United Arab Emirates Employment Guide

The UAE is in eastern Arabian Peninsula, bordering the Persian Gulf (north), Oman and Saudi Arabia (south). It has ~10 million people, with most being foreign workers; Arabic is official, Abu Dhabi is the capital, and major cities include Dubai and Sharjah. Its economy is pillar-supported by oil and gas, while finance, real estate, tourism and aviation develop rapidly as a key Middle East economic hub. Labor laws (per UAE Labour Law) protect wages, hours, leave and social security. Standard workweek: 48 hours (overtime needs extra pay). Salaries are usually monthly (avg. AED 12,000-15,000 pre-tax, varying by industry/position). Laws cover paid leave and protect contract/temp workers, balancing interests for a flexible, sustainable labor market.

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Currency

United Arab Emirates Dirham (AED)

Capital

Abu Dhabi

Official language

Arabic

Salary Cycle

Monthly

Our Employment Guide in United Arab Emirates

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Minimum Wage Regulations in the UAE

The United Arab Emirates does not mandate a minimum wage for expatriate employees under federal law. Compensation is typically determined through mutual agreement between employer and employee, reflecting market conditions and individual qualifications.

Income Tax Considerations

Employees in the UAE are not subject to personal income tax, making it an attractive destination for international professionals. However, certain social security contributions may apply depending on the employee's nationality and circumstances.

Employer Cost Structure

Employer costs vary significantly based on employee nationality. For expatriate workers, estimated employer contributions include 0.06% for occupational hazards insurance plus mandatory health insurance coverage.

Social security contributions apply exclusively to UAE and GCC nationals:

UAE nationals: 12.5%-15% of monthly salary
GCC nationals: Variable rates depending on specific agreements

Additional cost components include:

Cost Item	Details
Occupational Insurance	0.06% of salary
Health Insurance	Average AED 1,083.33 monthly

Health insurance premiums are adjusted based on employee demographics including gender, age, and marital status, with annual costs ranging from AED 7,388 to AED 38,071 inclusive of issuance fees and VAT.

Working Hours and Overtime Regulations

The standard workweek consists of 40 hours distributed across five days (Sunday through Thursday). During Ramadan, daily working hours are reduced to six hours.

Overtime compensation is mandatory for non-managerial staff, while managerial employees typically receive compensatory time off. Overtime is limited to two hours daily or 144 hours over three weeks.

Overtime compensation rates:

Regular overtime: 125% of hourly rate
Night work (10pm-4am): 150% of hourly rate
Weekends and public holidays: 150% of hourly rate

Companies like SailGlobal can provide comprehensive cost analyses and ensure compliance with all UAE employment regulations.

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