Hire in United Arab Emirates

The United Arab Emirates (UAE) is located in Asia. It is​ situated in the southeastern region of the Asian continent and in the eastern part of the Arabian Peninsula. It overlooks the Arabian Gulf on the north and northwest, borders the Kingdom of Saudi Arabia to the west and south, and the Sultanate of Oman to the southeast. Spread over 83,600 square kilometers, the UAE is a constitutional federation of seven emirates. It is a politically and economically stable country. The UAE hosts more than 200 nationalities doing business, living, learning, and touring the country.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the United Arab Emirates.

Onboard your talent in United Arab Emirates

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Hire in United Arab Emirates through an

EOR

Easily onboard your remote talent in United Arab Emirates through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of United Arab Emirates

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Cost of living index

$$$$ (38 of 139 countries)

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Currency

Emirati Dirham (AED; Dhs)

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Payroll frequency

Monthly

Basic facts

The United Arab Emirates (UAE) is located in Asia. It is​ situated in the southeastern region of the Asian continent and in the eastern part of the Arabian Peninsula. It overlooks the Arabian Gulf on the north and northwest, borders the Kingdom of Saudi Arabia to the west and south, and the Sultanate of Oman to the southeast. Spread over 83,600 square kilometers, the UAE is a constitutional federation of seven emirates. It is a politically and economically stable country. The UAE hosts more than 200 nationalities doing business, living, learning, and touring the country.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the United Arab Emirates.

Capital

Abu Dhabi City

Official language/s

Arabic; English

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Population

9.51 million (2023 est.)

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VAT - standard rate

5%

The national holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
March 29-April 1Eid Al Fitr Movable
June 5Arafat DayMovable
June 6-8Eid Al AdhaMovable
June 26Islamic New YearMovable
September 4Prophet Mohammed's birthdayMovable
December 1Commemoration Day
December 2 - 3National Day & National Day Holiday

The approximate time for sharing the contract with an employee in United Arab Emirates is 5 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • The UAE does not levy income tax on individuals.
  • Organizations can be penalized for failure to pay salaries on time.
  • Indefinite contracts of employment were abolished. All employment contracts are concluded for a fixed term not exceeding three years.
  • The minimum wage is 4,000 AED per month for UAE nationals with a Diploma or High School Certificate.

There is a social security regime in the United Arab Emirates that applies to qualifying UAE and other Gulf Cooperation Council (GCC) national employees only. Non-GCC nationals are not subject to social security in the United Arab Emirates.

Social insurance offers a variety of privileges to citizens, some of which are: healthcare, education, housing, and public services. It also covers disability or special needs for people with determination, occupational diseases, and injuries.

Employers pay 12.5% of payroll costs to the General Pension and Social Security Authority for UAE nationals. A higher rate of 15% is applied in the Emirate of Abu Dhabi. 

Starting June 1, 2023, employees will also pay 5 AED per month for unemployment insurance.

Working Hours

The maximum working hours for the private sector is eight hours per day, or 48 hours per week. During the holy month of Ramadan, the working hours must be reduced by two hours.

The worker must not work for more than five consecutive hours without a break or breaks of not less than an hour in total, provided that these periods are not included in the working hours.

 

Overtime

The employer may ask the employee to work overtime, provided the number of extra hours does not exceed two hours in one day. In all cases, the total working hours must not exceed 144 hours every three weeks.

If the nature of the work requires employees to work beyond the normal working hours, then they become entitled to a payment equal to normal working hours’ remuneration (which is based on basic salary) plus 25% of that pay. It increases to 50% if overtime is done between 10 pm and 4 am. This rule does not apply to workers who work in shifts.

Probation Period

A probationary period for the worker must not exceed six months. It is not permissible to appoint a worker under probationary period more than once for employer, and if the worker successfully passes the probationary period and continues to work, the contract becomes valid according to the agreed terms. This period must be counted within the term of service.

 

Termination Notice Period

Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work is performed during the notice period agreed upon in the contract, provided that such period is not less than 30 days and not more than 90 days.

Working Hours

The maximum working hours for the private sector is eight hours per day, or 48 hours per week. During the holy month of Ramadan, the working hours must be reduced by two hours.

The worker must not work for more than five consecutive hours without a break or breaks of not less than an hour in total, provided that these periods are not included in the working hours.

 

Overtime

The employer may ask the employee to work overtime, provided the number of extra hours does not exceed two hours in one day. In all cases, the total working hours must not exceed 144 hours every three weeks.

If the nature of the work requires employees to work beyond the normal working hours, then they become entitled to a payment equal to normal working hours’ remuneration (which is based on basic salary) plus 25% of that pay. It increases to 50% if overtime is done between 10 pm and 4 am. This rule does not apply to workers who work in shifts.

Probation Period

A probationary period for the worker must not exceed six months. It is not permissible to appoint a worker under probationary period more than once for employer, and if the worker successfully passes the probationary period and continues to work, the contract becomes valid according to the agreed terms. This period must be counted within the term of service.

 

Termination Notice Period

Either party to the employment contract may terminate the contract for any legitimate reason, provided that the other party is notified in writing and work is performed during the notice period agreed upon in the contract, provided that such period is not less than 30 days and not more than 90 days.

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There is a social security regime in the United Arab Emirates that applies to qualifying UAE and other Gulf Cooperation Council (GCC) national employees only. Non-GCC nationals are not subject to social security in the United Arab Emirates.

Social insurance offers a variety of privileges to citizens, some of which are: healthcare, education, housing, and public services. It also covers disability or special needs for people with determination, occupational diseases, and injuries.

Employers pay 12.5% of payroll costs to the General Pension and Social Security Authority for UAE nationals. A higher rate of 15% is applied in the Emirate of Abu Dhabi. 

Starting June 1, 2023, employees will also pay 5 AED per month for unemployment insurance.