The UAE offers a large expat talent market and low direct employer taxes, with an end-of-service gratuity in place of a pension for foreign staff. All-in employer cost runs around 1.08x the gross salary. Here is what to know before your first UAE hire.
Employment is governed by the 2021 Labour Law (Federal Decree-Law 33), which moved all private-sector staff to limited-term contracts and requires salaries to be paid through the Wage Protection System. Nationals are on pension; expats accrue gratuity.
There is no income tax and no social security for expatriate employees. The main employer cost is the end-of-service gratuity accrued over the employment; nationals require pension contributions.
For expatriate staff the gratuity accrues at 21 days' basic pay per year for the first five years and 30 days a year thereafter, capped at two years' pay.
There is no personal income tax in the UAE. Payroll compliance is mainly about WPS and, for nationals, pension registration, which under EOR is ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant UAE contract, WPS payroll, gratuity, and benefits, handled. One invoice, flat $499 per month.