Hire employees and contractors in United Arab Emirates
Outstaffer’s guide to employing in United Arab Emirates.
Facts & stats
The United Arab Emirates is an elective monarchy of seven emirates crested on the Arabian peninsula.
Since oil was first discovered in 1958, the nation has rocketed to rapid growth in infrastructure, healthcare, and technology, and a tourism industry that sees over 20 million tourists visiting Dubai and Abu Dhabi.
The UAE, particularly Dubai, Abu Dhabi, and Sharjah, are home to a huge population of expats. Some of the world’s most talented professionals call the Emirates home and a significant portion of these workers have experience working with multi-nationals. Global employers will find a haven of talent on this small slice of Arabian land.
- Capital city
- Abu Dhabi
- Currency
- United Arab Emirates dirham (د.إ, AED)
- Official Languages
- Arabic
- Population size
- 9,890,400 (est. 2020)
- Ease of doing business
- Very Easy
- Cost of living index
- 61.67 (2021)
- Payroll frequency
- Monthly
- VAT - standard rate
- 5%
- GDP - real growth rate
- 1.7% (2019)
Tech Talent in United Arab Emirates
The United Arab Emirates (UAE) has rapidly emerged as a global hotspot for tech talent. With a strong focus on education and innovation, the UAE has cultivated a thriving community of skilled software developers, engineers, and IT professionals. Dubai, in particular, stands out as a vibrant tech hub, hosting numerous startups and attracting tech giants. The country's strategic location, supportive government policies, and investments in cutting-edge infrastructure have made it an ideal destination for tech companies and entrepreneurs from around the world. UAE tech talent is known for its diversity, expertise, and forward-thinking approach, making a significant impact on the country's transformation into a tech-driven economy.
Grow your team in United Arab Emirates with Outstaffer
We can help you pay and manage contractors in United Arab Emirates, but note that our employer of record service is not yet available in this country. We are busy building our own local entity to provide you with the best possible employment solutions for your employees.
To employ in United Arab Emirates, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like United Arab Emirates can get complicated fast, especially without localized expertise.
If you’re looking to start hiring in a country like this, partnering with a global employment solution like Outstaffer makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.
In the countries where we do offer our EOR services, Outstaffer takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Payroll cycle
For customers of Outstaffer, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
All employers are also required to pay their "rank-and-file employees" a 13th month payment. All employees not considered managerial employees are considered rank-and-file employees.
The 13th month payment is required regardless of the nature of the worker's employment (with few exceptions) provided they worked for at least one month during the calendar year.
The 13th month pay shall not be less than 1/12 of the total basic salary earned by an employee in a calendar year and should be given to the employees no later than December 24.
Employing in United Arab Emirates
Provisions for employee protections and workers’ rights are spelled out in the Labour Law of 1980 and the Federal Law No. 24 of 1981. Employees in the United Arab Emirates enjoy protections against discrimination based on age, religion, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.
To employ workers in the United Arab Emirates, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Jan 1
New Year's Day
April 20, 21, 22 and 23
Eid al Fitr
June 27
Arafat Day
June 28, 29, 30
Eid al Adha
July 19
Islamic New Year
Jul 4
Independence Day
September 27 – holiday on September 29
The Prophet Muhammad’s (PBUH) birthday
December 1
Commemoration Day
December 2, 3
National Day
Dec 31
New Year’s Day (in lieu)
Competitive benefits package in United Arab Emirates
Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.
Our benefits packages in India are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes in United Arab Emirates
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in United Arab Emirates.
Employer
12.5%: Social Security (basic social security plus housing allowance, charged on a minimum monthly salary of 1,000 AED and capped at 50,000 AED, i.e., $13,612.89)
Employee
5%: Social security (charged to Emiratis alone; foreigners exempt)
Types of leave
Paid time off
After the first year of employment, employees are entitled to a minimum of 30 days paid annual leave (equal to approximately 22 working days), with allowances to be paid before the vacation commences.
Public holidays
There are 7 public holidays lasting for 14 days annually.
Sick leave
After completing three months of employment, workers are entitled to 90 days of paid sick leave annually, provided a medical report is provided within the first 72 hours of illness.
The first 15 days of sick leave are fully paid at a rate of 100% of the employee’s normal wages, dropping to 50% from the 16 until the 45th day. Any sick leave exceeding 45 days is unpaid.
Maternity leave
Female employees are entitled to 45 days of fully paid maternity leave. Employees who have been employed for less than a year are entitled to just half the maternity benefits.
Paternity/parental leave
A male employee is entitled to up to 5 working days of paternity leave with full pay, which must be taken within six months from the birth date of the child.
Other leave
Hajj leave: Employees can take up to 30 days of unpaid leave to complete a pilgrimage to Mecca.
Employment termination
Termination process
Employee contracts can only be terminated according to terms spelled out in the Emirati Labour Law, and the relevant authorities must be informed accordingly.
Notice period
For unlimited term employment contracts, the minimum notice period is 1 month. The statutory maximum notice period is 3 months.
- 30 day written notice if the period of services is less than five years;
- 60 day written notice if the period of service exceeds five years; and
- 90 day written notice if the period of service exceeds 10 years.
During the probationary period, either party may terminate the employment without notice unless a probationary notice period is expressly provided in the employee's contract.
For fixed term contracts there is no obligation to provide a notice period. However, upon renewal, a notice period of between 1 -3 months must be provided for
Probation periods
Probation in the United Arab Emirates lasts anywhere from three to six months.
Severance pay
Employees who have been employed for at least a year are entitled to 21 working days’ pay for every year of employment and 30 days’ wages for each additional year, capped at two years’ pay.
Get started with Outstaffer in three easy steps
01. Book a call or sign up
Book a call with one of our Solutions Managers or create your free account. It’s quick, easy, and you’ll be ready to get started in minutes.
02. Add your people
From new hires to your existing team, onboard them seamlessly with our simple-to-use self-serve platform
03. Dedicated onboarding
Our dedicated team is here to guide you every step of the way ensuring you’re confident, supported, and set up for success.