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
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
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
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
  • 1 Jan: New Year's Day
  • 30 Apr: Eid al-Fitr Holiday
  • 1 May: Eid al-Fitr Holiday
  • 2 May: Eid al-Fitr
  • 3 May: Eid al-Fitr Holiday
  • 4 May: Eid al-Fitr Holiday
  • 8 Jul: Arafat Day
  • 9 Jul: Eid al-Adha
  • 10 Jul: Eid al-Adha Holiday
  • 11 Jul: Eid al-Adha Holiday
  • 30 Jul: Islamic New Year
  • 8 Oct: Prophet Muhammad's Birthday
  • 1 Dec: Commemoration Day
  • 2 Dec: National Day
  • 3 Dec: National Day Holiday

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

The UAE offers a dynamic business environment with a diverse talent pool. RemotePass simplifies the process of hiring and managing employees in the UAE, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

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

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

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
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
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
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
  • 1 Jan: New Year's Day
  • 30 Apr: Eid al-Fitr Holiday
  • 1 May: Eid al-Fitr Holiday
  • 2 May: Eid al-Fitr
  • 3 May: Eid al-Fitr Holiday
  • 4 May: Eid al-Fitr Holiday
  • 8 Jul: Arafat Day
  • 9 Jul: Eid al-Adha
  • 10 Jul: Eid al-Adha Holiday
  • 11 Jul: Eid al-Adha Holiday
  • 30 Jul: Islamic New Year
  • 8 Oct: Prophet Muhammad's Birthday
  • 1 Dec: Commemoration Day
  • 2 Dec: National Day
  • 3 Dec: National Day Holiday

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.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في United Arab Emirates
مع ريموت باس

The UAE offers a dynamic business environment with a diverse talent pool. RemotePass simplifies the process of hiring and managing employees in the UAE, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

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

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.