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$249/month
$49/month
2% of gross salary / month
The United Arab Emirates (UAE) is a Middle Eastern country bordering Oman and Saudi Arabia. Famous for the cities of Dubai and Abu Dhabi, the UAE this country was once controlled by the Portuguese and then the British, gaining independence in 1971. Since that time, it has grown into one of the wealthiest countries in the world based largely on its large oil and gas reserves. The country’s GDP has grown steadily for decades, reaching $504.17 billion in 2023, and is set to expand by another 3.5% in 2024. Working with an EOR is a great way to hire workers in the UAE and get them on your payroll quickly.
Hire in United Arab Emirates, and pay employees through our platform or app.
Our United Arab Emirates EOR solution is the most affordable on the market.
Fast United Arab Emirates onboarding, hire in as little as 24 hours.
We draft compliant United Arab Emirates labor contracts.
We manage all United Arab Emirates mandatory benefits.
It doesn’t stop with United Arab Emirates — we hire employees globally.
An EOR or employer of record in the United Arab Emirates is a service provider that specializes in hiring local workers on behalf of other companies. This arrangement allows foreign-based companies that do not own entities in the UAE to employ workers here legally. Client companies pay a fee for the EOR to hire and manage the human resources (HR) functions needed to manage UAE employees.
The many advantages of working with an EOR in the UAE include:
Horizons stands out as a UAE EOR through:
An EOR in the United Arab Emirates works as a partner that allows you to hire local workers in this country. An EOR will normally provide the following services:
Unions and the right to strike are not recognized in the UAE. At the same time, however, there is a significant body of law in place that protects the rights of both workers and employers. These statutes are spread across various legal instruments such as the Constitution of the United Arab Emirates 1971, the Federal Law for Pension and Social
Security (No. 7 of 1999), the Ministerial Resolution on defining work that is hazardous, tiresome, or harmful to health or morals, and where women should not be employed therein (No. 6/1 of 1981), and many other laws and decrees. While the EOR will manage compliance with these various laws, it’s useful to be aware of the main points that will let you know what your UAE workers will be entitled to.
Both permanent (indefinite) and fixed-term (definite) contracts are allowed in the UAE. Fixed-term contracts can last a maximum of three years, though they can be renewed. All contracts must be in writing and include the name and address of the employer; name, nationality, birth date, and qualification of the worker; proof of the worker’s identity; job description; workplace; working hours and rest days; start date; probationary period; term of the contract; wage, benefits, and allowances, annual leave; and notice period and procedures for termination.
No probationary period.
At completion of the project.
Not applicable
Typically up to 6 months
30 days (minimum and maximum allowed by labor law)
21 days salary for the first 5 years.
30 days salary for additional years.
Typically up to 6 months
30 days (minimum and maximum allowed by labor law)
21 days salary for the first 5 years.
30 days salary for additional years.
The standard working hours in the UAE are eight hours a day and six days a week for a total of 48 hours per week. These workdays are reduced by two hours per day during the month of Ramadan. Overtime is allowed to a maximum of three hours per day or not more than a total of 60 working hours in a week. However, in a three-week period, total working hours cannot exceed 144 hours.
125% of the standard hourly rate
150% of the standard hourly rate
150% of the standard hourly rate
United Arab Emirates employees are entitled to at least 11 paid public holidays each year.
The United Arab Emirates public holiday schedule for 2024 is:
| Date | Holiday name |
|---|---|
| 1 Jan, 2024 | International New Year’s Day |
| 8 Apr to 12 Apr | Eid al Fitr |
| 15 Jun, 2024 | Arafat Day |
| 16 Jun to 18 Jun | Eid al Adha |
| 7 Jul, 2024 | Hijri New Year’s Day |
| 15 Sep, 2024 | Birthday of the Prophet |
| 30 Nov, 2024 | Martyrs Day / Commemoration Day |
| 2 Dec, 2024 | National Day |
Workers cannot work more than five hours without receiving a break or breaks totaling one hour in length. These breaks are not paid. Each week, the employee is entitled to one 24-hour period of rest. They can work on these rest days for a premium but cannot work on rest days two weeks in a row.
no leave entitlement
30 days of paid leave annually
30 days of paid leave annually
30 days of paid leave annually
After completing their probationary periods, workers are entitled to 90 days of sick leave per year. The first 15 days are fully paid, the next 30 days are paid at half wages, and the remaining 45 days are unpaid.
(percentage of regular wages owed to the employee)
90 days of paid leave annually
90 days of paid leave annually
90 days of paid leave annually
90 days of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Expecting mothers are entitled to a minimum of 60 days of maternity leave, 45 at full pay and 15 at half-pay (paid by the employer). Another 45 days of unpaid leave may be added in the case of complications. New fathers who have already worked for one year are allowed five days of paid paternity leave after the birth or adoption of a child.
After working for six months, employees become eligible for 30 days of leave each year. Up to half of the annual leave allowance can be carried over to a maximum of two years.
Employers can terminate workers for gross misconduct without notice. Otherwise, terminated workers must receive 30 days’ notice if they have worked for less than five years for the employer, 60 days’ notice for five to ten years of service, and 90 days’ notice for service over 10 years. Any worker with over one year of service is entitled to severance pay of 21 calendar day’s wages for each of the first five years of service. They receive 30 calendar days’ pay per year for each year of service after that.
Social security contributions are primarily relevant for UAE nationals and GCC (Gulf Cooperation Council) nationals. Expatriates from other countries typically do not participate in the UAE’s social security system and instead might have end-of-service benefits.
Social security contributions include 5% from the employee, 12.5% from the employer, and 2.5% from the government. As for GCC nationals, contribution vary based on the regulation of their home country.
The social security contributions do not apply to expatriates (foreigners) who are non-GCC nationals. Instead, expatriates are entitled to an end-of-service gratuity (EOSG) when their employment contract ends.
This gratuity is calculated based on the employee’s last drawn basic salary and is intended to provide a lump-sum payment at the end of employment.
The UAE does not impose a federal income tax on individuals.
Health insurance is mandatory and is regulated at the emirate level, with specific requirements differing slightly between emirates.
Basic coverage typically includes inpatient and outpatient treatments, emergency services, surgeries, maternity care, and essential medications.
The federally mandated minimum wage is surprisingly low in the UAE, reflecting the trend to pay immigrant workers much lower wages than Emiratis. Unlike in other countries, the minimum wage is based on education. Workers with no high school certificate must be paid at least 300 AED (United Arab Emirates Dirham)/month (about 80 USD). High school graduates must receive at least 400 AED/month (about 110 USD), and degree holders 500 AED/month (about 135 USD). Average salaries for skilled workers are much higher at 10,000-15,000 AED/month (2,700-4,000 USD).
Overtime hours must be paid at the rate of at least 125% of normal wages, and at night (10:00 p.m. to 4:00 a.m.) workers must receive 150% of normal wages for overtime work. Work performed on rest days or public holidays must also be paid at 150% of normal wages.
A 13th-month annual bonus is not mandatory in the United Arab Emirates. While not mandatory, some employers may choose to grant an annual bonus to incentivize their workers.
Contributions in the UAE amount to a 26% contribution to the Federal Pension and Social Security Scheme. The employee is deducted 11% of their salary, and the employer pays an extra 15% on top of the salary for these contributions.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
As the sole legal employer of your workers in the UAE, the EOR has the duty to maintain constant compliance with all local tax and employment laws. It does this with the help of local legal experts, whose recommendations help define the contracts it enters into with the employees. The EOR also runs payroll and calculates salaries, tax withholdings, and social security contributions to ensure they are always correct and paid on time.
The most significant benefit you can gain from working with an EOR in the UAE is that it allows you to hire workers there without needing to own a registered business in the country. Many EORs can also assist with recruiting and can hire and onboard your workers extremely efficiently. They also manage your employees’ HR needs and maintain compliance with local laws, so you only need to focus on managing their work.
Holiday Schedule in United Arab Emirates [2024]
