Emirates Dirham
See how hiring works in United Arab Emirates
Learn about local payroll, taxes, and employment laws in Netherlands
Minimum Wage Requirements
In the UAE there is no minimum wage stipulated by law for expatriates.
Individual Income Tax
Employees pay no income tax. However, certain employees may be subject to social security contributions.
Payroll Cost
The estimated employer costs vary depending on the employee's nationality. For expat employees, the estimated employer cost is 0.06% of their monthly salary plus mandatory Health Insurance.
Social Security (UAE and GCC nationals only) - 12.5%-15%* of the employee's monthly gross salary for UAE nationals. The contribution percentage may vary for GCC nationals, capped at minimum salary for the contribution of AED 70,000. The cost may vary for GCC nationals.
Mandatory Private Health Insurance - Monthly estimate: AED 1,083.33
*12.5% for salaries below AED 20,000, 15% for salaries higher than AED 20,000, capped at minimum salary for the contribution of AED 70,000. The cost may vary for GCC nationals.
Additional information about the mandatory private health insurance
The cost for the medical insurance will be adjusted based on the gender, age, and marital status. An estimate for the cost ranges from AED 7,388 to AED 38,071 (including issuance fee and VAT) per year. The cost is invoiced annually. In the first invoice, this cost will be pro-rated from the enrolment date to the next policy expiration (June 8).
Please note: Visa fees will be determined case by case. Additional costs apply to employees who are UAE and GCC nationals.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Sunday to Thursday. During Ramadan work hours are reduced to 6 hours per day.
Overtime payment is mandatory for non-managerial positions. Managerial staff may take a day off in lieu if they have worked additional hours or days. Hours outside of standard work hours are considered overtime. Employees can not work more than a maximum of 2 hours of overtime per day or 144 hours in total over a 3 week period. For additional hours, employees are paid:
- General Overtime - 125% of the hourly rate
- Between 10pm and 4am - 150% of the hourly rate
- Weekends and public holidays - 150% of the hourly rate
Maternity Leave
Pregnant employees are entitled to 45 days of paid leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.
Paternity Leave
There is no paternity leave currently required by law.
Parental Leave
Eligible employees are entitled to 5 working days of paid leave within the first 6 months after the birth of their child. After this, they are entitled to 45 days of unpaid leave. Employees must provide proof in the form of a medical certificate when they request leave on the platform.
Sick Leave
Employees are entitled to paid sick leave for up to 90 days. The requirement to grant this leave is that the employee worked at least 3 months for the employer after the probation period has ended. This leave is paid at different rates and by the employer:
| Period | Pay | Payer |
|---|---|---|
| 0 - 15 days | 100% of basic salary | Employer |
| 15 - 45 days | 50% | Employer |
| 45 - 90 days | 0% | N/A |
Termination Requirements
Terminations must respect complex rules and the rules of an employee's employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Employers can unilaterally terminate contracts at any time as long as proper legal notice requirements and compensation are followed. Terminations without notice must be for cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer:
- — Without cause providing notice and required compensation
- — For cause without notice
- ▪ Probation period
- ▪ Objective grounds
- ▪ Disciplinary dismissal
- ▪ Performance due to unsuitability for the job
- By the expiration of the contract
Notice Period
The minimum notice period is 1 month and the maximum is 3 months. The amount must be agreed upon between the employee and the employer.
Severance for Employees
In the UAE, all employees who are terminated, unless terminated under Article 120 of the Labor Law, are entitled to severance pay. Severance pay is 21 working days of salary for each of the first five years of services and an additional 30 working days per year of service over five years up to a maximum of 2 years based compensation.
To protect you from unforeseen financial risks arising from terminations, Deal applies a Severance Accrual to all employment agreements in this country. Deal has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Employees in the United Arab Emirates who work five days per week are entitled to a minimum of 30 calendar days of vacation per year. This accrues at a rate of 2.5 days per month. Employees can only take vacation days after 6 months of employment at a rate of 2 days per month during the rest of their first year of employment. Once the employee surpasses 12 months of employment, they are entitled to the minimum of 30 calendar days of vacation per year.
Public Holidays
There are 15 regular public holidays in the United Arab Emirates. Public holidays include both fixed-date and moveable holidays that change annually.
- New Year's Day: January 1
- Eid al-Fitr (4 days)
- Arafat Day
- Eid al-Adha (4 days)
- Islamic New Year
- Prophet Muhammad's Birthday
- Commemoration Day: December 1
- National Day: December 2
- National Day: December 3
Onboarding
Onboarding can vary according to the type of visa the employee will require. Onboarding with a visa, the average time is 3 business days. Onboarding nationals is a minimum of 3 business days after SOW is signed, pending deposit payment and submission of all required employee information.
Employment Contract Details
Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.
All requested contracts must have a deposit paid in order to execute the visa process - UAE visa have a liability on Deal since we must pay the employees once the Visa is issued - accordingly if the client decides to cancel the contract after the visa is granted we will be at risk. A contract must include:
- name
- start date
- length of the employment
- job description
- termination conditions
- monthly gross salary details, with breakdown
- probation period and notice period details
- gratuity details
- annual leave days
Employees can be hired on limited and fixed-term contracts.
The maximum length of a contract can be 10 years, and it can be renewed for the same period of time.
Indefinite-term contracts are not allowed.
Contract backdating is not allowed.
Probation Period
Probation periods are mandatory in the UAE. The legal maximum probation period is 3 months with an option to extend for another 3 months.
How it works
Your Global Hiring Process
We take care of employing your team, so you can focus on growing
You choose the talent
You select the candidate you want to hire, anywhere in the world.
We employ them for you
MB Remote becomes the legal employer and handles contracts, payroll, and local labor laws.
Your team starts working
Your employee works directly with you, just like an in-house team member.
We manage compliance
We ensure ongoing payroll, taxes, and legal compliance in the employee’s country.
Frequently Asked Questions
These are the most commonly asked questions about the Employer of Record Can’t find what you’re looking for? Get in touch with an expert
Is it free to contact MB Remote?
Yes. Contacting us is completely free and without obligation. We’ll discuss your needs and explain how our EOR solution works before anything else.
How long does it take to hire an employee?
Hiring can usually be completed within a few days, depending on the country and local requirements.
What is an Employer of Record (EOR)?
An Employer of Record is a legal entity that employs workers on your behalf. MB Remote handles contracts, payroll, taxes, and local labor law compliance, while you manage the day-to-day work.
Who is the legal employer of the employee?
MB Remote is the legal employer, but the employee works exclusively for you as part of your team.
In which countries can you hire employees?
We support hiring in multiple countries. Contact us to check availability for a specific location.
How does payroll work?
We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.
Is my company still in control of the employee?
Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.