🇦🇪 Hire in United Arab Emirates: cost, rules and best EOR options
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 on-costs: 5.75–12.5% of gross salary (on a $60,000 salary, about $63,450–$67,500 total)
- EOR onboarding: not verified; own entity: not verified
- Probation: Up to 6 months, once per employment; 14 days' notice during probation (30 days if the employee leaves to join another UAE employer).
- Currency: UAE dirham (AED)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in United Arab Emirates
Employer on-costs run roughly 5.75–12.5% on top 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). |
No personal income tax, capital gains tax or wealth tax (PwC). Employees pay a small ILOE unemployment insurance subscription (AED 5 monthly up to AED 16,000 pay; AED 10 above) from January 2023. National employees contribute 5% to GPSSA.
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
Employment rules at a glance
| 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 & 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. |
| 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). |
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.
Employee or contractor in United Arab Emirates?
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.
Compare contractor vs employee cost →
Hiring through an EOR in United Arab Emirates
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.
Typical onboarding: EOR not verified; own entity not verified. GST, UTC+4 all year with no DST; 8 hours ahead of US Eastern in winter and 9 in summer. Weekend is Saturday-Sunday for the federal government.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in United Arab Emirates
Related
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.