Remote Logo
English
Remote Logo
English
Pricing
Book Demo
×

Book a demo, see Remote in action


Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

 

Payroll services in the United Arab Emirates

The United Arab Emirates (UAE) has a thriving economy with key industries in oil and gas, finance, tourism, and technology. Employers in the UAE must comply with national labor laws and regulations to ensure proper payroll management, including end-of-service gratuity, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in the UAE

Employers in the UAE must adhere to national payroll regulations concerning wages, benefits, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

  • Minimum wage: There is no officially mandated minimum wage in the UAE, but wages must align with labor contracts and industry standards.
  • Payroll frequency: Salaries are typically paid monthly.
  • Standard working hours: The normal workweek in the UAE is 48 hours, typically spread over six days, with Friday being a rest day in most sectors.
  • Overtime: Employees are entitled to overtime pay at 125% of the regular wage for extra hours and 150% for work performed between 9:00 PM and 4:00 AM. Work on public holidays is compensated at 200%.

Taxation and social security contributions

  • Personal income tax: The UAE does not impose personal income tax on employees.
  • Employer contributions:
    • Pension Contributions (for UAE and GCC nationals only): Employers contribute 12.5% to 15% of the employee’s gross salary.
    • Workplace Insurance: Employers are required to provide workplace insurance and other employment benefits.
  • Employee contributions:
    • Pension Contributions (for UAE and GCC nationals only): Employees contribute 5% of their gross salary.
  • Corporate tax: As of 2023, the UAE introduced a corporate tax rate of 9% for businesses earning over AED 375,000 annually.
  • Tax reporting: Employers must ensure compliance with the UAE’s Wage Protection System (WPS) and Ministry of Human Resources and Emiratisation (MOHRE) regulations.

Payroll compliance in UAE

  • Employment contracts must be provided in writing and specify key details such as salary, working hours, and job responsibilities.
  • Payroll deductions: Employers must ensure compliance with pension contributions for UAE and GCC nationals and mandatory insurance requirements.
  • End-of-Service Gratuity: Expatriate employees are entitled to end-of-service benefits based on their length of service, typically calculated at 21 days’ pay per year for the first five years and 30 days’ pay for each additional year.
  • Employers must stay updated on changes to UAE labor laws and payroll regulations to avoid penalties.

Run payroll in the UAE with Remote

Managing payroll in the UAE requires careful attention to labor laws, end-of-service benefits, and compliance with the Wage Protection System (WPS). Employers must stay informed about wage laws, pension contributions, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.