Remote’s guide to employing in United Arab Emirates.
United Arab Emirates dirham
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
The United Arab Emirates is an elective monarchy of seven emirates crested on the Arabian peninsula.
Since oil was first discovered in 1958, the nation has rocketed to rapid growth in infrastructure, healthcare, and technology, and a tourism industry that sees over 20 million tourists visiting Dubai and Abu Dhabi.
The UAE, particularly Dubai, Abu Dhabi, and Sharjah, are home to a huge population of expats. Some of the world’s most talented professionals call the Emirates home and a significant portion of these workers have experience working with multi-nationals. Global employers will find a haven of talent on this small slice of Arabian land.
United Arab Emirates dirham
Ease of doing business
Cost of living index
VAT - standard rate
GDP - real growth rate
To employ in the United Arab Emirates, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in UAE can get complicated, especially without established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in UAE quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Provisions for employee protections and workers’ rights are spelled out in the Labour Law of 1980 and the Federal Law No. 24 of 1981. Employees in the United Arab Emirates enjoy protections against discrimination based on age, religion, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in the United Arab Emirates.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in United Arab Emirates are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Learn how employment taxes affect your payroll and your employees’ paychecks in the United Arab Emirates.
12.5%: Social Security (basic social security plus housing allowance, charged on a minimum monthly salary of 1,000 AED and capped at 50,000 AED, i.e., $13,612.89)
5%: Social security (charged to Emiratis alone; foreigners exempt)
After the first year of employment, employees are entitled to a minimum of 30 days paid annual leave (equal to approximately 22 working days), with allowances to be paid before the vacation commences.
There are 7 public holidays lasting for 14 days annually.
After completing three months of employment, workers are entitled to 90 days of paid sick leave annually, provided a medical report is provided within the first 72 hours of illness.
The first 15 days of sick leave are fully paid at a rate of 100% of the employee’s normal wages, dropping to 50% from the 16 until the 45th day. Any sick leave exceeding 45 days is unpaid.
Female employees are entitled to 45 days of fully paid maternity leave. Employees who have been employed for less than a year are entitled to just half the maternity benefits.
A male employee is entitled to up to 5 working days of paternity leave with full pay, which must be taken within six months from the birth date of the child.
Hajj leave: Employees can take up to 30 days of unpaid leave to complete a pilgrimage to Mecca.
Employee contracts can only be terminated according to terms spelled out in the Emirati Labour Law, and the relevant authorities must be informed accordingly.
For unlimited term employment contracts, the minimum notice period is 1 month. The statutory maximum notice period is 3 months.
During the probationary period, either party may terminate the employment without notice unless a probationary notice period is expressly provided in the employee's contract.
For fixed term contracts there is no obligation to provide a notice period. However, upon renewal, a notice period of between 1 -3 months must be provided for.
Employees who have been employed for at least a year are entitled to 21 working days’ pay for every year of employment and 30 days’ wages for each additional year, capped at two years’ pay.
Probation in the United Arab Emirates lasts anywhere from three to six months.