Hiring in the United Arab Emirates
- Minimum wage
- None — Emiratis only AED 6,000
- Average salary
- No official figure published
- Employer contributions
- 0%
- Income tax
- None — no personal income tax
- Paid leave
- 30 days
- Public holidays
- up to 13 days
- Probation
- up to 6 months
- Notice period
- 30 – 90 days
General information, not legal or tax advice — confirm with a local adviser before you act.
Contents
A foreign company with no UAE entity cannot hold a work permit, because the MoHRE permit is issued for work at a licensed establishment.
You have three routes. Set up your own UAE entity, either a mainland licence or a free zone such as DIFC or ADGM. Use a locally licensed staffing or outsourcing company. Or engage a licensed freelancer.
The UAE has no general minimum wage. Only Emiratis have a floor, AED 6,000 a month since 1 January 2026, according to EY.
Employment law in the UAE comes in three rulebooks: the mainland, under Federal Decree-Law 33/2021 and enforced by MoHRE, plus DIFC and ADGM. Every rule below names the one it belongs to.
Three ways to hire in the UAE
Your own entity suits a standing team and makes you the employer. A licensed staffing company suits a hire you need on the ground before you have an entity. A contractor suits a defined project and a genuinely independent person.
| Route | Legal employer | What you pay on top of salary | How you end it |
|---|---|---|---|
| Your own entity | Your UAE entity | 0% social security for expatriates; end-of-service gratuity of 21 days of basic wage per year for years 1 to 5, then 30; employer-funded health insurance; visa and permit fees | Notice of 30 – 90 days, as set in the contract |
| Employer of record | A MoHRE-licensed staffing or outsourcing company | The provider's fee; no figure is published here | The same labour-law notice, 30 – 90 days |
| Contractor | The contractor itself: a licensed company or a freelance-permit holder | Nothing set by statute | As the contract says; if the relationship is employment in substance, fines run AED 100,000 to 1,000,000, multiplied by the workers involved, up to AED 10,000,000 in total |
On the mainland, placing workers with a third party needs a MoHRE licence. DLA Piper reports a mandatory bank guarantee of AED 300,000 for employment intermediation and AED 1,000,000 for temporary staffing or a combined licence.
The licence categories DLA Piper lists do not include one called "employer of record".
Afridi & Angell's 2024 note on hiring in the UAE says the mainland does not recognise a third-party employer of record or professional employment organisation as a category.
Individuals must be sponsored by a locally licensed entity, so a person engaged that way is deemed an employee of the provider, not of the foreign client. The note excludes DIFC and ADGM.
Read together with the licence rule, the foreign client is not the employer, while a licensed local entity can be. The employer of record model therefore works on the mainland only through that licensed employer.
If the person lives in the UAE, a licensed establishment must hold their work permit. Expatriates have no UAE pension scheme; end-of-service gratuity applies instead, according to the UAE government pension page for expatriates.
If they work from abroad, the answer depends on the rulebook; see the remote staff section below.
Mainland, DIFC or ADGM: the three rulebooks
Each rulebook has its own text:
- Mainland: Federal Decree-Law 33/2021, under MoHRE.
- DIFC: the DIFC Employment Law.
- ADGM: the ADGM Employment Regulations 2024.
The money amounts are close. Cash timing, leave counting and notice are not.
| Topic | Mainland | DIFC | ADGM |
|---|---|---|---|
| Governing text | Federal Decree-Law 33/2021, enforced by MoHRE | DIFC Employment Law No. 2 of 2019, consolidated to July 2025 | Employment Regulations 2024, in force 1 April 2025 |
| End-of-service | 21 days of basic wage per year for years 1 to 5, then 30; unfunded; paid within 14 days of exit | Monthly payments into DEWS: 5.83% of basic wage for years 1 to 5, then 8.33% | 21 days of basic wage per year for years 1 to 5, then 30; daily rate is basic wage / 365 |
| Notice | 30 to 90 days, set in the contract | 7 / 30 / 90 days by tenure | 7 / 30 days by tenure |
| Probation | up to 6 months; employer ends it on 14 days' written notice | up to 6 months | up to 6 months; one week's written notice |
| Annual leave | 30 days after one year | 20 work days, excluding public holidays | 20 working days, excluding national holidays |
| Public holidays inside leave | Counted as leave | Not counted | Not counted, and leave with pay on them |
| Working time | 48 hours a week | Average of 48 hours per 7 days | 48 hours in 7 days |
| Sick leave | Up to 90 days: 15 full pay, 30 half pay | 60 work days: 10 full pay, 20 half pay | 60 working days: 10 full pay, 20 half pay |
| Maternity leave | 60 days | 65 work days | 65 working days |
| Remote employee living abroad | Remote work allowed with employer approval; permit position not stated | — | No residency visa or work permit needed |
| After exit | Employer bears repatriation to the place of recruitment or an agreed place, unless the worker joins another employer or caused the termination | — | One-way flight within 30 calendar days, with exceptions |
DIFC rows other than end-of-service follow the 2019 law text. The law has since been consolidated up to July 2025, and the DEWS rates above match that version.
Clyde & Co, which advised ADGM on its rules, confirms the 1 April 2025 start. The ADGM probation section was amended on 28 October 2025.
UAE and GCC nationals employed in DIFC are registered with the GPSSA and are not eligible for gratuity.
End-of-service pay by regime and tenure
The mainland pays 21 days of basic wage for each of the first five years and 30 days for each year after, once the worker has completed one year. The total cannot exceed two years' wage.
The law fixes days, not dirhams, and the official gratuity page gives no daily-rate formula. The amount therefore depends on the daily-rate method you apply; press explainers divide monthly basic wage by 30.
The table compares the three regimes at a basic wage of AED 15,000 a month. ADGM pays its gratuity at exit; DIFC employers have already paid the DEWS contributions in, before any fund returns.
| Service | Mainland (days of basic wage) | ADGM gratuity (AED) | DIFC DEWS contributions (AED) |
|---|---|---|---|
| 3 years | 63 | 31,068 | 31,482 |
| 5 years | 105 | 51,781 | 52,470 |
| 10 years | 255 | 125,753 | 127,440 |
DIFC contributions run slightly above the ADGM entitlement at every tenure, so the two cost almost the same over a career. The difference is timing.
DIFC employers pay as they go. A mainland employer carries an unfunded liability, payable within 14 days of exit.
The voluntary Savings Scheme offers a pay-as-you-go route on the mainland and in free zones, at 5.83% of monthly basic wage before five years of service and 8.33% after. No mandate has been announced.
Enrolled employees leave the traditional gratuity system. DIFC's five-year count includes service before the scheme began.
Repatriation after exit
The mainland also puts repatriation on the employer, under Article 13(12) of Federal Decree-Law 33/2021, read in its unofficial English translation.
The employer bears the cost to the place of recruitment or an agreed place, unless the worker joins another employer or caused the termination.
ADGM adds a fixed deadline and a remote-employee exception. An ADGM employer must provide a one-way flight to the employee's country of origin, or reimburse it, within 30 calendar days of the termination date. Three exceptions apply:
- a remote employee who neither lives nor works in the UAE;
- an employee who finds new UAE employment or sponsorship within 30 days;
- an employee dismissed for cause.
The UAE labour market and pay reference points
Average salary in the UAE: No official figure published. The Central Bank of the UAE reports the average wage of employees covered by the Wages Protection System (WPS) only as a year-on-year change.
That change was a decline of 2.3% for June 2026, on a three-month moving average.
Abu Dhabi and Dubai, home to ADGM and DIFC, set rules that differ by emirate. Three stand out:
- Health insurance. Employer-funded cover has been compulsory in Abu Dhabi since 2005 and in Dubai. From 1 January 2025 it extends to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, according to Clyde & Co.
- Dubai visa fees. The work visa costs AED 200 plus 5% VAT. The residence permit costs AED 200 plus fixed charges and lasts two years.
- Pensions for nationals. In Abu Dhabi, the Abu Dhabi Pension Fund (ADPF) manages pensions for Abu Dhabi-based and employed UAE nationals. The federal GPSSA law covers private-sector employers in all other emirates, according to u.ae.
Salary reference points
No official body publishes salaries by role, so statutory thresholds serve as the benchmarks.
| Emirati private-sector minimum | AED 6,000 / month — since 1 January 2026 | EY (minimum salary) |
| ILOE category split | Basic salary of AED 16,000: AED 5 + VAT a month up to it, AED 10 + VAT above | ILOE |
| GPSSA state share | 2.5 of the employer's 15 percentage points, paid by the government for private-sector monthly salaries under AED 20,000 | DLA Piper (pensions) |
| GPSSA pensionable cap | AED 70,000 / month | DLA Piper (pensions) |
| Freelancer green-visa income | AED 360,000 a year, for the two preceding years | GDRFA (green residence); ADDED (green visa) |
| WPS average wage change | −2.3% year on year, June 2026 | Central Bank of the UAE |
No pay floor applies to expatriates; the Labour Law requires only that wages meet basic needs. Check any offer against the thresholds above.
Registering as an employer, step by step
A foreign company needs a licensed UAE establishment before it can sponsor anyone. Once that exists, MoHRE's Work Bundle cuts the permit-to-visa stage from 30 working days to 5.
No authority publishes a total from company formation to the first wage.
| Step | What happens | Takes |
|---|---|---|
| 1. Licence and establishment | A licensed establishment is the base for any permit. Licence types: industrial, commercial, crafts, tourism, agricultural and professional; FTA (natural persons guide). Choose a mainland licence or a DIFC or ADGM registration | Not published |
| 2. Work permit and residence | MoHRE Work Bundle (mainland): onboarding, work permit, residence visa, medical test and Emirates ID biometrics on one platform; the permit is valid for two years; u.ae (work permits) | 5 working days |
| 3. Entry and residence costs | The employer pays the entry visa, travel to the UAE, post-arrival medical tests and the residence permit; charging recruitment fees to the employee is illegal; u.ae (expatriate employment). Dubai fees are in the labour market section | Not published |
| 4. Health insurance | Employer-funded cover for the employee, compulsory in every emirate; Clyde & Co (health insurance) | Not published |
| 5. Contract and wage routing | A written contract; WPS (mainland): wages for each month are paid through WPS and fall due on the 1st of the next month; u.ae (payment of wages) | First wage due on the 1st |
| 6. Emirati hires only | Register the Emirati with the pension system and start contributing within a month of the work permit; u.ae (Emiratis' employment). Count the hire towards Emiratisation | Within one month of the permit |
| Total | Step 2 is the only stage with a published duration | 5 working days for step 2; others not published |
Instead of an AED 3,000 bank guarantee with MoHRE, you can buy insurance for workers, with a maximum cover of AED 20,000 per worker.
ADGM adds a contract rule: the employer must give the employee a copy of the signed contract within one month of the start date, according to ADGM's Employment Affairs Office guidance.
ADGM also issues its own work permit. For a self-sponsored employee, such as a UAE Golden Visa holder, the employer needs no residency visa but must hold, or have applied for, that permit before the start date.
Example: an employee who starts on 15 October is owed that month's wage on 1 November, which is the first payroll date to plan for.
The chart runs from the licence to the Work Bundle, the wage due date, and the late-payment steps on day 5, 16 and 21.
Hiring and onboarding in the UAE
On the mainland a contract runs at most three years, probation can run up to 6 months, and you pay visa and residence costs from day one. Rules below are mainland rules unless marked DIFC or ADGM.
Legal limits on the contract
- Term. A fixed-term contract runs for at most 3 years and can be renewed by agreement for the same or a shorter term, under Federal Decree-Law 33/2021.
- Probation. It may last up to 6 months and can be used once with the same employer. No paid sick leave accrues during probation.
- Ending probation. You end it on at least 14 days' written notice. The law text sets 14 days for the employer, not the 30 days many summaries quote.
- A worker who leaves during probation. A worker moving to another UAE employer gives one month's written notice, and the new employer compensates your recruitment costs unless agreed otherwise. A foreign worker leaving the UAE gives 14 days.
- Currency. Wages can be paid in dirhams or in another currency if the contract says so.
- Deductions. Total deductions may not exceed 50% of the wage. Recovering an overpayment is limited to 20% and disciplinary fines to 5%.
- Costs. Charging recruitment fees to the employee is illegal. You pay the entry visa, travel to the UAE, post-arrival medical tests and the residence permit.
- Emiratisation. The quota counts your own establishment, according to the government portal.
- With 50 or more workers, you must raise the Emirati share of skilled jobs by 2% a year, to a cumulative 10% by 2026.
- With 20 to 49 workers in 14 listed sectors, you had to hire one Emirati by the end of 2024 and one more by the end of 2025.
Onboarding checklist
- Sign a written contract with a term of no more than 3 years.
- Obtain the work permit through the Work Bundle.
- Complete the visa, medical test and Emirates ID.
- Arrange employer-funded health insurance.
- Set up wage payment through WPS, with the first wage due on the 1st of the following month.
- Enrol the employee in ILOE unemployment insurance. It costs AED 5 + VAT a month up to a basic wage of AED 16,000, and the worker pays it (ILOE).
- Decide between traditional gratuity and the voluntary Savings Scheme.
What changes at 6, 12, 36 and 60 months
| Milestone | What changes |
|---|---|
| Month 6 | Probation ends at the latest. Once service passes six months, annual leave accrues at 2 days a month |
| Month 12 | Annual leave reaches 30 days and gratuity starts. ILOE claims become possible after 12 months of premiums: 60% of basic wage for up to 3 months |
| Year 3 | A fixed-term contract reaches its 3-year maximum; it can be renewed by agreement |
| Year 5 | Mainland gratuity steps from 21 to 30 days of basic wage per year. In DIFC, DEWS rises from 5.83% to 8.33% and notice from 30 to 90 days |
The year-5 step is the one that changes cost: it affects gratuity on the mainland and DEWS contributions in DIFC.
Remote staff who live outside the UAE
Whether a remote employee abroad needs a UAE permit depends on the rulebook. ADGM says no. The mainland law allows the arrangement but does not state that the permit duty falls away.
- ADGM. A remote employee who neither lives nor works in the UAE needs no residency visa or ADGM work permit, according to ADGM's Employment Affairs Office.
- ADGM, remote employee in the UAE. One who lives and works in the UAE does need the permit.
- Mainland. Federal Decree-Law 33/2021 lets a worker work remotely, inside or outside the UAE, with the employer's approval. Separately, any work in the UAE needs a work permit.
- Mainland, WPS. Foreign establishments can ask MoHRE to exclude staff paid outside the UAE from WPS, with the workers' approval.
Tax is a separate question. A foreign company has UAE corporate tax nexus through a fixed-place permanent establishment, such as an office, branch or place of management.
It also has nexus through a dependent-agent permanent establishment, where a person habitually concludes contracts on its behalf, according to the Federal Tax Authority. A remote employee who habitually concludes contracts for you can therefore create exposure.
If you want a licensed local employer rather than a direct hire, the employer of record page covers how that model works.
Minimum wage in the UAE
None — Emiratis only AED 6,000: federal law sets no general minimum wage for private-sector employees, and the only floor is the AED 6,000 a month that applies to Emirati nationals.
| General minimum wage (mainland) | None; the Labour Law requires only that wages meet basic needs | u.ae (payment of wages) |
| Power to set one | Article 27 lets the Cabinet set a minimum wage by resolution; none has been set | Decree-Law 33/2021 |
| Emirati private-sector minimum | AED 6,000 / month — since 1 January 2026, up from AED 5,000 | EY (minimum salary) |
| Deadline for earlier Emirati hires | 30 June 2026 to raise salaries of Emiratis hired before 1 January 2026 to AED 6,000 | EY (minimum salary) |
| Consequence of missing it | From 1 July 2026, those Emiratis are excluded from Emiratisation targets and new work permits can be suspended | EY (minimum salary) |
For expatriates, the contract salary is a market matter. The only wage-adequacy test is "enough to meet basic needs", set out on the government payment-of-wages page. No statutory hourly rate is set.
For an Emirati at the floor, employed outside Abu Dhabi, who first joined the labour market on or after 31 October 2023, you also pay a GPSSA contribution of AED 750 a month, covered in the taxes section.
Register the Emirati for pension within a month of the work permit.
The Nafis programme, which supports Emirati private-sector employment, was extended to 2040 on 6 April 2026.
KPMG reported that the reform benefits would be available to new beneficiaries from September 2026, with existing participants able to transition over three years.
Paying wages: the first-of-the-month rule and what happens when you are late
On the mainland, wages for the previous month have been due on the first day of each Gregorian month since 1 June 2026.
At least 85% of the total wages due must go through the Wages Protection System (WPS) on time.
The threshold was 80% before Ministerial Resolution 340 of 2026, according to Morgan Lewis.
The government payment-of-wages page sets out the rule and the penalty steps.
The escalation ladder
| Day after due date | What happens | Source |
|---|---|---|
| Day 2 | Notifications and alerts go to the non-compliant establishment | u.ae (payment of wages) |
| Day 5 | New work permits for the establishment are suspended | u.ae (payment of wages) |
| Day 11 | On a repeat violation within six months: an administrative fine and reclassification of the establishment to the Third Category | u.ae (payment of wages) |
| Day 16 | Labour disputes are registered automatically for establishments with 25 or more workers | u.ae (payment of wages) |
| Day 21 | An executive instrument for the wages under 50 workers, or a collective labour dispute at 50 or more; precautionary attachment and a travel ban on the person in charge. Referral to the Public Prosecution for 50 or more workers on a repeated violation within two consecutive months | u.ae (payment of wages) |
Clyde & Co lists the same sequence: reminders from day 2, permit suspension from day 5, and fines and Third Category classification from day 11 for repeat breaches.
A worked example
Wages for September are due on 1 October. Counted from that date, the whole ladder, from the first alert to a travel ban, runs inside three weeks.
Wages are late from 2 October, so fund the transfer before the last working day of September.
On June wages, the first month under the rule, Sara Khoja, a partner at Clyde & Co, wrote:
Any payment made after 1 July would technically constitute delayed payment under the WPS regime
— Sara Khoja, Partner, Clyde & Co
The same Clyde & Co authors note that the resolution addresses employers that outsource payroll and confirms they remain ultimately responsible for timely salary payment.
The resolution is a mainland MoHRE rule; DIFC and ADGM run their own employment rulebooks.
Taxes and contributions
None — no personal income tax applies to employees, on the mainland or in free zones, according to the government taxation page.
Employer social security for expatriates is 0%, because the UAE has no pension scheme for them; end-of-service gratuity applies instead.
| Who | Employer | Employee | Source |
|---|---|---|---|
| Expatriates, mainland | 0% | 0% | u.ae (expatriate pensions) |
| Expatriate employees of a DIFC entity | DEWS: 5.83% of basic wage for years 1 to 5, then 8.33% | Not stated | DIFC (Law No. 2 of 2019) |
| UAE nationals outside Abu Dhabi (first joined the labour market on or after 31 October 2023) | 15% of pensionable salary, of which the government pays 2.5% for private-sector monthly salaries under AED 20,000; salary capped at AED 70,000 | 11% | DLA Piper (pensions); u.ae (pensions for UAE citizens) |
| UAE nationals based and employed in Abu Dhabi | Under the Abu Dhabi Pension Fund (ADPF), not GPSSA | Under ADPF | u.ae (pensions for UAE citizens) |
| GCC nationals | Home-country social security, subscribed by the UAE employer | Home-country rules | u.ae (expatriate pensions) |
| ILOE unemployment insurance | None | AED 5 + VAT a month up to basic AED 16,000; AED 10 + VAT above | ILOE |
| Savings Scheme (voluntary, replaces gratuity) | 5.83% of basic wage before 5 years of service, 8.33% after | None | u.ae (end of service benefits) |
The split above follows Federal Decree-Law 57/2023, in force from 2 October 2023, according to DLA Piper. It applies to nationals who first join the labour market on or after 31 October 2023, according to u.ae.
Nationals already registered with GPSSA before the 2023 law took effect stay under the 1999 pensions law, which splits the contributions differently, according to DLA Piper and u.ae.
The Nafis programme changes the employer side for enrolled Emiratis. From September 2026 private-sector employers pay their statutory share of pension contributions.
That ends the phased employer ramp Nafis had covered: 0% in year one, then 2%, 4%, 5% and 6%, according to Gulf News.
Corporate tax applies to the employer entity, not to employees' pay. It is 0% on taxable income up to AED 375,000 and 9% on the part above, according to the Federal Tax Authority.
Employment income of natural persons falls outside corporate tax. A foreign company can also create tax nexus through a permanent establishment, as the remote staff section explains.
What an employee actually costs you
The pension line is where an expatriate and an Emirati hire differ.
The table shows the employer's monthly contribution at the same salary, for an Emirati employed outside Abu Dhabi who first joined the labour market on or after 31 October 2023.
| Monthly salary | Expatriate: employer pension contribution | UAE national: employer GPSSA contribution |
|---|---|---|
| AED 6,000 | AED 0 | AED 750 |
| AED 30,000 | AED 0 | AED 4,500 |
| AED 100,000 | AED 0 | AED 10,500 |
- At AED 6,000, the national's figure is 15% minus the 2.5% the state pays.
- At AED 30,000, the full 15% applies.
- At AED 100,000, the AED 70,000 cap binds: you pay 15% of AED 70,000, which is AED 10,500, the maximum.
Compare the two only at the same salary. An Emirati hire carries the AED 6,000 floor; an expatriate's cost sits in gratuity.
The figures leave out health insurance premiums, visa fees, ILOE (worker-paid) and any Emiratisation contributions.
On top, an expatriate accrues gratuity on basic wage only, so allowances do not enter it.
On the mainland that is 21 days per year of service for the first five years; in DIFC it is DEWS at 5.83% of basic wage for the first five years.
Working time and overtime
Normal mainland working hours are 8 a day or 48 a week, not 40, under Federal Decree-Law 33/2021. The other mainland rules:
- Overtime limit. At most 2 hours a day, and total hours may not exceed 144 per 3 weeks.
- Overtime pay. Basic wage plus at least 25%, and plus at least 50% between 10 pm and 4 am. Shift workers are not covered by the night premium.
- Weekly rest day. Work on it earns another day off or the day's wage plus at least 50% of basic wage.
- Public holidays. Work on a public holiday is compensated the same way: another day off, or the normal day's wage plus at least 50% of basic wage.
- Ramadan. Private-sector hours are cut by 2 a day with no wage reduction, according to the government working-hours page.
- Remote work. Allowed with the employer's approval, and the employer may require specific working hours.
The free zones differ on the same points:
| DIFC | ADGM | |
|---|---|---|
| Weekly limit | Average of 48 hours per 7 days, more with written consent | 48 hours in 7 days, more with written consent |
| Ramadan | Muslim employees work at most 6 hours a day with no pay cut | Muslim employees' hours cut by 25% a day with no pay cut |
A 12-hour day exceeds the mainland limits. Eight normal hours plus at most 2 hours of overtime gives 10.
Leave, sick pay and parental leave
Mainland employees get 30 days of paid annual leave after one year of service, plus public holidays of up to 13 days.
Between six and twelve months of service, leave accrues at 2 days a month, according to the government leave page.
The public holiday calendar counts these days:
- New Year: 1 day
- Eid Al Fitr: up to 4 days
- Arafah Day: 1 day
- Eid Al Adha: 3 days
- Hijri New Year: 1 day
- Prophet's birthday: 1 day
- National Day: 2 days
Islamic dates follow moon sighting, so the exact days move each year. On the mainland, unused leave is paid out on exit at basic wage.
Do public holidays count inside annual leave?
On the mainland, yes: a public holiday that falls inside annual leave counts as part of the leave, unless the contract or establishment rules are more favourable. A 30-day entitlement therefore does not grow when a holiday lands in it.
DIFC and ADGM work the other way:
- DIFC. 20 work days of paid leave a year after 90 days of employment, exclusive of public holidays. Up to 5 days can be carried forward for 12 months.
- ADGM. 20 working days a year, exclusive of national holidays, plus leave and daily wage on national holidays that fall on a working day.
Sick leave, maternity and parental leave
| Type | Mainland | DIFC | ADGM |
|---|---|---|---|
| Sick leave | Up to 90 days a year after probation: first 15 days full pay, next 30 half pay, the rest unpaid | 60 work days in 12 months: 10 full pay, then 20 at 50% | 60 working days in 12 months: 10 full pay, 20 at 50%, last 30 unpaid, after probation |
| Maternity leave | 60 days: 45 full wage, 15 half wage | 65 work days; after 12 months' service, 33 at full pay and 32 at half | 65 working days: 33 at full pay and 32 at half |
| Paternity or parental leave | 5 working days for either parent, within 6 months of the birth | Up to 5 work days for a father with 12 months' service | 5 working days within 2 months of birth or adoption; paid after 12 months' service |
Other mainland rules:
- Bereavement leave is 5 days for a spouse and 3 days for a parent, child, sibling or grandparent.
- Dismissal because of pregnancy or maternity leave is prohibited.
- ILOE is a separate insurance paid by the worker and does not replace sick pay.
Termination: notice and payments
Notice on the mainland is 30 – 90 days, fixed in the contract and not tied to length of service, under Federal Decree-Law 33/2021. The other mainland rules:
- During notice. The worker keeps the full wage. A party that skips notice pays the other the wage for the full or remaining period. When the employer terminates, the worker may be absent one working day a week, unpaid, to look for work.
- Summary dismissal. Allowed only on the ten grounds of Article 44, after a written investigation and a reasoned written decision.
- Unlawful dismissal. Dismissal for filing a proven complaint or a lawsuit is unlawful. Compensation can reach 3 months of the last wage, on top of notice pay and gratuity.
- Health. You may not terminate for lack of health fitness before the worker has used accrued leave.
- A worker who leaves illegitimately. A foreign worker who leaves before the contract term ends cannot get a new work permit for one year.
Notice by regime and tenure
DIFC and ADGM tie notice to length of service. The mainland does not.
| Length of service | Mainland | DIFC | ADGM |
|---|---|---|---|
| Under 3 months | 30 to 90 days, set in the contract | 7 days | 7 days |
| 3 months to 5 years | 30 to 90 days, set in the contract | 30 days | 30 days |
| Over 5 years | 30 to 90 days, set in the contract | 90 days | 30 days |
DIFC steps up to 90 days after five years; ADGM stays at 30.
In DIFC, notice does not apply during probation or at the expiry of a fixed term. In ADGM, payment in lieu of notice needs the employee's written consent.
What you owe at exit
A mainland worker with at least one year of continuous service receives gratuity of 21 days of basic wage for each of the first five years and 30 days for each year after. The total cannot exceed two years' wage.
It runs on the last basic wage, excluding allowances such as housing and transport, with part years counted pro rata.
Multiply the days by the daily basic wage to get dirhams. The amount depends on the daily-rate method you apply, because the official page gives days and no formula.
- Deadline. All outstanding wages and gratuity are due within 14 days of termination, according to the government end-of-service page.
- Unused leave. Paid out at basic wage.
- Savings Scheme. Enrolled employees are no longer covered by gratuity, and the employer settles gratuity accrued before enrolment. The scheme is voluntary and no mandatory date has been announced.
DIFC and ADGM exit pay, and the repatriation rules, are in the three rulebooks section above. For an exit through a licensed employer, see the employer of record page.
Recent changes in UAE employment rules
The changes that matter are the AED 6,000 Emirati minimum from 1 January 2026, the wage-payment resolution from 1 June 2026, and a run of dated deadlines between 30 October 2026 and 1 July 2027.
- 31 August 2024. Federal Decree-Law 9/2024 raises labour-law fines for unauthorised employment and misuse of work permits to AED 100,000 to 1,000,000, up from AED 50,000 to 200,000 (Clyde & Co).
- 1 January 2025. Employer-funded health insurance becomes compulsory in the other five emirates (Clyde & Co).
- 1 April 2025. The ADGM Employment Regulations 2024 come into force (Clyde & Co).
- July 2025. The DIFC Employment Law is consolidated and amended up to this date.
- 28 October 2025. ADGM amends its probation section.
- 1 January 2026. The Emirati private-sector minimum rises to AED 6,000 a month (EY).
- 6 April 2026. The Nafis programme is extended to 2040 (EY).
- 1 June 2026. Resolution 340/2026 makes wages due on the 1st of the month and raises the WPS threshold to 85% (Morgan Lewis).
- 30 June and 1 July 2026. Employers must have raised pre-2026 Emirati hires to AED 6,000 by 30 June. From 1 July, employers with 50 or more staff that missed the first-half Emiratisation rate face financial contributions (Erickson Immigration Group).
- 7 August 2026. Ministerial Decision 131 extends Small Business Relief, for revenue up to AED 3 million, to tax periods ending on or before 31 December 2029 (Ministry of Finance, via Khaleej Times).
- The threshold, conditions and exclusions are unchanged (BIFI Partners).
- September 2026. Private-sector employers pay their full share of pension contributions for Emiratis enrolled in Nafis (Gulf News).
- 1 October 2026. Most amendments under Cabinet Decision 149/2026 to the VAT Executive Regulation take effect (KPMG); the contractors page covers it.
Not changing: the Savings Scheme stays voluntary, and no mandatory date has been announced.
Deadlines in the next six months
| Date | What | Who |
|---|---|---|
| 30 Oct 2026 | Appoint an Accredited Service Provider for e-invoicing. The date was extended from 31 July 2026, and the Ministry says no further extensions will be granted (MoF) | Businesses with revenue of AED 50 million or more |
| 31 Dec 2026 | End of the Emiratisation year: cumulative 10% Emirati share of skilled jobs | Employers with 50 or more workers |
| 1 Jan 2027 | E-invoicing goes live (MoF) | Businesses with revenue of AED 50 million or more |
| 31 Mar 2027 | Appoint an Accredited Service Provider; register for Corporate Tax if 2026 turnover exceeded AED 1,000,000, with an administrative penalty of AED 10,000 for missing the deadline (FTA) | Businesses under AED 50 million; natural persons with business turnover above AED 1,000,000 |
| 1 Jul 2027 | E-invoicing goes live | Businesses with revenue below AED 50 million |
What a mistake costs and who pays
Most penalties fall on the employer entity and scale per worker. Some are operational, such as a permit freeze, rather than a fine.
| Party | Risk | Amount |
|---|---|---|
| Employer | Mainland: employing without a valid permit, or misusing permits | AED 100,000 to 1,000,000 (Clyde & Co), multiplied by the workers involved, up to AED 10,000,000 in total (Decree-Law 33/2021) |
| Employer | Mainland: any other Labour Law violation | AED 5,000 to 1,000,000, doubled on a repeat within a year (Decree-Law 33/2021) |
| Employer | Mainland: late wages | Day 5: new work permits suspended. Day 21: attachment and travel ban; u.ae (payment of wages) |
| Employer | Mainland: with 50 or more workers, missing the Emirati skilled-job share | AED 6,000 a month per Emirati not employed, rising AED 1,000 a year until 2026; u.ae (Emiratis' employment) |
| Employer | Mainland: with 20 to 49 workers in 14 listed sectors, missing the required hires | AED 96,000 (January 2025, one Emirati) and AED 108,000 (January 2026, two Emiratis); u.ae (Emiratis' employment) |
| Employer | Mainland: paying an Emirati below AED 6,000 | The Emirati no longer counts towards Emiratisation targets, and new work permits can be suspended; EY (minimum salary) |
| Employer | Mainland: no health insurance | Fines and possible suspension, rejection or non-renewal of work permits; amount not stated (Gulf News) |
| Staffing provider | Mainland: placing staff without a MoHRE licence | No fine amount is published here; the licence itself needs a bank guarantee of AED 300,000 or AED 1,000,000; DLA Piper (licensing) |
| Employer | DIFC: breaching the DEWS payment rules | Up to USD 2,000 per contravention per employee; DIFC (Consolidated Version No. 5) |
| Employer | Mainland: unlawful dismissal | Compensation up to 3 months of last wage, plus notice and gratuity (Decree-Law 33/2021) |
| Employee | Mainland: leaving illegitimately before the term ends | One-year ban on a new work permit (Decree-Law 33/2021) |
| Foreign client | UAE corporate-tax nexus through a permanent establishment | Depends on taxable income; 9% above AED 375,000; FTA (Corporate Tax General Guide) |
Clyde & Co reads the wage resolution as leaving employers ultimately responsible for timely salary payment even when payroll is outsourced.
Treating an employee as a contractor feeds the first row. The blog post on employee misclassification penalties explains how that exposure arises.
Questions people actually ask
What is the minimum wage in the UAE?
The UAE has no general minimum wage for private-sector employees. Emiratis have a floor of AED 6,000 a month since 1 January 2026, up from AED 5,000, and it does not apply to expatriates.
Do expats pay income tax or social security in the UAE?
No personal income tax applies. Employers pay 0% social security for expatriates, because no pension scheme exists for them; end-of-service gratuity applies instead.
What is the rule for end-of-service pay in the UAE?
On the mainland, after one year of service: 21 days of basic wage per year for the first five years, 30 after, capped at two years' wage, paid within 14 days of exit. DIFC employers fund DEWS monthly.
Is it legal to work 12 hours a day in the UAE?
On the mainland, no. Normal hours are 8 a day or 48 a week, and overtime is capped at 2 hours a day, which gives 10 hours.
What are the new labour rules in the UAE in 2026?
Two stand out: the AED 6,000 Emirati minimum from 1 January 2026, and Resolution 340/2026 from 1 June 2026: wages due on the 1st, 85% paid on time through WPS. Earlier Emirati hires needed AED 6,000 by 30 June.
Can a foreign company hire in the UAE without setting up a company?
Not directly, because a work permit needs a licensed establishment. Use a licensed staffing company or a licensed freelancer. ADGM needs no permit for a remote employee who neither lives nor works in the UAE.
Do public holidays count as annual leave in the UAE?
On the mainland, yes, unless the contract is more favourable. In DIFC and ADGM they do not: the 20 working days of leave are exclusive of public holidays.
What is the average salary in the UAE?
No official figure published. The Central Bank of the UAE reports only the year-on-year change in the average WPS wage: down 2.3% in June 2026.
Sources
- UAE Government portal (u.ae). Work permits in the private sector. Accessed 6 October 2026.
- EY. UAE raises minimum salary for Emirati employees in the private sector effective 1 January 2026. Accessed 6 October 2026.
- Decree-Law 33/2021. Federal Decree-Law No. 33 of 2021 on labour relations. Accessed 6 October 2026.
- DLA Piper. New guidelines for recruitment agency licensing. Accessed 6 October 2026.
- Afridi & Angell. Hiring in the UAE: Overview. Accessed 6 October 2026.
- UAE Government portal (u.ae). Pension schemes for expatriate workers. Accessed 6 October 2026.
- DIFC. Employment Law, DIFC Law No. 2 of 2019. Accessed 6 October 2026.
- ADGM. Employment Regulations 2024, version of 28 October 2025. Accessed 6 October 2026.
- DIFC. Employment Law, Consolidated Version No. 5 (July 2025). Accessed 6 October 2026.
- Clyde & Co. The new ADGM Employment Regulations. Accessed 6 October 2026.
- UAE Government portal (u.ae). End of service benefits for employees in the private sector. Accessed 6 October 2026.
- Gulf News. UAE gratuity calculator: what are your end-of-service dues. Accessed 6 October 2026.
- Central Bank of the UAE. Quarterly Economic Review, September 2026. Accessed 6 October 2026.
- Clyde & Co. Nationwide extension of employer-funded compulsory health insurance. Accessed 6 October 2026.
- GDRFA. Work visa fee, Dubai. Accessed 6 October 2026.
- GDRFA. Residence permit for private-sector workers, Dubai. Accessed 6 October 2026.
- UAE Government portal (u.ae). Pensions and social security for UAE citizens. Accessed 6 October 2026.
- ILOE. Involuntary Loss of Employment insurance. Accessed 6 October 2026.
- DLA Piper. New UAE pensions law. Accessed 6 October 2026.
- GDRFA. Green residence for self-employment, Dubai. Accessed 6 October 2026.
- Abu Dhabi Department of Economic Development (ADDED). Abu Dhabi green visa for freelancers. Accessed 6 October 2026.
- UAE Government portal (u.ae). Payment of wages. Accessed 6 October 2026.
- Federal Tax Authority (FTA). Taxation of natural persons guide. Accessed 6 October 2026.
- UAE Government portal (u.ae). Employment of expatriates in privately held companies. Accessed 6 October 2026.
- UAE Government portal (u.ae). Emiratis' employment in the private sector. Accessed 6 October 2026.
- UAE Government portal (u.ae). Insurance system for employees in the private sector. Accessed 6 October 2026.
- ADGM Employment Affairs Office. Guidance on the Employment Regulations 2024 (February 2025). Accessed 6 October 2026.
- UAE Government portal (u.ae). Types of leaves. Accessed 6 October 2026.
- Federal Tax Authority (FTA). Permanent establishment. Accessed 6 October 2026.
- EY. UAE extends the Nafis programme until 2040. Accessed 6 October 2026.
- KPMG. Flash alert on the Nafis reform. Accessed 6 October 2026.
- Morgan Lewis. UAE tightens wage protection rules with new WPS resolution effective June 2026. Accessed 6 October 2026.
- Clyde & Co. UAE introduces stricter wage protection. Accessed 6 October 2026.
- UAE Government portal (u.ae). Taxation. Accessed 6 October 2026.
- Gulf News. Employers to bear their full share of pension contributions for Emirati employees. Accessed 6 October 2026.
- Federal Tax Authority (FTA). Corporate Tax General Guide. Accessed 6 October 2026.
- UAE Government portal (u.ae). Working hours. Accessed 6 October 2026.
- UAE Government portal (u.ae). Public holidays. Accessed 6 October 2026.
- Clyde & Co. Significant amendments to the UAE labour law. Accessed 6 October 2026.
- Erickson Immigration Group. UAE reminds private employers of June 2026 Emiratisation deadline. Accessed 6 October 2026.
- Khaleej Times. UAE extends corporate tax relief for small businesses until 2029. Accessed 6 October 2026.
- BIFI Partners. UAE Small Business Relief extended to 2029. Accessed 6 October 2026.
- KPMG. Cabinet Decision 149 of 2026 amending the VAT Executive Regulation. Accessed 6 October 2026.
- Ministry of Finance (MoF). UAE eInvoicing Programme update. Accessed 6 October 2026.
- MoF. Ministerial Decision No. 244 of 2025 on the Implementation of the Electronic Invoicing System. Accessed 6 October 2026.
- Federal Tax Authority (FTA). FTA urges natural persons to register for Corporate Tax before the end of March. Accessed 6 October 2026.
- Gulf News. UAE identifies six health insurance violations by employers. Accessed 6 October 2026.