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 set minimum wage for expatriate workers; a floor applies to Emirati nationals under Emiratisation rules*.
Monthly, paid through the Wage Protection System (WPS). There is no statutory 13th salary.
Around 14 paid public-holiday days a year, including the two Eids and National Day.
Written contracts registered with the Ministry. Probation can run up to six months, with defined notice to end it.
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.
30 calendar days of paid leave a year after one year of service, and two days a month between six months and a year.
60 days of maternity leave (45 at full pay, 15 at half), with additional unpaid options.
Five working days of parental leave for either parent within the first six months.
Up to 90 days a year after probation: 15 at full pay, 30 at half pay, and the rest unpaid.
Notice is typically 30 to 90 days as set in the contract. All private-sector contracts are now limited-term and renewable.
On exit, expatriate employees receive their accrued gratuity, subject to the service and cap rules.
Up to six months, with 14 days' notice to end it during the period, and longer notice if the worker leaves the country.
Work generally requires a matching permit or pass; engaging someone outside the proper permit structure creates compliance exposure.
*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.