in the Middle East, is a federation of seven emirates, with Dubai and Abu Dhabi as its most famous cities. Dubai is known for its futuristic skyline, including the Burj Khalifa, the world’s tallest building. The country’s rapid development has turned it into a global hub for trade, tourism, and innovation. Desert safaris, luxury shopping, and traditional souks showcase its cultural diversity. The UAE blends modernity with heritage, seen in landmarks like the Sheikh Zayed Grand Mosque.

Languages

Arabic

Population

10.2 Million

Capital City

Abu Dhabi

Currency

United Arab Emirates Dirham (AED)

Cost of living ranking

27th

VAT (Value Added Tax)

Hiring in

United Arab Emirates

Employment Contracts

According to Federal Decree-Law No. 33 of 2021, employment contracts must be in writing and should specify:
Job responsibilities.
Compensation.
Working hours.
Other essential terms.
Employers are required to provide this contract within 30 days of employment commencement.

Probationary Period

Employers may implement a probationary period not exceeding six months. During this time, either party can terminate the employment with a minimum notice period of 14 days.

Payroll Management in

United Arab Emirates

Payroll Frequency

Employees are typically paid on a monthly basis, with payments made on a predetermined date agreed upon in the employment contract.

Minimum Wage

The UAE does not have a nationwide statutory minimum wage. However, wages are generally determined through employment contracts and must meet the basic needs of employees.

Overtime

Standard working hours are 8 hours per day or 48 hours per week. Overtime is compensated at:
125% of the regular pay rate for overtime on weekdays.
150% for overtime occurring between 10 PM and 4 AM or on rest days.

Taxation in

United Arab Emirates

Employee Contributions

Social Security: For UAE nationals, employees contribute approximately 5% of their gross salary to social security. Expatriates are generally exempt from these contributions.

Employer Contributions

Social Security: Employers contribute approximately 12.5% of the Emirati employee's gross salary to social security. Expatriates are generally exempt from these contributions.

Income Tax

The UAE does not impose personal income tax on individuals, making it an attractive destination for expatriates.

Leave in

United Arab Emirates

Types of Leave in the UAE

Annual Leave

Employees are entitled to 30 calendar days of paid annual leave after completing one year of service. For service between six months and one year, employees are entitled to two days of leave per month.

Public Holidays

The UAE recognizes 15 public holidays each year, which are separate from annual leave entitlements. Employees are entitled to these days off with pay.

Sick Leave

Employees are entitled to up to 90 days of sick leave per year:
The first 15 days are fully paid.
The next 30 days are compensated at 50% pay.
The remaining 45 days are unpaid.

Maternity Leave

Female employees are entitled to 60 days of maternity leave, comprising 45 days at full pay and 15 days at half pay. An additional 45 days of unpaid leave can be taken if supported by a medical certificate due to pregnancy-related illness.

Paternity Leave

Fathers are entitled to 5 days of paid paternity leave, which can be taken within six months of the child's birth.

Benefits in

United Arab Emirates

Health Insurance

Employers are required to provide health insurance coverage for their employees, ensuring access to necessary medical services.

End-of-Service Gratuity

Upon termination, employees are entitled to an end-of-service gratuity calculated based on their length of service and final wage. This gratuity is payable after at least one year of continuous service.

Termination in

United Arab Emirates

Notice Period

The minimum notice period for terminating an employment contract is typically 30 days but cannot exceed 90 days depending on the terms specified in the contract.

Severance Pay

Employees who have worked for more than one year are entitled to end-of-service gratuity calculated as follows:
For the first five years: 21 days' basic salary for each year of service.
For each additional year beyond five years: 30 days' basic salary for each additional year.

Dismissal Procedures

Employers must have a legitimate reason for termination, such as performance issues or redundancy. The process must comply with UAE Labour Law, including providing appropriate notice and settling all dues.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

Employment Contracts

Probationary Period

Payroll Frequency

Minimum Wage

Overtime

Employee Contributions

Employer Contributions

Income Tax

Types of Leave in the UAE

Health Insurance

End-of-Service Gratuity

Notice Period

Severance Pay

Dismissal Procedures

Sign in

Book a demo

Sign in

Book a demo

Sign in

Book a demo