United Arab Emirates Dirham
Hire employees in the United Arab Emirates. No entity needed.
Usually, to hire in the United Arab Emirates, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
the United Arab Emirates also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in the United Arab Emirates quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for the United Arab Emirates
built right in
Deel allows you to provide localized benefits for employees in the United Arab Emirates within minutes. All in one manageable online dashboard.
- Health Insurance
- Private Health Insurance (ADNIC)
- Workman’s Compensation Insurance
Our quickstart guide to hiring in the United Arab Emirates
Navigate the tabs below to learn everything you need to know about hiring an employee in the United Arab Emirates
Minimum Wage Requirements
Individual Income Tax
For UAE and GCC nationals,
- Social security contributions: 12.5%* for UAE nationals
- Workmen/Employee Compensation Insurance: 0.06% of the employee’s monthly gross salary, charged monthly
For expatriated in the UAE, the employer cost is dependent on visa requirements.
- Medical Insurance - Costs vary from AED 7,827 to AED 36,258, depending on the employee's age, gender and marital status.
- End of Service Benefit Accrual - 21 days to 30 days of basic salary per year ( depends on service period/length)
- Visa - 15,431 AED for Standard Visa and 19,609 for Golden Visa
- Workmen/Employee Compensation Insurance - 0.06% of the employee’s monthly gross salary, charged monthly
*The cost may vary for GCC nationals.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Sunday to Thursday. During Ramadan work hours are reduced to 6 hours per day.
Overtime payment is mandatory for non-managerial positions. Managerial staff may take a day off in lieu if they have worked additional hours or days. Hours outside of standard work hours are considered overtime. Employees can not work more than a maximum of 2 hours of overtime per day or 144 hours in total over a 3 week period. For additional hours, employees are paid:
General Overtime - 125% of the hourly rate
Between 10pm and 4am - 150% of the hourly rate
Weekends and public holidays - 150% of the hourly rate
Employees are entitled to paid sick leave for up to 90 days. The requirement to grant this leave is that the employee worked at least 3 months for the employer after the probation period has ended. This leave is paid at different rates and by the employer:
|0 - 15 days||100% of base salary||Employer|
|15 - 45 days||50%||Employer|
|45 - 90 days||0%||N/A|
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Employers can unilaterally terminate contracts at any time as long as proper legal notice requirements and compensation are followed. Terminations without notice must be for cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer:
- Without cause providing notice and required compensation
- For cause without notice
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
- By the expiration of the contract
Severance for Employees
In the UAE, all employees who are terminated, unless terminated under Article 120 of the Labor Law, are entitled to severance pay. Severance pay is 21 working days of salary for each of the first five years of services and an additional 30 working days per year of service over five years up to a maximum of 2 years based compensation.
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Employees in the United Arab Emirates who work five days per week are entitled to a minimum of 30 calendar days of vacation per year. This accrues at a rate of 2.5 days per month. Employees can only take vacation days after 6 months of employment at a rate of 2 days per month during the rest of their first year of employment. Once the employee surpasses 12 months of employment, they are entitled to the minimum of 30 calendar days of vacation per year.
There are 15 regular public holidays in the United Arab Emirates. Public holidays include both fixed-date and moveable holidays that change annually.
New Year’s Day: January 1
Eid al-Fitr (4 days)
Eid al-Adha (4 days)
Islamic New Year
Prophet Muhammad’s Birthday
Commemoration Day: December 1
National Day: December 2
National Day: December 3
Onboarding can vary according to the type of visa the employee will require. Onboarding with a visa: the average time is 30 business days. Onboarding nationals is a minimum of 3 business days after SOW is signed, pending deposit payment and submission of all required employee information.
Employment Contract Details
Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.
All requested contracts must have a deposit paid in order to execute the visa process - UAE visa have a liability on Deel since we must pay the employee once the Visa is issued - accordingly if the client decided to cancel the contract after the visa is granted we will be at risk. A contract must include:
length of the employment
monthly gross salary details, with breakdown
probation period and notice period details
annual leave days
Employees can be hired on limited and fixed term contracts.
The maximum length of a contract can be 10 years, and it can be renewed for the same period of time.
Indefinite term contracts are not allowed.
Contract backdating is not allowed.
Hiring in the United Arab Emirates, hassle-free
With Deel, your business can easily hire employees in the United Arab Emirates. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in the United Arab Emirates?View our Employee Cost Calculator