* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Abu Dhabi

Dirham (د.إ)


GST (GMT +4)

Employment Cost


Annual Leave

30 days

In-demand Specialties*
Finance And Banking, Hospitality And Tourism, Real Estate And Construction

The Ultimate Guide to Hiring Employees in The United Arab Emirates

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-The United Arab Emirates-guide

Key Considerations Before Hiring In The United Arab Emirates

Employing in The United Arab Emirates requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in The United Arab Emirates with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in The United Arab Emirates quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

There are more than 200 nationalities that make up the UAE's resident population. Arabic is the country’s official language, although English, Hindi, Farsi and Urdu are commonly spoken.

Dubai, Abu Dhabi and Sharjah are known to be home to a huge population of expats. Some of the world’s most talented professionals live in the Emirates and a significant portion of these workers have experience working with multi-nationals.

The UAE has over 40 diverse Free Zones that allow foreign-owned businesses to have complete ownership without requiring local partnerships. Each of these Free Zones operates under its own set of regulations and customs tailored to specific industries.

Foreign labour is integral to the UAE, making up about 85% of its population. Companies must comply with stringent regulations to secure work and resident permits for their employees.


Fundamental Aspects of Employment in The United Arab Emirates

Before signing the employment contract in The UAE, all employees must sign an offer letter stating the basic employment terms. The basic terms are as follows:

  • Names of the employer and employee
  • Beginning date of employment
  • Expiry, or renewal, date of employment
  • Salary information
  • Usual working hours and days
  • Annual leave and pay
  • Sick leave and pay
  • National holidays
  • Employee’s working title
  • Notice period for termination of the employment relationship
  • Place of employment
  • Employer’s disciplinary rules, if applicable
  • Free Zone rules, if applicable

Probationary Period in The United Arab Emirates

In The UAE, probation periods are limited to six months, and employees cannot be subjected to probation more than once. This regulation is outlined in Article 37 of the Emirati Labour Law.

Working hours in The United Arab Emirates

Employees work 8 hours a day, up to 48 hours a week, from Monday to Friday. During Ramadan, working hours are reduced by 2 hours daily. Workers must have a break after five consecutive hours, totaling at least an hour, which should not be counted within the working hours.

Overtime in The United Arab Emirates

Employees can work a maximum of two extra hours per day. If the job demands work beyond regular hours, employees receive overtime pay, computed at different rates. Nighttime overtime, between 9 pm and 4 am, is compensated at 150% of the regular salary rate, while other overtime periods are paid at 125%.

Navigating Key Aspects of Payroll in The United Arab Emirates

the UAE has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in The United Arab Emirates

1 January - 31 December is the 12-month accounting period that businesses in The United Arab Emirates use for financial and tax reporting purposes.

Payroll Cycle in The United Arab Emirates

The payroll cycle in The United Arab Emirates is usually monthly, with employees being paid first day of the month.

Minimum Wage in The United Arab Emirates

Minimum wages and salaries in The United Arab Emirates

There is no national minimum wage in the UAE. However, the Emirati Labor Law does dictate that all wages and salaries must meet employees’ basic needs. The UAE Cabinet decree determines the minimum wage and cost of living index for specific professions and areas of the country.

Bonus Payments in The United Arab Emirates

In the United Arab Emirates, there is no obligation for employers to provide a 13th-month salary payment.

Comprehensive Overview of Employment Taxes in The United Arab Emirates

Understanding the tax obligations for both employers and employees is crucial when operating in The United Arab Emirates's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in The United Arab Emirates.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12.50% on top of the employee salary in The United Arab Emirates.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In The United Arab Emirates, the typical estimation for employee payroll contributions cost is around 5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The UAE does not impose personal income tax. in January 2022, the Ministry of Finance introduced a federal corporate tax on business profits, applicable to domestic businesses in all emirates. Foreign businesses operating in Free Zones are exempt from any taxes.

Tax Rate Income Bracket

Pension in The United Arab Emirates

In the UAE, The General Pension and Social Security Authority (GPSSA) provides pension services for old-age retirement, disability, death, and occupational illnesses. Employees are eligible for an old-age retirement pension if they achieve 50 years of age with 20 years of service.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in The United Arab Emirates tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in The United Arab Emirates

When it comes to terminating employment in The United Arab Emirates, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In the UAE, both parties in an employment contract can terminate for legitimate reasons. This requires notifying the other party in writing, following the correct notice period, and informing the relevant authorities accordingly. Legitimate reasons may include:

  • Performance or behavioural issues
  • Bankruptcy
  • Insolvency
  • Worker's failure to renew a work permit

Notice Period

In accordance with UAE labor law, a mandatory notice period of at least 30 days is stipulated. However, for employees under the DIFC employment law, the length of the notice period is determined by the duration of employment as follows:

  • 1-5 months of employment: 2 weeks' notice
  • Up to 5 years of employment: 1 month's notice
  • 5 or more years of employment: 90 days' notice

Severance Pay

Severance payouts in The UAE depend on certain factors. These are described below:

  • After a year of service, a worker is entitled to severance pay, calculated at 21 days' wage for each year within the first 5 years and 30 days' wage for each subsequent year, prorated for any time worked beyond a full year.
  • For foreign employees, severance pay is capped at two years' wage and is calculated based on the last basic wage received.

Annual Leave Entitlements and Company Policies in The United Arab Emirates

The annual leave entitlement in The United Arab Emirates is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in The United Arab Emirates

In the UAE, there are 15 public holidays each year. These holidays are separate from the minimum paid leave entitlement and are taken in addition to annual leave. The following holidays are recognized as national holidays in the UAE:

Holiday Date

Paid Time Off in The United Arab Emirates

Maternity Leave in The United Arab Emirates

Paternity Leave in The United Arab Emirates

Sick Leave in The United Arab Emirates

Bereavement Leave

Study Leave

Parental Leave In The United Arab Emirates

The United Arab Emirates's Benefits Built Into Playroll

Competitive benefits package in The United Arab Emirates

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in The United Arab Emirates's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In The United Arab Emirates

Make your benefits package in The United Arab Emirates a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in The United Arab Emirates

Playroll allows you to provide localized benefits for employees in The United Arab Emirates within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in The United Arab Emirates create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for The United Arab Emirates

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in The United Arab Emirates.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!