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United Arab Emirates

Basic Economic Summary

Overview

  • Local Languages: Arabic, English, Hindi, Urdu
  • Capital: Abu Dhabi
  • Currency: United Arab Emirates Dirham
  • Population : 9.77 million
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): $43,103.32
  • Exchange Rate (AED/USD): 0.27
  • PISA Ranking (2018): 47
  • Number of University Graduates (2019): 138,27,000

Local Universities

Top Local Universities

University No. of graduates Rankings
United Arab Emirates University 14,387 Ranking in UAE: 1, World Ranking: 284
American University of Sharjah 15,637 Ranking in UAE: 4, World Ranking: 348
Khalifa University 1300 Ranking in UAE: 6, World Ranking: 211
Zayed University 9585 Ranking in UAE: 7 World Ranking: 701
University of Sharjah 16,188 Ranking in UAE: 3, World Ranking: 601

Salary Data

Average Salary of Jobs (Per Month)

Job Title Salary Range (in AED) Salary Range (in USD)
Technical Product Engineer 10,300 - 30,200 251.05 - 669.88
Software Developer 9,370 - 30,700 247.25 - 1252.85
Data Analyst 8,370 - 28,100 230.93 - 767.39
UX Designer 5,900 – 20,400 230.93 - 767.39
Project Manager 13,700 – 38,300 274.65 - 943.66
Sales Executive 5,670 – 19,600 246.54 – 803.3
Chief Accountant 8,470 - 45,400 227.11 – 716.03

More information about average salaries in UAE can be found on SalaryExplorer.

Talent Sourcing Tips

Taxes

Employer Payroll Tax

Employers need to contribute 12.5% of the wages to social security.

Employee Payroll Tax

Employees need to contribute 5% of the wages to social security.
No personal income tax in UAE

Minimum Wage & Payroll

Minimum Wage

Minimum wage on a monthly basis is determined by the level of education attained:

Level of Education Attained Minimum Wage per month
No high school certificate AED300
High school graduate AED400
College certificate or more AED500

Payroll Cycle

Workers are paid on a monthly basis on a due date and no later than 10 days after the end of each salary period. In the absence of such periods mentioned in the contract, the employer must pay the employees every 14 days.

Bonus

13th month salary
Dubai employers do not offer 13th month bonuses.

Working Hours & Statutory Leave

Working hours

The maximum working hours for private sector UAE employees is 48 hours a week or 8 hours a day while public sector UAE employees are 7 hours a week. During the holy month of Ramadan, working hours are reduced by 2. Working hours are either between 8:30am or 9am to 5:30pm to 6pm.

Overtime pay

Overtime will demand employers to pay the employees an amount equal to a pay equal to normal working hours’ remuneration with an additional 25% of the pay. If the overtime exceeds 9pm, the pay could be increased by 50%

Public Holidays

There are a total of 16 public holidays in UAE. The list of public holidays can be found here.

Leave

Annual Paid Leave

Employees are allowed an annual leave of 2 days a month on completing six months of service and 30 days after they have completed one year of service.

Sick Leave

An employee is able to take 90 days of paid leave per year after a period of three months of employment. The salary is paid as follows:

  • First 15 days -> full pay
  • Next 30 days -> half pay
  • Next 45 days -> no pay

Parental Leave

Private sector employees are given a leave of 5 working days from the birth of the child to six months. Parental leave is a paid leave and can be used by both mothers and fathers.

  • Maternity Leave

A female employee is granted maternity leave of three months with full salary. After 4 months of resuming work, she is also entitled to a reduction in working hours by 2 hours to nurse her child which is fully paid for.

  • Paternity Leave 

A male employee is entitled to a leave of three days during the month of the delivery of the child if the child is born in the UAE.

Offboarding & Termination

Termination Process

The employee contract can be terminated in the following cases:

  • By mutual consent to both parties to terminate the contract provided that the employee’s consent is made in writing.
  • On expiry of the period specified in the contract
  • At the discretion of either party provided the laws regarding warnings for termination are fully complied with.

Notice Period

The employer or employee who wishes to terminate the contract must give a notice in writing at least 30 days prior to termination.

Severance Pay

A worker who has completed one or more years of service are given a severance pay. It is calculated as follows: 

  • 21 days wage for the first five years service
  • 30 days wage for each additional year of service provided in a way that the pay should not exceed over two year’s wage.

Probation period

The employee probation period in UAE is usually set from three to six months.

VAT

5%

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