Talent Wiki - United Arab Emirates
Your quick guide on talent and labor compliance norms in United Arab Emirates
Capital
Abu Dhabi
Currency
United Arab Emirates Dirham (AED)
Languages
Arabic
Payroll Frequency
Monthly
GDP per Capita
$50,349
Employer Tax
12.5%
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
Local: 1
World : 1941
New York University Abu Dhabi
RANKING
Local: 2
World : 2303
Higher Colleges of Technology
RANKING
Local: 3
World : 2372
American University of Sharjah
RANKING
Local: 4
World : 2419
University of Sharjah
RANKING
Local: 5
World : 2813
Salary Data
Below mentioned are the most common jobs in the United Arab Emirates with the average salary range;
| Job Title | Average Monthly Salary (AED) | Average Monthly Salary (USD) |
| Sales Manager | 37,400 | 10,183 |
| Project Manager | 25,400 | 6,915 |
| Developer/Programmer | 21,500 | 5,853 |
| Business Analyst | 25,200 | 6,861 |
| Financial Analyst | 27,800 | 7,569 |
| Graphic Designer | 12,800 | 3,485 |
| Accountant | 14,800 | 4,030 |
Talent Sourcing Tips
Top Local Job Boards:
Gulftalent, Laimoon, Monstergulf
Number of LinkedIn users:
4,974,000
Top Recruitment Agencies:
Employing in UAE
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.
Minimum Wage
According to the UAE labor rule, the minimum wage ranges from AED 400 to AED 500 depending on
Overtime Pay
If an employee is required to work beyond the normal working hours, the person will be entitled to that days’ wage plus 25% of the basic salary for the hours worked. If the overtime is between 10 PM and 4 AM, it will be 50% of the basic salary.
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
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
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.
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.
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.
