Find your employer of record in United Arab Emirates

United Arab Emirates famous place - EOR World Wide
United Arab Emirates - EOR World Wide

United Arab Emirates

currency

UAE Dirham (AED)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 12.50

Employer Tax

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Abu Dhabi

UAE Dirham (AED)

DD/MM/YY

January 1st-December 31st

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United Arab Emirates famous place - EOR World Wide

Find your employer of record in United Arab Emirates

United Arab Emirates

currency

UAE Dirham (AED)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 12.50

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Abu Dhabi

UAE Dirham (AED)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

0

With 2 clicks, start your journey to Hire a contractor or remote employees in United Arab Emirates without a entity set up.

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Overview

UAE Dirham (AED)

CURRENCY

Abu Dhabi

CAPITAL

monthly

PAYROLL FRECUENCY

15

PUBLIC HOLIDAYS

0 to 12.50

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in United Arab Emirates

Employer

Company Payroll Contributions

- 12.50%

This is the contribution corresponding to the basic social security and housing subsidy. In this case, it is based on a monthly minimum of AED 1,000 and a maximum of AED 50,000. In addition, the government contributes an additional 2.5%, which adds up to 20% for social security. However, in Abu Dhabi, the rate reaches 26%, where the employer contributes 15%. In addition, the government contribution is 6% and the employee contribution is 5%.



0% - 12.5%

Total Employment Cost

Employee

Worker payroll contributions

- 5%

This contribution is for Emiratis only, not for expatriates. In this case, it is a contribution to Social Security (monthly minimum of AED 1,000 and a maximum of AED 50,000)


0% - 5%

Total Employee Cost



Employee Income Tax in United Arab Emirates

In the United Arab Emirates, there is no personal income tax.

United Arab Emirates famous place - EOR World Wide
United Arab Emirates famous place - EOR World Wide
Minimum Wage in United Arab Emirates
General

UAE labor law does not set a minimum wage for expatriate workers. However, for Emirati citizens, the educational level determines this salary for the employee as follows: If a worker does not have a high school certificate, the salary is AED 3,000. In contrast, for certificate holders, the minimum wage is AED 4,000.


Also, for workers with college degrees or higher, the salary is AED 5,000. Nevertheless, the Ministry of Human Resources and Emiratization (MOHRE) announced the entry into force of the new labour law. in this case, the new law will replace federal law number 8 of 1980 from February 2, 2022.

$1361 Minimum Wage per month

United Arab Emirates famous place - EOR World Wide

Payroll Contributions in United Arab Emirates

Payroll Cycle

Through global payroll outsourcing services, you will be able to make payments in all monthly cycles. In the UAE, the employer pays employees on the last day of each month.

13th Salary

As in other countries, in the United Arab Emirates 13th month salary is not mandatory.

Employee Benefit in United Arab Emirates

Food coupons Transportation allowance Health insurance for the employee, his spouse, and dependents Welfare allowance Bonuses Additional licenses of a maximum of 40 days Cell phone allowance Early Childhood Education Allowance Family Health Care Allowance

Visa and work permit in United Arab Emirates

If you want to hire employees in UAE of foreign origin, you will need to register them with the emigration authorities. Also, you will need to offer him a job offer so that he can work in the UAE. Similarly, the Ministry of Foreign Affairs may require such workers to meet specific qualifications. In the same way, the worker requires a work permit to be able to carry out their work in the country.


These permits generally last for 2 years for anyone who qualifies and has a job offer. Thus, the foreigner will have the right to live and work in the country during the entire period of validity of the visa, which can be renewed.

VAT in United Arab Emirates

In the country, the standard VAT rate is 5%.

Working Hours in United Arab Emirates
General

The authorities announced the reduction of the hours to four and a half days for public sector workers. In addition, now the weekend will cover from Friday afternoon to Sunday. Likewise, this announcement also includes schools and universities that will now work from Monday to Friday. Similarly, the new law does not establish Friday as the day of rest for workers. Thus, private sector companies may make changes to the schedule if they deem it necessary. Consequently, this sector will be able to align work schedules with those of the public sector from the entry into force of the new law.


Therefore, these labour laws allow employers to set a 5-hour work schedule Monday through Friday. In this way, the schedules are more flexible for those who want to attend Friday prayers. Also for those who work from home, remotely, or who want a long break. An employer of record in UAE will allow you to set a schedule accordingly, although it usually goes from 8 am to 1 pm. Then, it resumes from 4 pm to 7 pm. However, during Ramadan, the working hours reduce and may be different in free zones.

Overtime

For all work done after normal hours, the employer must pay them as overtime. However, employment contracts and collective agreements are the ones that regulate this time. Through HR and Payroll Outsourcing in UAE, you will be able to calculate the 2 overtime rate. The hours between 9 pm and 4 am, the payment is 125% of the regular salary. Nevertheless, for any other time, the hours must be paid at 150% of the regular salary. Likewise, if an employee must work on Friday, they must receive 150% of their salary and a paid day off.

Working Week

Monday Friday

Employee Termination in United Arab Emirates
Termination Process

Through the Employer of record in UAE, you can learn about the termination process in the country. This is based on the requirements established in the corresponding labor law. Even so, an employer can provide good cause to terminate the employee without notice. In addition, to do this, you must notify the termination in writing and send it to the authorities.

Notice Period

Through PEO you will be able to find out what the laws say about the notice period, which must be at least 30 days. On the other hand, employees under the DIFC labor law receive a period of notice according to the duration of their employment. In this case, they can be business days notice or payments, defined as follows:


  • 2 weeks notice, for employees with between 1 and 5 months of service.
  • Likewise, 1 month notice for workers with up to 5 years of work.
  • On the other hand, 90 days notice for workers with more than 5 years of service.


Severance Pay

With an EOR in UAE, you can calculate severance pay for workers who receive it if they have completed one year of service. Said compensation consists of the following: They will receive 21 days of salary for each year worked during the first 5. 30 days of salary for each year after the first 5. In addition, the compensation for a period greater than one year is prorated. The professional employment organization calculates this payment based on the last salary of the worker.


For its part, the compensation for foreign employees is limited to 2 years of work. In the same way, if the authorities do not recognize the cause of termination, the employee may receive compensation of 3 months salary. Employees are also entitled to their EOSG upon the termination of employment. Likewise, employees who have been fired for serious misconduct may receive it.

Probation Period

In the United Arab Emirates, the trial period cannot be longer than 6 months, in which the contract can be terminated by both parties. Despite this, the employee who wants to terminate his contract must notify 14 days in advance. Likewise, it will happen with a foreign worker who wants to end the contract and leave the country. With the Employer of record in UAE, you can perform the calculation for the replacement of those notice gods by equivalent salary.

Employee Leaves in United Arab Emirates
Paid Time Offs

Workers who complete one year of service receive 30 days of paid leave per year in the UAE. In addition, it must be added to any holiday. In the same way, the company is obliged to pay for this leave before the start of the annual vacation. Additionally, the employer may require the worker to use the full leave in the applicable year. Companies may also limit the extension of the license in the way they prefer.

United Arab Emirates famous place - find your EOR
Public Holidays

There are 15 national holidays throughout the year.

Vacation Holidays

There are 30 vacation holidays throughout the year.

Sick Days

Employees with at least 3 months of service are entitled to receive up to 90 days of annual sick leave. However, the employee must provide a medical certificate within 48 hours of illness. Then, the employee will receive 100% of their salary payment for the first 15 days of the leave. Nevertheless, you will only receive 50% for the next 30 days, then you will not receive any payment for the remainder of the license. Although these calculations may seem complicated, the Employer of record in the United Arab Emirates makes them easy.

Paternity Leave

There is no paternity leave in the United Arab Emirates.

Paternal Leave

Although this license does not exist in the Emirates, it is granted in the private sector. Thus, employees in this sector receive 5 days of paid vacation for both parents of a newborn. However, they will only be able to aspire to this license until the child is 6 months old. With the new regulations, the employee must present proof of the birth of their child to be eligible for this leave.


Other Leave

Leave for humanitarian reasons.


  • 5 days of leave in case of the death of the spouse of the worker.
  • 3 days leave in case of death of a close relative (mother, father, son, sister, brother, grandson, or grandparent)


Maternity Leave in United Arab Emirates

UAE labor law states that all female employees are entitled to maternity leave. As with other cases, they must have completed at least one year of service with the company to receive the permit. In this case, it consists of 60 days of leave, which are paid at 100% for the first 45 days. For the remaining 15 days, the payment is reduced to 50%. However, employees who have not completed one year of service do not have a 50% pay reduction.


Employees may take maternity leave before or after the expected date of delivery. Similarly, female employees can take 45 days of unpaid leave for pregnancy-related illnesses. But they must present a medical certificate to verify said condition. The new labour law does not allow the contract of the employee to be terminated due to pregnancy or maternity leave

There are 45 leave throughout the year.

United Arab Emirates famous place - find your EOR

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