Current Region & Language
Currency
UAE Dirham (AED)
Employer Taxes
Employer contributions are about 12.5% for social security (for UAE nationals).
Payroll Frequency
Monthly
Language
Arabic
Date Format
DD/MM/YYYY
United Arab Emirates By The Numbers
9 million
Population
AED 1 trillion
GDP
5
National Holidays
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Weekly Working Hours
National Holidays
Leave
Workers are entitled to holiday, sick pay, maternity, paternity, pilgrimage, bereavement leave. Five days’ leave applies in the event of the death of the employee’s spouse. Three days’ leave applies in the event of the death of the employee’s parent, child, sibling, grandchild or grandparent. Also from 2 February 2022, employees with at least two years’ service are entitled to 10 working days’ study leave per annum to take exams. The employee must be affiliated or regularly studying with an approved UAE education institution.
Employment Contracts
Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws.
Types of Employment
There are two types of employment: Employees and Independent Contractors.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
Factors taken into account to determine if an independent contractor (IC) can work compliantly in the UAE include having their own valid company license, professional license, freelance visa, or remote working visa. These credentials ensure that the IC meets the legal requirements for operating independently in the country.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
The UAE does not have a federally mandated minimum wage, but it has established minimum salary guidelines for specific categories of employees. These guidelines are not legally binding but serve as a benchmark for employers to ensure fair compensation. In 2013, the Ministry of Human Resources and Emiratisation (MoHRE) introduced three salary tiers for different types of workers: university graduates are recommended to earn at least AED 12,000 ($3,267) per month, skilled technicians should earn a minimum of AED 7,000 ($1,905) per month, and skilled laborers with a secondary school certificate are advised to receive at least AED 5,000 ($1,361) per month.
Medical Benefits
Statutory entitlement does not start until three months after the employee has completed any probationary period (but many employers do not enforce this restriction). The employee is eligible for a maximum of 90 calendar days’ sick leave in any year of service, with; the first 15 calendar days at full pay; the next 30 calendar days at half pay; and the remaining 45 calendar days unpaid.
Probationary Periods
A worker may be employed on probation for a period not exceeding six months,during which the employer without notice or severance pay may terminate hisservices. A worker shall not be placed on probation more than once with the same employer.
Termination Notice
There is a 30 day termination notice requirement.
Severance
End of Service Benefits in the UAE are structured as follows: employees are entitled to 21 days of basic salary for each year of service up to 3 years. After 3 years of employment, the entitlement increases to 30 days of basic salary for each subsequent year of service.
Pre-hire Checks
Government screening and security checks, in-country medical checks, and police clearance certificates are often required as part of the pre-employment process.
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