United Arab Emirates
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
United Arab Emirates
Everything you need to know about payroll, benefits & hiring top talent in United Arab Emirates
Currency
United Arab Emirates Dirham (AED)
Salary payment frequency
Monthly
Capital
Abu Dhabi
Time Zone
GMT + 4:00
Official Languages
Arabic
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- The United Arab Emirates, or the Emirates, is a country in Western Asia, located at the eastern end of the Arabian Peninsula
- It spans an area of approximately 83 600 km2 (31 976 mi2) and has a population of over 9.9 million
- The United Arab Emirates has the most diversified economy among the members of the Gulf Cooperation Council and has become less reliant on oil and gas and has placed more emphasis on tourism and business
- The United Arab Emirates’ economy ranks 29th by nominal GDP (2021) and 33rd by PPP (2020)
- It ranks 31st on the HDI (2019)
Why Employ In United Arab Emirates?
- The main exports include crude petroleum, refined petroleum, gold, jewellery, broadcasting equipment
- 7.94% of the population is between the ages of 15 and 24 years, with 68.03% of the population being between the ages of 25 and 54. The United Arab Emirates has an incredibly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
- The main source of labour law in the United Arab Emirates is the Federal Law No. 8 on the Organisation of Labour Relations accompanied by various Ministerial Decrees and Resolutions
- The labour regulations cover matters such as working hours, overtime, leave, public holidays, minimum wage, termination of employment, end of service gratuity payments and injuries at work injuries
- Labor law in the United Arab Emirates protects both employers and employees
Fun Country Facts
- The Dubai Police’s fleet of vehicles comprises of supercars including Bugatti, Ferrari, Bentley, Lamborghini, Camaro and Mercedes
- Abu Dhabi boasts the world’s fastest roller coaster which can reach speeds of over 240 kilometres per hour
- The Dubai Mall is the largest mall in the world at 1,124,000 m2, the equivalent of 50 football pitches
Why Use Playroll Services For United Arab Emirates?
- Employing in the United Arab Emirates requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in the United Arab Emirates
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Security
Calculated on a minimum salary of AED 1,000.00 and a maximum salary of AED 50,000.00 per month
12.50%
Medical
Combined average
AED 10,000.00 per annum
Young single person – average
AED 5,000.00 per annum
Family of four – average
AED 33,500.00 per annum
DIFC Employee Workplace Savings Scheme (DEWS)
Low
5.83%
5.83%
High
8.33%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security
Calculated on a minimum salary of AED 1,000.00 and a maximum salary of AED 50,000.00 per month
5.00%
Income Tax
There is no income tax levied on employee’s income
Employment Terms
General
Minimum Wage
- There is no minimum wage in the United Arab Emirates
Working Hours
- Maximum of 8 hours per pay and 48 hours per week
- Minimum meal interval of 60 minutes after 5 or more hours of work
- Typical working hours start at 08h00 and end by 17h00, Sunday to Thursday
Overtime
- Maximum of 2 hours per day
Notice Period
- 30 days’ notice (indefinite term contract)
Severance Pay
- Employed between 0 and 5 years- 21 days for each year of service
- Employed for 5 or more years- 30 days for each additional year thereafter, provided the aggregate amount of severance pay does not exceed 2 year’s wages
Probation Period
- There is no statutory probation period
- Probation periods may be a maximum of 6 months
Bonus
- There is no statutory bonus
Public Holidays
- January 1st – New Year’s Day
- April 30th – 4th May – Eid al-Fitr Holiday
- July 8th – Arafat Day
- July 9th – 11th July – Eid al-Adha
- July 30th – Islamic New Year
- October 8th – Prophet Muhammad’s Birthday
- December 1st – Commemoration Day
- December 2nd – 3rd – National Day
Leave
Paid Leave / Vacation Days
- Employed for less than 6 months- 0 days
- Employed between 6 months and 1 years- 2 days per month of employment
- Employed for 1 year or more- 30 days
Sick Leave
- Paid and unpaid leave
- Paid by employer
– 0 – 15 days leave- 100% pay
– 16 – 45 days leave- 50% pay
– 46 – 90 days leave- 0% pay
Maternity Leave
- Paid leave
- Paid by employer
- 45 days
- 100% pay if employed for more than a year, 50% pay if employed for less than a year
Paternity Leave
- Part of parental leave
Hajj Leave
- Optional leave
- Unpaid
- 30 days
Start hiring in United Arab Emirates today!