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

$52,406.86

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 in United Arab Emirates are as follows:

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:

 Bayt, BAC Middle East, Hays, Nadia

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 No. of Days Holiday
1 January 1 New Year’s Day
8 April 3 Eid Al Fitr
15 June 1 Arafat Day
16 June 3 Eid Al Adha
8 July 1 Islamic New Year
15 September 1 The Prophet’s Birthday
1 December 1 Commemoration Day
2 December 2 UAE National Day

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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration