United Arab Emirates

The United Arab Emirates (UAE) offers a dynamic business environment with a growing expatriate workforce. Understanding the local payroll, taxation, and employment regulations is essential for businesses operating or planning to establish a presence in the UAE.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
UAE Dirham (AED)
Payroll Frequency
Monthly
Employer Taxes
12.50%

Overview

Population
~ 9.9 million
Language
Arabic
Capital
Abu Dhabi
Currency
UAE Dirham (AED)
Country code
+971
Min wage
No federal minimum wage; however, salary guidelines exist based on qualifications
Working hours
8 hours per day
Weekdays
Sunday to Thursday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
Avg employer tax

12.50%

Tax Breakdown

Personal Income Tax:

Income Tax
The UAE does not impose personal income tax on individuals

Social Security Contributions:

GCC Nationals
Subject to their home country's social security regulations
Non-GCC Nationals
Exempt from social security contributions

UAE Nationals - 20%:

Employee Contribution
5%
Employer Contribution
12.5%
Government Contribution
2.5%
Abu Dhabi Adjustment
Increases employer contribution to 15% and government contribution to 6%, totaling 26%

Corporate Tax:

Standard Rate
9% on taxable income exceeding AED 375,000
Free Zone Exemption
Qualifying Free Zone Persons may benefit from a 0% corporate tax rate under certain conditions

VAT

VAT

5%

Tax Calculation for United Arab Emirates
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in United Arab Emirates typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Ministry of Human Resources and Emiratisation (MoHRE) and the Federal Authority for Identity and Citizenship (ICA)

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in United Arab Emirates
When drafting an employment contract for employees in United Arab Emirates, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid for up to 90 days; first 15 days at full pay, next 30 days at half pay, and subsequent days unpaid
Maternity leave
  •  60 days; 45 days at full pay and 15 days at half pay
Paternity leave
  • Not mandated by law; varies by employer
Annual Leave
  • Minimum of 30 calendar days per year
7 Public holidays in United Arab Emirates
1st
New Year's Day
29th
Eid al‑Fitr
30th
Eid al‑Fitr
31st
Eid al‑Fitr
5th
Arafat Day
6th
Eid al‑Adha
7th
Eid al‑Adha
8th
Eid al‑Adha
26th
Islamic New Year
5th
Prophet Muhammad’s Birthday
1st
Commemoration Day
2nd
National Day Holidays
3rd
National Day Holidays

Termination Process

Notice Period

Typically 30 days; can vary depending on the employment contract

Severance Pay

End-of-service gratuity is calculated based on the length of service and final salary

Termination During Probation

Either party can terminate with appropriate notice

Probation Period

  • Duration:Up to 6 months
  • Benefits: Employees are not entitled to sick pay during the probation period
  • Termination: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in United Arab Emirates
with RemotePass

Whether you're navigating ADGM regulations, managing DEWS contributions, or onboarding talent in a free zone, our local specialists are here to guide you. 

We handle the complexity so you can build your team with confidence.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United Arab Emirates.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

The insider’s guide to hiring in the United Arab Emirates (UAE)

The UAE is our home turf. This guide shares our firsthand expertise on DEWS, WPS, and free zone regulations. So you can hire with the confidence of a local. 

RemotePass makes hiring in the UAE simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key takeaways for hiring in United Arab Emirates (UAE)

  • Employment contracts in the UAE must be inArabic and English and include terms like notice periods, job title, and working hours. Fixed-term and open-ended contracts are allowed.
  • UAE payroll compliance requires monthly payments in AED (or USD). There’s no minimum wage, but employers must comply with WPS in mainland UAE. Contributions vary by nationality.
  • Employee benefits in the UAE include mandatory health insurance (in Dubai & Abu Dhabi), social security for Emiratis, and end-of-service gratuity for all employees who complete at least one year of service (unless replaced by a savings or pension scheme).
  • Leave entitlements include 20 working days of annual leave, 8 paid public holidays, and generous parental benefits. The ADGM leave policy allows for up to five days of leave carryover, 65-day maternity leave, and protections against dismissal during pregnancy.
  • Remote hiring in the UAE is possible without setting up a legal entity. An Employer of Record (EOR) like RemotePass ensures compliance with UAE labor laws.
  • The UAE offboarding process includes settling final payments within 21 days, cancelling the employee’s visa, and, if applicable, arranging repatriation. Once a visa is cancelled, the employee has 30 days to secure new sponsorship or leave the country.

What Should You Know Before Hiring in the UAE?

Continent
Asia
Capital
Abu Dhabi
Currency
UAE Dirham (AED)
Language
Arabic
Payroll Cycle
Monthly
Pay Date
End of the month

How Do Employment Contracts Work in the UAE?

Contract Type
Fixed-term / Open-ended
Local Language Required?
Yes
Bilingual?
Yes, contracts must also be in English
Probation Period
Up to 6 months
Minimum Paid Time Off
20 working days
Public Holidays
8 public holidays
Notice Period
First 3 months - 7 days
After 3 months - 30 days
Parties can agree to a longer period.

What do you need to include in a UAE employment contract?

Make sure you include the following to comply with local labor laws:

Employee Information

Full legal name and government-issued ID or passport number

Job Title & Role Description

Clearly defined role and responsibilities

Start Date

When employment begins

Contract type & duration

Fixed-term or open-ended, with specified length if applicable

Working hours

Standard weekly hours, including any variations (e.g., Ramadan adjustments)

Probation period

Length of probation and terms for early termination during this phase

Notice periods

Required notice for resignation or termination by either party

Termination clauses

Conditions for dismissal, resignation, or end of fixed-term agreements

Compensation & benefits

Salary breakdown, allowances, and mandatory benefits like health insurance or end-of-service gratuity

ADGM or DIFC entities often require bilingual contracts (Arabic and English). Additional terms may apply based on zone-specific laws.

How does payroll work in the UAE?

Understanding payroll in the UAE helps you stay compliant and plan salaries accurately. Especially since rules differ for UAE Nationals and expats.

UAE payroll basics

Salary currency

AED (UAE Dirham, Dh), USD (US Dollars)

Minimum Wage

There’s no minimum wage for Abu Dhabi or the ADGM.

Hours per Week

  • Regular hours: 48 hours per week / 8 hours per day
  • Ramadan adjustment: 36 hours per week / 6 hours per day

Payroll Frequency

Monthly

Pay date

End of the month

Weekdays

Monday through Friday

Mandatory Bonuses

Not required

Gross salary structure in the UAE

Gross salary doesn’t follow a standardized structure in the UAE. Employers set salaries based on role, experience, and industry norms rather than a fixed band.

This means two employees with Sales Executive job titles might receive very different gross salaries depending on the employer and location.

What payroll taxes do employers pay in the UAE?

Employer cost % (estimate):


UAE Nationals (Emiratis)


UAE Nationals (Emiratis) in Abu Dhabi


Expats

Employer contributions breakdown:


UAE Nationals (Emiratis)

Social Security/Pension:

  • 12.5%
  • 15% for UAE Nationals (Emiratis) in Abu Dhabi

Health Insurance:

Employers must provide health insurance in Dubai and Abu Dhabi. In other Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, Fujairah), it’s not legally required, but many employers still offer it voluntarily. Providing coverage can help you attract and retain top talent and stay competitive in the UAE market.


Expats

Social Security/Pension:

No social security or pension contributions are required by law.

Health Insurance: 

Mandatory in some Emirates (e.g., Dubai, Abu Dhabi) for employers to provide insurance.

What payroll deductions are taken from employees?

Individual Income Tax

No individual income tax

Social Contributions


UAE nationals (Emiratis) - Social security / Pension:

5% or 11% of salary, depending on pension history. Employees with a previous pension contribution continue at 5%; those without a prior record follow the new law at 11%.


Expats:

No social security or pension contributions are required.

Hiring cost calculator 

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AE
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

What employee benefits are mandatory in the UAE?

The UAE requires some benefits by law. Offering additional perks can attract top job seekers and give you a competitive edge when hiring.

Benefits Mandatory? Notes
Health Insurance Yes, in several emirates, including Dubai and Abu Dhabi

Employers in Dubai and Abu Dhabi must provide health insurance that meets local authority standards.

In other emirates, offering coverage is optional, though many companies provide it voluntarily or as part of the employment contract.

Pension / Social Security Yes, only for UAE nationals (Emiratis) Covered by the General Pension and Social Security Authority (GPSSA).
Other Statutory Benefits Yes End-of-Service Benefits (EOSB)

What leave are employees entitled to in the UAE?

Annual leave

Employees who’ve worked at least three months are entitled to 20 working days of annual leave.

During the first year, leave accrues monthly at 1/12th of the annual entitlement. For example, an employee who has worked for six months would have accrued 10 days of leave.

In the ADGM, employees can carry forward up to five days of unused leave each year.

Public holidays

Employees in the UAE are entitled to paid leave for eight official public holidays each year. Most of these holidays follow the lunar calendar, so their dates change annually. The recognized holidays include:

  • January 1: New Year's Day

  • The Prophet Mohammed’s Birthday

  • Al Isra and Al Mi'raj (The Prophet’s Ascension)

  • Eid al-Fitr (two days)

  • Eid al-Adha (three days)

  • Islamic New Year

  • Commemoration Day

  • December 2: UAE National Day

Sick Leave

In the ADGM, employees who’ve completed at least one month of service are entitled to 60 working days of paid leave per year.

Maternity Leave

In the ADGM free zone, female employees who have worked at least 12 months and given the required notice are entitled to 65 days of maternity leave after the birth or

Adoption of a child. The first 33 days are fully paid, and the remaining days are paid at half salary.

While on maternity leave, employees can’t be dismissed or have their job changed without consent. They also have the right to return to their original role or a suitable alternative with the same terms once their leave ends.

Paternity Leave

5 working days, to be taken within 2 months of the child’s birth.

Other Types of Leave

Bereavement leave: 5 working days for death of spouse, parent, child (including an adopted child) or sibling.

Adoption leave: 65 working days. - Miscarriage leave: 65 working days.

Hajj Pilgrimage leave: 30 days.

How do terminations and resignations work in the UAE?

Different types of termination have different notice requirements and severance obligations. Knowing the rules upfront protects both your business and employees.

Type Possible?
Termination for cause (poor performance, misconduct, etc.) Yes
Termination without cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup. The EOR handles staffing changes, so standard redundancy procedures don’t apply
Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

UAE employee resignation

Form

Written notice. Either through an email or signed letter.

Notice Period

  • During probation: 7 days
  • After probation: 30 days (or any other notice period agreed in the contract)

Payment instead of notice

You can pay the employee instead of having them serve their notice, but they must agree in writing.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked for more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer).

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary

Employees receive payment for all days worked up to their termination date.

Accrued but unused leave pay

Any unused annual leave must be paid out when employment ends.

Pro-rated bonuses/commissions/expenses

Any unpaid amounts due to the employee under their contract should be calculated and paid on a pro-rated basis.

Termination Documentation

  • Written resignation notice
  • Final dues letter (a document signed by the employee confirming that they’ve received all the payments and benefits they’re owed)

Final payment timing and compliance

Deadline

Employers must pay all final amounts owed within 21 calendar days of the employee’s termination date.

Penalty

If payments are late, the employer must pay the employee a daily penalty equal to their wage for each day overdue.

Repatriation flight

When required, the employer can either book the employee’s flight home or reimburse the cost if the employee arranges it themselves.

Employer termination with cause

Acceptable grounds

An employer can terminate an employee immediately if the employee’s conduct justifies it. Typical reasons include gross misconduct, theft, fraud, or criminal activity.

Notice

Form

Written notice. Either through an email or signed letter

Notice period

No notice period required. Termination is with immediate effect

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance

If the employee has worked more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: Employees participating in a pension or savings scheme from the start are not entitled to gratuity unless the employer agrees otherwise.

Other Benefits

Notice period pay

  • 7 days pay if the employee is on probation.
  • 30 days pay after probation (or the contractually agreed notice period)

Prorated Salary

Compensation for days worked until termination date.

Accrued but unused leave pay

Payment for unused annual leave.

Pro-rated bonuses/commissions/expenses

Pro-rated bonuses, commissions, or expenses as per contract

Repatriation Flight

Not applicable in termination for cause.

Termination Documentation

  • Written termination letter
  • Final dues letter (document signed by the employee confirming that they’ve been paid all their final dues)
  • Upon employee request:
    • Written statement of the reason for termination. To be provided within 21 days from the date of request.
    • Employment reference letter. To be provided within 21 days from the date of request.

Final payment timing and compliance

Final payment deadline

All final payments must be paid within 21 calendar days of the employee’s termination date.

Penalty

Late payments incur a daily penalty equal to the employee’s wage

Repatriation flight

If applicable, the employer can book the flight or reimburse the employee.

Employer termination without cause in the UAE

Form

Written notice. Either through an email or signed letter.

Notice Period

  • During probation: 7 days
  • After probation: 30 days or any other contractually agreed notice period

Payment in lieu of notice or notice waiver

Allowed if the employee agrees in writing.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer).

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary

Compensation for days worked until termination date.

Accrued but Unused Leave Pay

Payment for unused annual leave.

Pro-rated bonuses/commissions/expenses

Any due and unpaid amounts, subject to contract terms.

Termination Documentation

Written termination notice.
Final dues letter (document signed by the employee confirming that they have been paid all their final dues)
Upon employee request:

  • Written statement of the reason for termination. To be provided within 21 days from the date of request.
  • Employment reference letter. To be provided within 21 days from the date of request.

Final payment timing and compliance

Final payment deadline

All final payments must be paid within 21 calendar days of the employee’s termination date.

Penalty

Late payments incur a daily penalty equal to the employee’s wage

Repatriation flight

If applicable, the employer can book the flight or reimburse the employee

Mutual Termination Agreements (MTAs) in the UAE

MTA is a voluntary agreement signed by the employer and employee to mutually terminate an employment contract.

Notice

Form

The agreed terms of the mutual termination must be documented in writing, through a mutual termination agreement (MTA) signed by both parties.

Notice Period

Not mandatory, as the termination is mutually agreed. Parties may agree on a termination date that is immediate or in the future.

Waiver of notice

Since termination is consensual, both parties can waive any notice period in the agreement.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer).

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary & Leave

Included in MTA:

  • Final salary up to termination date
  • Accrued but unused leave pay
  • Prorated bonus/commission/expenses (if applicable and agreed)

Termination Documentation

Mutual Termination Agreement, signed by both parties, outlining:

  • Termination date
  • Final entitlements
  • Return of company property
  • Non-disparagement / confidentiality clauses (optional)

Upon employee request:

  • Termination date

Final payment timing and compliance

Final payment deadline

All final dues must be paid within 21 calendar days of termination date.

Penalty

Failure to pay within 21 days attracts a daily penalty equal to the employee’s daily wage.

Repatriation flight

Must be booked or reimbursed unless the employee obtains new sponsorship within 30 days post-termination.

Offboarding process for the end of fixed-term contracts in the UAE

Form

Written notice of non-renewal. Either through an email or signed letter

Notice Period

No notice period required.

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked more than one year, calculate gratuity as

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter
  • If an employee has multiple successive fixed-term contracts, add all periods together when calculating total service for gratuity purposes

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer)

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary

Compensation for days worked until last working date.

Accrued but unused leave pay

Payment for unused annual leave.

Pro-rated bonuses/commissions/expenses

Any due and unpaid amounts, subject to contract terms.

Termination Documentation

Notice of non-renewal of contract
Final dues letter (document signed by the employee confirming that they have been paid all their final dues)

Upon employee request:

  • Employment reference letter. To be provided within 21 days from date of request.

Final payment timing and compliance

Final payment deadline

All final payments must be paid within 21 calendar days of the employee’s last working date.

Penalty

If an employer fails to comply with this, they will be required to pay a penalty to the employee equal to the employee’s daily wage for each calendar day that the employer is in arrears of its payment obligations.

Repatriation flight

Must be booked or reimbursed unless the employee obtains new sponsorship within 30 days post-termination.

Visa and immigration compliance

If the employee is sponsored by RemotePass, their UAE residency visa and work permit must be canceled.

The employee has 30 days from cancellation to either:

  • Find new UAE sponsorship; or
  • Exit the UAE.
  • Visa cancellation can only proceed once the employee has received all final payments.
Key Elements of an Employment Contract in United Arab Emirates
When drafting an employment contract for employees in United Arab Emirates, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Finally, a payroll partner that actually gets the UAE.

Whether you're navigating ADGM regulations, managing DEWS contributions, or onboarding talent in a free zone, our local specialists are here to guide you. 

We handle the complexity so you can build your team with confidence.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United Arab Emirates.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Get tailored guidance on entity-free hiring, DEWS, payroll compliance, and more.

FAQs

Got Questions? Find Answers Here

Do I need a local entity to hire in the UAE?

No. You can use an Employer of Record (EOR) like RemotePass to hire compliantly without setting up a local company.

Is there income tax for employees in the UAE?

No, the UAE doesn’t levy personal income tax on salaries.

Are health benefits mandatory in the UAE?

Yes, employers must provide health insurance in several Emirates including Dubai and Abu Dhabi. In other Emirates, it’s not legally required, but many employers still offer coverage voluntarily to attract talent.

Can I terminate an employee without cause in the UAE?

Yes, you can terminate an employee without cause, but you must follow the contractually agreed notice period and pay any end-of-service gratuity or other owed amounts.

What’s the difference between EOSB and DEWS in the UAE?

EOSB is about the benefits employees receive at the end of their service, while DEWS is a tool to monitor and enforce proper wage payments throughout employment.

What happens after a visa is cancelled in the UAE?

The employee has 30 days to find a new sponsor or exit the country. Employers must ensure that they communicate this timeline and settle final payments before the visa cancellation.

Let’s Chat

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United Arab Emirates

The United Arab Emirates (UAE) offers a dynamic business environment with a growing expatriate workforce. Understanding the local payroll, taxation, and employment regulations is essential for businesses operating or planning to establish a presence in the UAE.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
UAE Dirham (AED)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
12.50%

نظرة عامة

التركيبة السكانية
~ 9.9 million
اللغة
Arabic
العاصمة
Abu Dhabi
العملة
UAE Dirham (AED)
رمز الاتصال الدولي
+971
الحد الأدنى للأجور
No federal minimum wage; however, salary guidelines exist based on qualifications
ساعات العمل
8 hours per day
أيام الأسبوع
Sunday to Thursday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

12.50%

تحصيل الضرائب

Personal Income Tax:

Income Tax
The UAE does not impose personal income tax on individuals

Social Security Contributions:

GCC Nationals
Subject to their home country's social security regulations
Non-GCC Nationals
Exempt from social security contributions

UAE Nationals - 20%:

Employee Contribution
5%
Employer Contribution
12.5%
Government Contribution
2.5%
Abu Dhabi Adjustment
Increases employer contribution to 15% and government contribution to 6%, totaling 26%

Corporate Tax:

Standard Rate
9% on taxable income exceeding AED 375,000
Free Zone Exemption
Qualifying Free Zone Persons may benefit from a 0% corporate tax rate under certain conditions

ضريبة القيمة المضافة

ضريبة القيمة المضافة

5%

حساب الضريبة في United Arab Emirates
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في United Arab Emirates عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Ministry of Human Resources and Emiratisation (MoHRE) and the Federal Authority for Identity and Citizenship (ICA)

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في United Arab Emirates
عند إعداد عقد عمل للموظفين في United Arab Emirates يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid for up to 90 days; first 15 days at full pay, next 30 days at half pay, and subsequent days unpaid
إجازة الأمومة
  •  60 days; 45 days at full pay and 15 days at half pay
إجازة الأبوة
  • Not mandated by law; varies by employer
الإجازة السنوية
  • Minimum of 30 calendar days per year
7 عطلات رسمية في United Arab Emirates
1st
New Year's Day
29th
Eid al‑Fitr
30th
Eid al‑Fitr
31st
Eid al‑Fitr
5th
Arafat Day
6th
Eid al‑Adha
7th
Eid al‑Adha
8th
Eid al‑Adha
26th
Islamic New Year
5th
Prophet Muhammad’s Birthday
1st
Commemoration Day
2nd
National Day Holidays
3rd
National Day Holidays

عملية إنهاء العقود

Notice Period

Typically 30 days; can vary depending on the employment contract

Severance Pay

End-of-service gratuity is calculated based on the length of service and final salary

Termination During Probation

Either party can terminate with appropriate notice

Probation Period

  • Duration:Up to 6 months
  • Benefits: Employees are not entitled to sick pay during the probation period
  • Termination: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في United Arab Emirates
مع ريموت باس

Whether you're navigating ADGM regulations, managing DEWS contributions, or onboarding talent in a free zone, our local specialists are here to guide you. 

We handle the complexity so you can build your team with confidence.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك United Arab Emirates.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

The insider’s guide to hiring in the United Arab Emirates (UAE)

The UAE is our home turf. This guide shares our firsthand expertise on DEWS, WPS, and free zone regulations. So you can hire with the confidence of a local. 

RemotePass makes hiring in the UAE simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key takeaways for hiring in United Arab Emirates (UAE)

  • Employment contracts in the UAE must be inArabic and English and include terms like notice periods, job title, and working hours. Fixed-term and open-ended contracts are allowed.
  • UAE payroll compliance requires monthly payments in AED (or USD). There’s no minimum wage, but employers must comply with WPS in mainland UAE. Contributions vary by nationality.
  • Employee benefits in the UAE include mandatory health insurance (in Dubai & Abu Dhabi), social security for Emiratis, and end-of-service gratuity for all employees who complete at least one year of service (unless replaced by a savings or pension scheme).
  • Leave entitlements include 20 working days of annual leave, 8 paid public holidays, and generous parental benefits. The ADGM leave policy allows for up to five days of leave carryover, 65-day maternity leave, and protections against dismissal during pregnancy.
  • Remote hiring in the UAE is possible without setting up a legal entity. An Employer of Record (EOR) like RemotePass ensures compliance with UAE labor laws.
  • The UAE offboarding process includes settling final payments within 21 days, cancelling the employee’s visa, and, if applicable, arranging repatriation. Once a visa is cancelled, the employee has 30 days to secure new sponsorship or leave the country.

What Should You Know Before Hiring in the UAE?

Continent
Asia
Capital
Abu Dhabi
Currency
UAE Dirham (AED)
Language
Arabic
Payroll Cycle
Monthly
Pay Date
End of the month

How Do Employment Contracts Work in the UAE?

Contract Type
Fixed-term / Open-ended
Local Language Required?
Yes
Bilingual?
Yes, contracts must also be in English
Probation Period
Up to 6 months
Minimum Paid Time Off
20 working days
Public Holidays
8 public holidays
Notice Period
First 3 months - 7 days
After 3 months - 30 days
Parties can agree to a longer period.

What do you need to include in a UAE employment contract?

Make sure you include the following to comply with local labor laws:

Employee Information

Full legal name and government-issued ID or passport number

Job Title & Role Description

Clearly defined role and responsibilities

Start Date

When employment begins

Contract type & duration

Fixed-term or open-ended, with specified length if applicable

Working hours

Standard weekly hours, including any variations (e.g., Ramadan adjustments)

Probation period

Length of probation and terms for early termination during this phase

Notice periods

Required notice for resignation or termination by either party

Termination clauses

Conditions for dismissal, resignation, or end of fixed-term agreements

Compensation & benefits

Salary breakdown, allowances, and mandatory benefits like health insurance or end-of-service gratuity

ADGM or DIFC entities often require bilingual contracts (Arabic and English). Additional terms may apply based on zone-specific laws.

How does payroll work in the UAE?

Understanding payroll in the UAE helps you stay compliant and plan salaries accurately. Especially since rules differ for UAE Nationals and expats.

UAE payroll basics

Salary currency

AED (UAE Dirham, Dh), USD (US Dollars)

Minimum Wage

There’s no minimum wage for Abu Dhabi or the ADGM.

Hours per Week

  • Regular hours: 48 hours per week / 8 hours per day
  • Ramadan adjustment: 36 hours per week / 6 hours per day

Payroll Frequency

Monthly

Pay date

End of the month

Weekdays

Monday through Friday

Mandatory Bonuses

Not required

Gross salary structure in the UAE

Gross salary doesn’t follow a standardized structure in the UAE. Employers set salaries based on role, experience, and industry norms rather than a fixed band.

This means two employees with Sales Executive job titles might receive very different gross salaries depending on the employer and location.

What payroll taxes do employers pay in the UAE?

Employer cost % (estimate):


UAE Nationals (Emiratis)


UAE Nationals (Emiratis) in Abu Dhabi


Expats

Employer contributions breakdown:


UAE Nationals (Emiratis)

Social Security/Pension:

  • 12.5%
  • 15% for UAE Nationals (Emiratis) in Abu Dhabi

Health Insurance:

Employers must provide health insurance in Dubai and Abu Dhabi. In other Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, Fujairah), it’s not legally required, but many employers still offer it voluntarily. Providing coverage can help you attract and retain top talent and stay competitive in the UAE market.


Expats

Social Security/Pension:

No social security or pension contributions are required by law.

Health Insurance: 

Mandatory in some Emirates (e.g., Dubai, Abu Dhabi) for employers to provide insurance.

What payroll deductions are taken from employees?

Individual Income Tax

No individual income tax

Social Contributions


UAE nationals (Emiratis) - Social security / Pension:

5% or 11% of salary, depending on pension history. Employees with a previous pension contribution continue at 5%; those without a prior record follow the new law at 11%.


Expats:

No social security or pension contributions are required.

حاسبة تكلفة التوظيف

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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

What employee benefits are mandatory in the UAE?

The UAE requires some benefits by law. Offering additional perks can attract top job seekers and give you a competitive edge when hiring.

Benefits Mandatory? Notes
Health Insurance Yes, in several emirates, including Dubai and Abu Dhabi

Employers in Dubai and Abu Dhabi must provide health insurance that meets local authority standards.

In other emirates, offering coverage is optional, though many companies provide it voluntarily or as part of the employment contract.

Pension / Social Security Yes, only for UAE nationals (Emiratis) Covered by the General Pension and Social Security Authority (GPSSA).
Other Statutory Benefits Yes End-of-Service Benefits (EOSB)

What leave are employees entitled to in the UAE?

Annual leave

Employees who’ve worked at least three months are entitled to 20 working days of annual leave.

During the first year, leave accrues monthly at 1/12th of the annual entitlement. For example, an employee who has worked for six months would have accrued 10 days of leave.

In the ADGM, employees can carry forward up to five days of unused leave each year.

Public holidays

Employees in the UAE are entitled to paid leave for eight official public holidays each year. Most of these holidays follow the lunar calendar, so their dates change annually. The recognized holidays include:

  • January 1: New Year's Day

  • The Prophet Mohammed’s Birthday

  • Al Isra and Al Mi'raj (The Prophet’s Ascension)

  • Eid al-Fitr (two days)

  • Eid al-Adha (three days)

  • Islamic New Year

  • Commemoration Day

  • December 2: UAE National Day

Sick Leave

In the ADGM, employees who’ve completed at least one month of service are entitled to 60 working days of paid leave per year.

Maternity Leave

In the ADGM free zone, female employees who have worked at least 12 months and given the required notice are entitled to 65 days of maternity leave after the birth or

Adoption of a child. The first 33 days are fully paid, and the remaining days are paid at half salary.

While on maternity leave, employees can’t be dismissed or have their job changed without consent. They also have the right to return to their original role or a suitable alternative with the same terms once their leave ends.

Paternity Leave

5 working days, to be taken within 2 months of the child’s birth.

Other Types of Leave

Bereavement leave: 5 working days for death of spouse, parent, child (including an adopted child) or sibling.

Adoption leave: 65 working days. - Miscarriage leave: 65 working days.

Hajj Pilgrimage leave: 30 days.

How do terminations and resignations work in the UAE?

Different types of termination have different notice requirements and severance obligations. Knowing the rules upfront protects both your business and employees.

Type Possible?
Termination for cause (poor performance, misconduct, etc.) Yes
Termination without cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup. The EOR handles staffing changes, so standard redundancy procedures don’t apply
Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

UAE employee resignation

Form

Written notice. Either through an email or signed letter.

Notice Period

  • During probation: 7 days
  • After probation: 30 days (or any other notice period agreed in the contract)

Payment instead of notice

You can pay the employee instead of having them serve their notice, but they must agree in writing.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked for more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer).

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary

Employees receive payment for all days worked up to their termination date.

Accrued but unused leave pay

Any unused annual leave must be paid out when employment ends.

Pro-rated bonuses/commissions/expenses

Any unpaid amounts due to the employee under their contract should be calculated and paid on a pro-rated basis.

Termination Documentation

  • Written resignation notice
  • Final dues letter (a document signed by the employee confirming that they’ve received all the payments and benefits they’re owed)

Final payment timing and compliance

Deadline

Employers must pay all final amounts owed within 21 calendar days of the employee’s termination date.

Penalty

If payments are late, the employer must pay the employee a daily penalty equal to their wage for each day overdue.

Repatriation flight

When required, the employer can either book the employee’s flight home or reimburse the cost if the employee arranges it themselves.

Employer termination with cause

Acceptable grounds

An employer can terminate an employee immediately if the employee’s conduct justifies it. Typical reasons include gross misconduct, theft, fraud, or criminal activity.

Notice

Form

Written notice. Either through an email or signed letter

Notice period

No notice period required. Termination is with immediate effect

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance

If the employee has worked more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: Employees participating in a pension or savings scheme from the start are not entitled to gratuity unless the employer agrees otherwise.

Other Benefits

Notice period pay

  • 7 days pay if the employee is on probation.
  • 30 days pay after probation (or the contractually agreed notice period)

Prorated Salary

Compensation for days worked until termination date.

Accrued but unused leave pay

Payment for unused annual leave.

Pro-rated bonuses/commissions/expenses

Pro-rated bonuses, commissions, or expenses as per contract

Repatriation Flight

Not applicable in termination for cause.

Termination Documentation

  • Written termination letter
  • Final dues letter (document signed by the employee confirming that they’ve been paid all their final dues)
  • Upon employee request:
    • Written statement of the reason for termination. To be provided within 21 days from the date of request.
    • Employment reference letter. To be provided within 21 days from the date of request.

Final payment timing and compliance

Final payment deadline

All final payments must be paid within 21 calendar days of the employee’s termination date.

Penalty

Late payments incur a daily penalty equal to the employee’s wage

Repatriation flight

If applicable, the employer can book the flight or reimburse the employee.

Employer termination without cause in the UAE

Form

Written notice. Either through an email or signed letter.

Notice Period

  • During probation: 7 days
  • After probation: 30 days or any other contractually agreed notice period

Payment in lieu of notice or notice waiver

Allowed if the employee agrees in writing.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer).

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary

Compensation for days worked until termination date.

Accrued but Unused Leave Pay

Payment for unused annual leave.

Pro-rated bonuses/commissions/expenses

Any due and unpaid amounts, subject to contract terms.

Termination Documentation

Written termination notice.
Final dues letter (document signed by the employee confirming that they have been paid all their final dues)
Upon employee request:

  • Written statement of the reason for termination. To be provided within 21 days from the date of request.
  • Employment reference letter. To be provided within 21 days from the date of request.

Final payment timing and compliance

Final payment deadline

All final payments must be paid within 21 calendar days of the employee’s termination date.

Penalty

Late payments incur a daily penalty equal to the employee’s wage

Repatriation flight

If applicable, the employer can book the flight or reimburse the employee

Mutual Termination Agreements (MTAs) in the UAE

MTA is a voluntary agreement signed by the employer and employee to mutually terminate an employment contract.

Notice

Form

The agreed terms of the mutual termination must be documented in writing, through a mutual termination agreement (MTA) signed by both parties.

Notice Period

Not mandatory, as the termination is mutually agreed. Parties may agree on a termination date that is immediate or in the future.

Waiver of notice

Since termination is consensual, both parties can waive any notice period in the agreement.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked more than one year, calculate gratuity as:

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer).

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary & Leave

Included in MTA:

  • Final salary up to termination date
  • Accrued but unused leave pay
  • Prorated bonus/commission/expenses (if applicable and agreed)

Termination Documentation

Mutual Termination Agreement, signed by both parties, outlining:

  • Termination date
  • Final entitlements
  • Return of company property
  • Non-disparagement / confidentiality clauses (optional)

Upon employee request:

  • Termination date

Final payment timing and compliance

Final payment deadline

All final dues must be paid within 21 calendar days of termination date.

Penalty

Failure to pay within 21 days attracts a daily penalty equal to the employee’s daily wage.

Repatriation flight

Must be booked or reimbursed unless the employee obtains new sponsorship within 30 days post-termination.

Offboarding process for the end of fixed-term contracts in the UAE

Form

Written notice of non-renewal. Either through an email or signed letter

Notice Period

No notice period required.

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance/Gratuity

If the employee has worked more than one year, calculate gratuity as

  • 21 days' basic wage for each of the first five years; and
  • 30 days' basic wage for each additional year thereafter
  • If an employee has multiple successive fixed-term contracts, add all periods together when calculating total service for gratuity purposes

Exception: If the employee joined a pension or savings scheme at the start of their employment, they aren’t entitled to any end of service gratuity (unless otherwise agreed by the employer)

Other Benefits

Repatriation Flight

If the employee’s UAE residency visa is being cancelled and they don’t secure new sponsorship within 30 days, the employer must provide a one-way flight to the employee’s home country or another agreed destination. This ensures the employee can legally leave the country without extra cost.

Prorated Salary

Compensation for days worked until last working date.

Accrued but unused leave pay

Payment for unused annual leave.

Pro-rated bonuses/commissions/expenses

Any due and unpaid amounts, subject to contract terms.

Termination Documentation

Notice of non-renewal of contract
Final dues letter (document signed by the employee confirming that they have been paid all their final dues)

Upon employee request:

  • Employment reference letter. To be provided within 21 days from date of request.

Final payment timing and compliance

Final payment deadline

All final payments must be paid within 21 calendar days of the employee’s last working date.

Penalty

If an employer fails to comply with this, they will be required to pay a penalty to the employee equal to the employee’s daily wage for each calendar day that the employer is in arrears of its payment obligations.

Repatriation flight

Must be booked or reimbursed unless the employee obtains new sponsorship within 30 days post-termination.

Visa and immigration compliance

If the employee is sponsored by RemotePass, their UAE residency visa and work permit must be canceled.

The employee has 30 days from cancellation to either:

  • Find new UAE sponsorship; or
  • Exit the UAE.
  • Visa cancellation can only proceed once the employee has received all final payments.
Key Elements of an Employment Contract in United Arab Emirates
When drafting an employment contract for employees in United Arab Emirates, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Finally, a payroll partner that actually gets the UAE.

Whether you're navigating ADGM regulations, managing DEWS contributions, or onboarding talent in a free zone, our local specialists are here to guide you. 

We handle the complexity so you can build your team with confidence.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including United Arab Emirates.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Get tailored guidance on entity-free hiring, DEWS, payroll compliance, and more.

FAQs

Got Questions? Find Answers Here

Do I need a local entity to hire in the UAE?

No. You can use an Employer of Record (EOR) like RemotePass to hire compliantly without setting up a local company.

Is there income tax for employees in the UAE?

No, the UAE doesn’t levy personal income tax on salaries.

Are health benefits mandatory in the UAE?

Yes, employers must provide health insurance in several Emirates including Dubai and Abu Dhabi. In other Emirates, it’s not legally required, but many employers still offer coverage voluntarily to attract talent.

Can I terminate an employee without cause in the UAE?

Yes, you can terminate an employee without cause, but you must follow the contractually agreed notice period and pay any end-of-service gratuity or other owed amounts.

What’s the difference between EOSB and DEWS in the UAE?

EOSB is about the benefits employees receive at the end of their service, while DEWS is a tool to monitor and enforce proper wage payments throughout employment.

What happens after a visa is cancelled in the UAE?

The employee has 30 days to find a new sponsor or exit the country. Employers must ensure that they communicate this timeline and settle final payments before the visa cancellation.

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