United Arab Emirates

Last Update by Katie, 07 Jun 2024

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Exchange Rate

13 Jun 2024

 

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) 15,027
3 Bedrooms Rental (Outskirt) 10,462

Current Inflation Rate

3.3%

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
10,000
Mid-Level
5 Years
15,000
Experienced & Managerial Level
10 Years
25,000
Specialized & Senior-Level
15 Years
40,000

Annual Salary Growth

5.5%

Statutory Contribution

Contribution should be paid before 15th of the following month.

Country Level

Type Employer Rates Employee Rates Notes
Social Security 12.5%, capped at 6,250 AED
15% in Abu Dhabi
5% All eligible Emiratis and GCC nationals based on monthly minimum of 1,000 AED and maximum of 50,000 AED.
DEWS (DIFC Employee Workplace Savings Plan) 5.83% if work period under 5 years
8.22% if work period over 5 years
Voluntary contribution Only for the employer in DIFC
Unemployment Insurance Plan - 5 AED - monthly salary under 16,000 AED
10 AED - monthly salary over 16,000 AED
All staff excluding investors, local workers, temporary workers, teenagers under 18 and working pensioners

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.

Income Tax

Residents

  • Tax period: 1st January - 31st December
    Filing Due Date: 30th September
  • No personal income tax.

Working Hours

Statutory

48 Hours
8 hours a day, 6 days a week

Typical practice

48 Hours
Monday - Friday
(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

Contracts issued after 1 January 2024 must be fixed-term, 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.

Probation

Typically 1 month, cannot exceed 6 months.

Termination

Contracts must be written

  • Notice during probation:
    - Termination by employer: 14 days’ written notice.
    - Resignation by staff to join new company: 1 month notice, or the new employer compensates the current employer for recruitment costs.
    - Resignation by staff leaving the UAE and role: 14 days’ written notice, If staff return to the UAE within 3 months of leaving, the new employer compensates the previous employer for recruitment costs.
  • Notice Periods:
    Employers based in DIFC (Dubai International Financial Center):
    - Under 3 months' service: 1 week
    - 3 months < Service year 5 years - 3 months
    For the employer based in ADGM (Abu Dhabi Global Market):
    - Over 3 months' service: 1 month
  • Severance:
    - 1 - 5 years' service: 21 days salary for each year
    - 5+ years' service : 30 days salary for each year, no more than 2 years' salary in total

Public Holiday

14 days

Country Level

Date Name
01 Jan New Year's Day
08 Apr Eid AI Fitr
15 Jun Arafat Day
15 Jun - 18 Jun Eid Al Adha
08 Jul Islamic New Year's Day
15 Sep The Prophet's Birthday
01 Dec Commemoration Day
02 Dec National Day

Leave

Leave Type Entitlement Notes
Annual Leave Up to 30 calendar days All staff with 1 year service in the private sector
Sick Leave 90 working days per year All staff after probation (3 months)
Maternity Leave
Nursing Breaks
60 calendar days
1 hour per day
All expectant mothers
All mothers up till child is 6 months
Parental Leave 5 working days All eligible parents in the private sector for children up to 6 months old
Hajj and Umrah (pilgrimage) Leave 30 calendar days All 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 All staff with 2 years' service with the same employer in the private sector

Reference

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