- Country Guide
- United Arab Emirates
United Arab Emirates
Last Update by Federico, 14 Jan 2025
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Exchange Rate
19 Apr 2025
Cost of Living
Indicative value for a working adult in a city: Dubai
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (AED) |
|---|---|
| McDonalds Set Meal | 35 |
| Monthly Train and Bus Tickets | 300 |
| 3 Bedrooms Rental (City Center) | 15,959 |
| 3 Bedrooms Rental (Outskirt) | 10,346 |
Current Inflation Rate
3%
Wage
Minimum Wages
- No national minimum wage
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (AED) |
|---|---|
|
Entry-Level
Fresh Graduate
|
5,000 |
|
Mid-Level
5 Years
|
7,500 |
|
Experienced & Managerial Level
10 Years
|
10,000 |
|
Specialized & Senior-Level
15 Years
|
15,000 |
Annual Salary Growth
4.5%
Statutory Contribution
Social security contributions law in UAE may differ slightly depending on the location of the company (either Mainland or Free zones).
Contribution should be paid before 15th of the following month to GPSSA
The salary should be paid through WPS. In Jafza, if more than 80% payroll was not paid by WPS, the WPS account can be blocked, employer needs to pay 2,500 AED penalty each month
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security |
12.5%, capped at 6,250 AED 15% in Abu Dhabi |
11% | All eligible Emiratis and GCC nationals based on monthly minimum of 1,000 AED and maximum of 70,000 AED. |
| EOS/ Gratuity |
5.83% if work period under 5 years 8.33% for over 5 years of employment |
Voluntary contribution | All staff |
| Unemployment Insurance Plan (for both mainland and free zones) | - |
5 AED - monthly salary under 16,000 AED 10 AED - monthly salary over 16,000 AED (paid by the worker) |
All staff excluding investors, domestic workers, temporary workers, under 18 and working pensioners |
| Unemployment Insurance | 100-200 AED per month | - | For Mainland employee |
| Emiratisation Fee |
550 - 720 AED per month, depends on emiratisation rate (penalty for up to 6,000 AED for missing quota) |
- | All foreigners |
Other Benefit
Other common employment benefits in United Arab Emirates include:
- Additional Health Insurance: About 120 USD per month for non-citizens. Emirates citizens' premium provided by the government and taxed in USD
- Housing Allowance: could vary according to employers and job title, usually around 25 to 30% of employee's basic salary
- Transportation Allowance: common practice for expatriates, especially those who live far from the office. Usually around 10% of the employee’s basic salary
- Airfare tickets: common benefit to expats is an annual round-trip airfare tickets to home country, around AED1,500 - 3,500 per year
- Employer usually provide flight ticket to expats when employment contract end.
Income Tax
Residents
- There is no federal or Emirate-Level personal income tax in the UAE.
Working Hours
Statutory
48 Hours or 8 hours a day for 6 days
From 1st Jan 2022, the weekend changed to Saturday and Sunday from Friday and Saturday. But employer and employee have right to choose which day for weekend.
Typical practice
48 Hours
Monday - Friday or Sunday - Thursday (depending on the internationality of the company)
(during Ramadan, working hours reduced by 2 hours daily)
Overtime
Overtime cannot be more than 2 hours a day.
- Workday day: Paid at 125% of monthly salary
- Night work: 22:00-04:00: 150% of monthly salary
- Rest days: 150% of monthly salary or 1 day leave in lieu
Employment Contract
Fixed-Term
As 2nd of Febuary 2022 the employment contract in UAE must all be fixed term contracts. If the fixed term contract was signed before, it should be still valid.
Contract Format
Written, in Arabic and English. Arabic part will be the legal one. The contract should be issued by the government in Mainland and some freezone like Jafza. Digital version can be accepted only in Mainland. Hard copy is required in other zone.
Payroll Currency
AED is the most common choice, it is also possible to pay employees in USD, EUR or GBP if it is international companies or senior expatriates working with international contracts.
Probation
Typically 1 month, cannot exceed 6 months.
Contract Period
Cannot be longer than 3 years and last as long as the residency visa.
Can be renewed, if both parties agree. If the contract expires, the new term cannot be longer than the original.
Termination
During the contract period, employee can resign or be terminated. If the reason for termination is unfair, the employee can receive additional compensation
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - Resignation by staff to join a new company: 1 month, or the new employer compensates the current employer for recruitment costs - Resignation by staff leaving the UAE and role: 14 days’ written notice | - Termination by employer: 14 days’ written notice | - Termination by employer: 14 days’ written notice |
| Notice Period - Regular | - In DIFC (Dubai International Financial Center): 3 months - In ADGM (Abu Dhabi Global Market): 1 month - In Mainland: 30-90 days | - In DIFC (Dubai International Financial Center): 3 months - In ADGM (Abu Dhabi Global Market): 1 month - In Mainland: 30-90 days | - In DIFC (Dubai International Financial Center): 3 months - In ADGM (Abu Dhabi Global Market): 1 month - In Mainland: 30-90 days |
| Severance Pay | - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary | - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary | - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary |
Public Holiday
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 31 Mar - 02 Apr | Eid al-Fitr |
| 06 Jun | Arafat Day |
| 07 Jun - 08 Jun | Eid al-Adha |
| 27 Jun | Hijri New Year |
| 05 Sep | Prophet Muhammad’s Birthday |
| 01 Dec | Commemoration Day, |
| 02 Dec - 03 Dec | National Day |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
If service period is under 6 months, 2 calendar days per month If finished one year service, 30 calendar days per year |
- The entitlement includes the public holidays - Prorated for part time employees |
| Sick Leave |
90 calendar days per year. 100% payment: first 15 days 50% payment: next 30 days The rest should be unpaid |
All staff after probation |
|
Maternity Leave |
90 calendar days |
All expectant mothers with at least 1 year of service |
| Extend Maternity Leave | 45 calendar days | Additional leave if they experience pregnancy-related complications or illnesses that prevent them from resuming work |
| Parental Leave | 5 working days | All eligible parents in the private sector for children up to 6 months old |
| Hajj and Umrah (pilgrimage) Leave | up to 30 calendar days | Only for muslim staff, to be used once in the employment lifecycle |
| Compassionate Leave |
3 working days – Death of a parent, sibling, child, or grandparent 5 working days – Death of a spouse |
All staff in the private sector |
| Study Leave | Up to 10 working days per year | All staff with 2 years' service with the same employer in the private sector |
Reference
- https://www.numbeo.com/cost-of-living/in/Dubai
- https://taxsummaries.pwc.com/united-arab-emirates/individual/other-taxes
- https://u.ae/en/information-and-services/jobs/working-in-uae-government-sector/pensions-and-social-security-for-uae-citizens
- https://u.ae/en/information-and-services/jobs/insurance/unemployment-insurance-scheme
- https://www.dghr.gov.ae/en/pages/Services.aspx
- https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector/working-hours
- https://gpssa.gov.ae/en/Pages/default.aspx#/
- https://www.tax.gov.ae/en/
- https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector/types-of-leaves-and-entitlements-in-the-private-sector
- https://u.ae/en/information-and-services/jobs/insurance/unemployment-insurance-scheme
- https://www.pwc.com/m1/en/services/tax/me-tax-legal-news/2023/uae-updates-on-the-social-security-scheme-for-emirates-employees.html
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Contact UsCountry Guide - United Arab Emirates
Last updated: 14 Jan 2025
Exchange Rate
Currency (AED)
- 1 CNY = 0.185 AED
- 1 USD = 1.32 AED
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Dubai
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (AED) |
|---|---|
| McDonalds Set Meal | 35 |
| Monthly Train and Bus Tickets | 300 |
| 3 Bedrooms Rental (City Center) | 15,959 |
| 3 Bedrooms Rental (Outskirt) | 10,346 |
Current Inflation Rate
3%
Wage
Minimum Wages
- No national minimum wage
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (AED) |
|---|---|
|
Entry-Level
Fresh Graduate
|
5,000 |
|
Mid-Level
5 Years
|
7,500 |
|
Experienced & Managerial Level
10 Years
|
10,000 |
|
Specialized & Senior-Level
15 Years
|
15,000 |
Annual Salary Growth
4.5%
Statutory Contribution
Social security contributions law in UAE may differ slightly depending on the location of the company (either Mainland or Free zones).
Contribution should be paid before 15th of the following month to GPSSA
The salary should be paid through WPS. In Jafza, if more than 80% payroll was not paid by WPS, the WPS account can be blocked, employer needs to pay 2,500 AED penalty each month
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security |
12.5%, capped at 6,250 AED 15% in Abu Dhabi |
11% | All eligible Emiratis and GCC nationals based on monthly minimum of 1,000 AED and maximum of 70,000 AED. |
| EOS/ Gratuity |
5.83% if work period under 5 years 8.33% for over 5 years of employment |
Voluntary contribution | All staff |
| Unemployment Insurance Plan (for both mainland and free zones) | - |
5 AED - monthly salary under 16,000 AED 10 AED - monthly salary over 16,000 AED (paid by the worker) |
All staff excluding investors, domestic workers, temporary workers, under 18 and working pensioners |
| Unemployment Insurance | 100-200 AED per month | - | For Mainland employee |
| Emiratisation Fee |
550 - 720 AED per month, depends on emiratisation rate (penalty for up to 6,000 AED for missing quota) |
- | All foreigners |
Other Benefit
Other common employment benefits in United Arab Emirates include:
- Additional Health Insurance: About 120 USD per month for non-citizens. Emirates citizens' premium provided by the government and taxed in USD
- Housing Allowance: could vary according to employers and job title, usually around 25 to 30% of employee's basic salary
- Transportation Allowance: common practice for expatriates, especially those who live far from the office. Usually around 10% of the employee’s basic salary
- Airfare tickets: common benefit to expats is an annual round-trip airfare tickets to home country, around AED1,500 - 3,500 per year
- Employer usually provide flight ticket to expats when employment contract end.
Income Tax
Residents
- There is no federal or Emirate-Level personal income tax in the UAE.
Working Hours
Statutory
48 Hours or 8 hours a day for 6 days
From 1st Jan 2022, the weekend changed to Saturday and Sunday from Friday and Saturday. But employer and employee have right to choose which day for weekend.
Typical practice
48 Hours
Monday - Friday or Sunday - Thursday (depending on the internationality of the company)
(during Ramadan, working hours reduced by 2 hours daily)
Overtime
Overtime cannot be more than 2 hours a day.
- Workday day: Paid at 125% of monthly salary
- Night work: 22:00-04:00: 150% of monthly salary
- Rest days: 150% of monthly salary or 1 day leave in lieu
Employment Contract
Fixed-Term
As 2nd of Febuary 2022 the employment contract in UAE must all be fixed term contracts. If the fixed term contract was signed before, it should be still valid.
Probation
Typically 1 month, cannot exceed 6 months.
Termination
During the contract period, employee can resign or be terminated. If the reason for termination is unfair, the employee can receive additional compensation
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - Resignation by staff to join a new company: 1 month, or the new employer compensates the current employer for recruitment costs - Resignation by staff leaving the UAE and role: 14 days’ written notice | - Termination by employer: 14 days’ written notice | - Termination by employer: 14 days’ written notice |
| Notice Period - Regular | - In DIFC (Dubai International Financial Center): 3 months - In ADGM (Abu Dhabi Global Market): 1 month - In Mainland: 30-90 days | - In DIFC (Dubai International Financial Center): 3 months - In ADGM (Abu Dhabi Global Market): 1 month - In Mainland: 30-90 days | - In DIFC (Dubai International Financial Center): 3 months - In ADGM (Abu Dhabi Global Market): 1 month - In Mainland: 30-90 days |
| Severance Pay | - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary | - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary | - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary |
Public Holiday
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
If service period is under 6 months, 2 calendar days per month If finished one year service, 30 calendar days per year |
- The entitlement includes the public holidays - Prorated for part time employees |
| Sick Leave |
90 calendar days per year. 100% payment: first 15 days 50% payment: next 30 days The rest should be unpaid |
All staff after probation |
|
Maternity Leave |
90 calendar days |
All expectant mothers with at least 1 year of service |
| Extend Maternity Leave | 45 calendar days | Additional leave if they experience pregnancy-related complications or illnesses that prevent them from resuming work |
| Parental Leave | 5 working days | All eligible parents in the private sector for children up to 6 months old |
| Hajj and Umrah (pilgrimage) Leave | up to 30 calendar days | Only for muslim staff, to be used once in the employment lifecycle |
| Compassionate Leave |
3 working days – Death of a parent, sibling, child, or grandparent 5 working days – Death of a spouse |
All staff in the private sector |
| Study Leave | Up to 10 working days per year | All staff with 2 years' service with the same employer in the private sector |
Reference
- https://www.numbeo.com/cost-of-living/in/Dubai
- https://taxsummaries.pwc.com/united-arab-emirates/individual/other-taxes
- https://u.ae/en/information-and-services/jobs/working-in-uae-government-sector/pensions-and-social-security-for-uae-citizens
- https://u.ae/en/information-and-services/jobs/insurance/unemployment-insurance-scheme
- https://www.dghr.gov.ae/en/pages/Services.aspx
- https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector/working-hours
- https://gpssa.gov.ae/en/Pages/default.aspx#/
- https://www.tax.gov.ae/en/
- https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector/types-of-leaves-and-entitlements-in-the-private-sector
- https://u.ae/en/information-and-services/jobs/insurance/unemployment-insurance-scheme
- https://www.pwc.com/m1/en/services/tax/me-tax-legal-news/2023/uae-updates-on-the-social-security-scheme-for-emirates-employees.html
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000