Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - United Arab Emirates

Your quick guide on talent and labor compliance norms in United Arab Emirates
Talk to our experts
Capital
Abu Dhabi
Currency
UAE Dirham (AED)
Languages
Arabic
Payroll Frequency
Monthly
GDP per Capita
$44,752
Employer Tax
12.5%

Supplementary Guide for Employment and Expansion in United Arab Emirates

Talent Overview

An advanced economy and high rising skyscrapers are what the United Arab Emirates (UAE) is known for. The country primarily focuses on two of the most significant industries: Oil & Tourism. Growing industrialization in the UAE has increased the number of opportunities.

Major Economic Hubs:

Dubai, Abu Dhabi, Ajman, Ras Al Khaimah

Skills in Demand:

Cybersecurity, Human Resource Manager, Data Analysts, Machine learning.

Local Universities

The top local universities of the United Arab Emirates are mentioned below with world rank;

United Arab Emirates University

RANKING

United Arab Emirates : 1

World : 1687

American University of Sharjah

RANKING

United Arab Emirates : 2

World : 2260

New York University Abu Dhabi

RANKING

United Arab Emirates : 3

World : 2456

University of Sharjah

RANKING

United Arab Emirates : 4

World : 2572

Higher Colleges of Technology

RANKING

United Arab Emirates : 5

World : 2914

Salary Data

Below mentioned are the most common jobs in the United Arab Emirates with the average salary range;

Job Title Salary Range (in Local Currency) Salary Range (in USD)
Sales Executive 14,400 - 42,300 3,920.39 - 11,516.16
Project Manager 13,700 – 38,300 3,729.82 - 10,427.16
Software Developer 9,370 - 30,700 2,550.98 - 8,358.06
Technical Product Engineer 8,640 - 27,500 2,352.24 - 7,486.86
Data Analyst 8,370 - 28,100 2,278.73 - 7,650.21
UX Designer 7,230 - 20,700 1,968.36 - 5,635.57
Chief Accountant 6,440 - 21,100 1,753.29 - 5,744.47

Talent Sourcing Tips

Top Local Job Portals

Gulftalent, Laimoon, Monstergulf

Number of LinkedIn Users (2022)

5,910,000

Top Recruitment Agencies

Bayt, BAC Middle East, Hays, Nadia

Employing in United Arab Emirates

To onboard employees from the United Arab Emirates, the employer should be knowledgeable with the Employment terms, Labor laws, deductions, and benefits. This section has all the necessary information that employers can use.

Employee Contract

According to the UAE labor laws, the employment contract is necessary for the employment process. The employment contract mentions all the employment details, including overtime pay, paid leaves, social security, and allowances. The employer can provide the employee contract either in English or Arabic.

Probation Period

The probationary period for employees ranges from 3 - 6 months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
2 Jan New Year's Day Holiday National holiday
3 May Eid al-Fitr (Tentative Date) National holiday
4 May Eid al-Fitr Holiday (Tentative Date) National holiday
5 May Eid al-Fitr Holiday (Tentative Date) National holiday
8 Jul Arafat (Hajj) Day (Tentative Date) National holiday
9 Jul Eid al-Adha (Feast of Sacrifice) (Tentative Date) National holiday
10 Jul Eid al-Adha Holiday (Tentative Date) National holiday
11 Jul Eid al-Adha Holiday (Tentative Date) National holiday
30 Jul Al-Hijra (Islamic New Year) (Tentative Date) National holiday
8 Oct Mouloud (Tentative Date) National holiday
1 Dec Commemoration Day National holiday
2 Dec National Day National holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 30 days Yes
Sick Leave 15 days Yes
Maternity Leave 8 weeks Yes

Payroll

Payroll Cycle

The employees in UAE are paid once a month.

Know More

Minimum Wage

There is no minimum wage. However, the UAE laws ensure that the employees get a basic salary to fulfill the basic demands.

Know More

Overtime Pay

The employer has to pay one full day payment with 50% of the basic wage to the employee. Additionally, the employee can compensate with a rest day when the employee has worked during a holiday or leaves.

Know More

Health Examination Clause

Bonus

13th Month Pay

There is no specific law that ensures the 13th-month pay in the UAE. However, depending on the employer, they can give out the 13th month pay but the 14th month is also customary and is paid at the end of the year.

Employee Benefits

Employers have to provide the following mandatory benefits to the employee;

  • ~Social Security 
  • ~DEWS
  • ~Health Insurances
  • ~Maternal Leaves
  • ~Hajj and Umrah Leaves
  • ~Educational Leaves
  • ~Allowances
Talk to our experts

Taxes

Employer Payroll Tax

Type Contribution
Social Security 12.5%
DEWS 5.83% or 8.33%

*The contributions mentioned above are made monthly based on the employee's income.

Employee Payroll Tax

Type Contribution
Social Security 5%

Employee Income Tax

An individual is not subjected to any income tax in the United Arab Emirates.

VAT

The standard rate of VAT in the UAE is 5%.

Offboarding & Termination

Termination Process

Based on written notice of “Legitimate reason”, either the employee or the employer can terminate the employment contract. However, an employer cannot terminate an employee on sick leave.

Notice Period

Depending on the employment contract, the employee has to serve 30 days to 90 days notice period to the employer. The notice period for probationary employees before termination ranges from 7- 14 days.

Severance Pay

The severance pay in the UAE is known as Gratuity pay. This pay is only applicable if the employee has given one year or more of service. The remuneration is calculated in the following manner; 

  • ~If the employee has served for more than 1 year and less than 5 years, 21 days' salary will be paid by the employer.
  • ~If the employee has served for more than 5 years, 30 days' salary will be paid by the employer.

In both the mentioned cases, the gratuity pay should not exceed the wage of 2 years.

Visa and Immigration

The employees who belong to GCC and the UAE will only need a work permit. However, other employees will need a residence visa and work permit sponsored by an established UAE entity employer. 

Other employees can work under the sponsorship of a spouse work permit in the UAE. 

Know More
Streamline payroll and compliance for your international workforce
Get Started