# Hire in United Arab Emirates

Source: https://overseashire.com/hire/united-arab-emirates · verified 2026-10-05 · confidence medium

Zero personal income tax, a business-friendly regime and an international talent hub bridging Europe, Asia and Africa. Hiring costs include visas, insurance and gratuity but not social security for expatriates.

## Employer cost
Employer on-costs 5.75–12.5% of gross salary. Two different populations. Expatriates (non-GCC): no employer social security; the main statutory cost is end-of-service gratuity of 21 days' basic salary per year for the first 5 years (about 5.75% of annual basic, derived as 21/365) and 30 days per year after, plus mandatory health insurance in some emirates and visa/labour card fees (not itemised). UAE/GCC nationals: GPSSA employer contribution of 12.5% (PwC; 15% in Abu Dhabi). The DIFC uses a savings scheme (DEWS) at 5.83% or 8.33% of basic salary instead of gratuity.

| Contribution | Rate | Notes |
|---|---|---|
| End-of-service gratuity (mainland expatriates) | 21 days' basic pay per year (years 1-5), 30 days per year thereafter; capped at 2 years' total pay | An accrued liability rather than a periodic contribution; requires at least 1 year of service. |
| GPSSA pension (UAE / GCC nationals only) | 12.5% employer (federal); 15% in Abu Dhabi | Employee 5%; government 2.5% (6% in Abu Dhabi). PwC. |
| DEWS (DIFC Employee Workplace Savings Scheme) | 5.83% or 8.33% of basic salary | DIFC only; replaces gratuity from February 2020 (PwC). |

Mandatory benefits: End-of-service gratuity after 1 year; 30 calendar days' annual leave after one year; Mandatory health insurance (Dubai and Abu Dhabi; employer-paid in Dubai - not verified); Wages paid through the Wage Protection System (WPS); Return air ticket and housing only if contractually agreed

## Rules
- Payroll: Monthly via WPS (mandatory for mainland private sector); late payment attracts penalties
- Probation: Up to 6 months, once per employment; 14 days' notice during probation (30 days if the employee leaves to join another UAE employer).
- Notice and severance: Notice of 30 to 90 days under the labour law; gratuity of 21 days' basic pay per year for the first five years and 30 days thereafter, capped at two years' total salary. Pay in lieu of notice is permitted.
- Termination: Arbitrary dismissal can attract compensation (commonly cited up to 3 months' wages; not verified). Free-zone, DIFC and ADGM rules may differ from mainland law.
- Working time: 8 hours per day and 48 hours per week (Federal Decree-Law 33 of 2021); reduced by 2 hours daily during Ramadan; overtime up to 2 hours daily at +25%.
- Paid leave: 30 calendar days (2.5 days per month) per year after one year of service (Federal Decree-Law 33 of 2021); 2 days per month between 6 and 12 months; plus public holidays.
- Minimum wage: No general national minimum wage for expatriates in the private sector; Emirati private-sector pay floors exist under Emiratisation rules (not verified).

## Contractors
Freelance permits exist; true contractors need their own licence (free-zone freelancer permits are common). Misclassification risk is low to moderate; remote workers outside the UAE are not covered by UAE labour law.

## EOR
A foreign company can employ via a mainland LLC, free-zone company or an EOR. Work visas and Emirates ID require a UAE sponsor entity. UAE corporate tax of 9% applies to entities with taxable income above a threshold (not detailed here). Timelines not verified.
Onboarding: EOR not verified; own entity not verified.

## FAQ
**Are there social security contributions for expat employees?** No. Social security (GPSSA) applies only to UAE and GCC nationals; expats get end-of-service gratuity instead.

**What is the gratuity?** 21 days' basic salary per year for the first five years and 30 days per year thereafter, capped at two years' pay.

**Is there personal income tax?** No personal income tax per PwC.

**What is the probation limit?** Up to six months.

Unverified: Health insurance obligations by emirate; Emiratisation quotas; Dismissal compensation cap and contract-type rules; Exact gratuity wage base (basic salary) and treatment of unpaid leave; EOR/entity timelines; Corporate tax threshold details

Sources:
- https://taxsummaries.pwc.com/united-arab-emirates/individual/other-taxes
- https://www.pinsentmasons.com/en-gb/out-law/guides/new-uae-labour-law-for-employers
- https://www.remofirst.com/country-guide/united-arab-emirates
- https://ogletree.com/insights/the-new-uae-labor-law-implications-for-employers

Not legal or tax advice.