Basic information
Capital: Abu Dhabi
Time zone: GMT+4
Language: Arabic
Currency code: AED
Human Resources at a Glance
Contract Terms
– Names and details of employers and employees
– The employee’s date of birth
– Duties and Responsibilities
– Place of work
– Employment status (full-time, part-time, or temporary)
– The start and end dates of the contract
– Total Monthly Salary and salary breakdown
– Date of payment
– working hours
– Leave entitlements
– Termination of Employment
Guidelines Regarding Probation Period/Trial Period
The probationary period can be up to six months, during which time the employer can terminate the employment contract with 14 days’ notice. The probationary period must be considered as part of the worker’s continuous service with the employer.
The employee submits his or her resignation during the probationary period for the following notice periods:
1 month: If an employee is joining another employer in the UAE, they must give one month’s notice to the employer. In this case, the new employer must reimburse the current employer for the cost of employee recruitment.
14 days: If an employee is leaving the UAE, they must give their employer 14 days’ notice. In this case, if the employee returns to the UAE within three months, the new employer will cover the hiring costs of the previous employer.
Regulations and Rules Regarding Working Hours
The standard working hours are 8 hours per day and 40 hours per week. The standard work week runs from Monday to Friday. During Ramadan, working hours are reduced to 6 hours per day.
Overtime pay for non-managerial positions is mandatory. Managers are allowed to take one day off after working for an extra hour or number of days. Time beyond standard working hours is considered overtime. Employees cannot work more than 2 hours of overtime per day, or a total of 144 hours of overtime in a 3-week period. Additional hours are paid as follows:
-Ordinary overtime – 125% of hourly wages
-10 p.m. to 4 a.m. – 150% of hourly wages
-Weekends and public holidays – 150% of hourly wages
Minimum Wage Requirements
In the UAE, the law does not stipulate a minimum wage for foreigners. For office employees, the salary should be higher than AED 1,500.
Payroll Cost
Estimates of employer fees vary depending on the employee’s nationality. For expatriate employees, the employer’s fee is estimated at 0.06% of their monthly salary, plus mandatory health insurance.
Social Security (UAE and GCC citizens only) 12.5%-15% of UAE nationals’ monthly salary*.
12.5% for salaries below AED 20,000;
15% for salary above AED 20,000;
The maximum salary as a basis for social insurance calculation is AED 70,000.
For citizens of GCC countries, the contribution rate may vary. Workers’ Compensation Insurance： AED 20-40/monthly； Mandatory Private Health Insurance – Monthly estimate: AED 300-600/monthly (depending on age and gender, assuming no pre-existing medical history)
For citizens of GCC countries, the ratio may vary. Additional information about mandatory private health insurance: The cost of medical insurance will be adjusted according to the employee’s gender, age and marital status, ranging from AED 2,500 to AED 12,000 per year (including issuance fee and VAT). Fees are invoiced annually. On the first invoice, the fee will be prorated from the enrollment date to the next policy expiration date (April).
Please note: Visa fees will be determined on a case-by-case basis. There are additional costs for employees who are citizens of the UAE and GCC countries.
Termination
Grounds
Dismissals must comply with complex rules and regulations in the country where the employee is located. Turnovers are always handled by the employer with key stakeholders. This may include specific fees for specific termination cases, as well as required or recommended steps. The employer can unilaterally terminate the contract at any time, as long as the appropriate statutory notice requirements and compensation rates are followed. Dismissal without notice must have a valid cause. Compliant dismissals include:
-Employees voluntarily resign
-By mutual consent
Unilaterally, the employer:
-Advance notice and payment of necessary compensation without justifiable reasons
-No notification is required for good reason
-Probation period
-Objective reasons
-Disciplinary dismissal
-Poor performance due to unsuitability for the job
The contract expires
Notice Period
The employer and employee can agree on a notice period, but the notice period must be at least 30 days and not more than 90 days. During the probationary period, employers must give 14 days’ notice and employees must give 1 month’s notice.
Notices must be given in writing. During the notice period, workers must be compensated for their full wages and must continue to perform their work, unless not requested by the employer. An employer or worker may pay the other party all or part of the notice period at the worker’s regular rate of pay.
Redundancy/Severance Pay
Workers who have worked for at least one year (excluding any days of unpaid absence) are entitled to statutory “end-of-service gratuity” upon termination of their contract. The compensation is calculated as follows:
21 days of pay – no more than 5 years of service
30 days pay – more than 6 years of service, capped at two years’ salary
Wages for the purpose of calculating compensation do not include all bonuses and allowances, overtime pay and payments in kind. For wrongful dismissal ( where the employee files a serious complaint or successful claim against the employer), severance pay of up to 3 months’ wages may be payable in addition to all other contractual and statutory rights. The total amount of compensation takes into account the employee’s length of service, job duties, and the damage suffered by the employee.
Payment & leaveCompensation & Holidays
Salary Payment
In the UAE, employers typically pay employees three to five business days before the end of the pay period. For workers whose wages are calculated on an annual or monthly basis, the period of wages shall not exceed one month.
All other workers must be paid at least once every two weeks. Wages must be paid on weekdays, and funds are deposited into their bank accounts. Payment can be made in UAE dirhams or other currencies.
Workers may not be required to purchase food or other goods from a specific store or to purchase an employer’s products.
Payslip
Employees must be provided with a detailed pay stub stating the amount of compensation and the amount and purpose of any variable or fixed deductions. Printable electronic payment statements are accepted.
Annual Leave
Workers are entitled to 30 days of paid annual leave after one year of service. Employees can only enjoy annual leave after six months of service in the first year of service; Thereafter, they are entitled to two calendar days of paid annual leave per month until one year of service.
Leave must be taken in the year in which the worker receives this right. However, employers have the discretion to implement leave carry-over policies.
Sick Leave
A worker is entitled to sick leave if he or she has worked with the employer for three months. Paid sick leave is not accrued during the probationary period. The statutory right is up to 90 calendar days of sick leave per year. Workers are entitled to:
-Full pay for the first 15 days of sick leave each year
-Half pay for days 16 to 45
There is no statutory requirement for employers to provide sick pay for the remainder of the annual sick leave quota. Once a worker is absent from work due to illness for more than 90 days, the employer has the right to fire them if they do not return to work. In this case, the worker is entitled to end-of-service gratuity if he meets the eligibility requirements.
Compassionate & Bereavement Leave
Bereavement leave is available in the event of the death of a close relative:
-Employee’s spouse: five days
-Employee’s immediate family: three days
Maternity & Parental Leave
Pregnant employees are entitled to 60 days of maternity leave, with the first 45 days being paid full pay and the remaining 15 days being half pay. This right is available to all pregnant female employees, regardless of the length of time they have worked with the employer. The law does not specify when to start taking leave, but it should be taken around the time of the birth of the child. Female employees who miscarry (or postpartum stillbirth or infant death) after six months of pregnancy are also entitled to maternity benefits.
Female FA employees who give birth to a disabled or sick child are entitled to an additional 30 calendar days of maternity leave, with the option to extend an additional 30 days of unpaid leave. Lactating mothers are entitled to two paid half-hour breaks during working hours within six months of returning to work. Pregnant employees are entitled to 45 days of maternity leave. This can be done continuously or as needed.
Employees who become fathers are entitled to five working days of paid paternity leave.
Tax and Social Security Information for Employers
Personal Income Tax
The UAE does not tax personal income. The same principle applies to freelancers and self-employed UAE residents.
Social Security
UAE employees who are UAE or Gulf Cooperation Council (GCC) nationals are required to make contributions to the General Directorate of Pensions and Social Security (GPSSA). Employers pay about 12.5% and employees pay about 5%, depending on whether they are UAE or GCC nationals. This fee is deducted from the monthly salary. Social security obligations also apply to all employees of companies and branches registered within a Free Trade Zone (FTZ).
Residents of other GCC countries may be subject to different social security contribution schemes than their home countries. Non-GCC nationals are not required to pay social security contributions in the United Arab Emirates.
Public Holidays 2024
| Occasional holidays | Date |
| New Year’s Day | 1.1 |
| Eid al-Fitr | 4.8-4.11 |
| Arafat Day | 6.15 |
| Fid al-Adha* | 6.16-6.18 |
| lslamic New Year | 7.7 |
| Prophet Mohammed’s Birthday | 9.16 |
| Commemoration Day | 12.1 |
| UAE National Day | 12.2-12.3 |