United Arab Emirates

Last Update by Federico, 04 Dec 2024

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Exchange Rate

22 Jan 2025

 

Cost of Living

Indicative value for a working adult in a city: Dubai

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (AED)
McDonalds Set Meal 35
Monthly Train and Bus Tickets 300
3 Bedrooms Rental (City Center) 15,000
3 Bedrooms Rental (Outskirt) 10,500

Current Inflation Rate

3.4%

Wage

Minimum Wages

  • No national minimum wage

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (AED)
Entry-Level
Fresh Graduate
 11,000
Mid-Level
5 Years
 15,800
Experienced & Managerial Level
10 Years
 25,000
Specialized & Senior-Level
15 Years
 40,000

Annual Salary Growth

5%

Statutory Contribution

Contribution should be paid before 15th of the following month.

Country Level

Type Employer Rates Employee Rates Notes
Social Security 12.5%, capped at 6,250 AED
15% in Abu Dhabi 		5% All eligible Emiratis and GCC nationals based on monthly minimum of 1,000 AED and maximum of 50,000 AED.
DEWS (DIFC Employee Workplace Savings Plan) 5.83% if work period under 5 years
8.33% for over 5 years of employment 		Voluntary contribution Only for the employer in DIFC
Unemployment Insurance Plan - 5 AED - monthly salary under 16,000 AED
10 AED - monthly salary over 16,000 AED 		All staff excluding investors, domestic workers, temporary workers, under 18 and working pensioners

Other Benefit

Other common employment benefits in United Arab Emirates include:

  • Additional Health Insurance: About 120 USD per month for non-citizens. Emirates citizens' premium provided by the government and taxed in USD.

Income Tax

Residents

  • There is no federal or Emirate-Level personal income tax in the UAE.

Working Hours

Statutory

48 Hours or 8 hours a day for 6 days

Typical practice

48 Hours
Monday - Friday or Sunday - Thursday (depending on the company)
(during Ramadan, working hours reduced by 2 hours daily)

Overtime

Overtime cannot be more than 2 hours a day.

  • Workday day: Paid at 125% of monthly salary
  • Night work: 22:00-04:00: 150% of monthly salary
  • Rest days: 150% of monthly salary or 1 day leave in lieu

Employment Contract

Fixed-Term

Contract Format

Written, in Arabic and English. Arabic part will be the legal one.

Payroll Currency

AED

Probation

Typically 1 month, cannot exceed 6 months.

Contract Period

Contracts issued after 1 January 2024 must be fixed-term, cannot be longer than 3 years and last as long as the residency visa.
Can be renewed, if both parties agree. If the contract expires, the new term cannot be longer than the original.

Termination

In UAE the termination process adheres to the following rules:

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation - Resignation by staff to join a new company: 1 month, or the new employer compensates the current employer for recruitment costs - Resignation by staff leaving the UAE and role: 14 days’ written notice - Termination by employer: 14 days’ written notice - Termination by employer: 14 days’ written notice
Notice Period - Regular Employers based in DIFC (Dubai International Financial Center): - Under 3 months' service: 1 week - Over 3 months service - 5 years' service: 3 months - Employer's based in ADGM (Abu Dhabi Global Market): Over 3 months' service: 1 month Employers based in DIFC (Dubai International Financial Center): - Under 3 months' service: 1 week - Over 3 months service - 5 years' service: 3 months - Employer's based in ADGM (Abu Dhabi Global Market): Over 3 months' service: 1 month Employers based in DIFC (Dubai International Financial Center): - Under 3 months' service: 1 week - Over 3 months service - 5 years' service: 3 months - Employer's based in ADGM (Abu Dhabi Global Market): Over 3 months' service: 1 month
Severance Pay - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary - 1 - 5 years' service: 21 days' salary for each year - 5+ years' service : 30 days' salary for each year, capped at 2 years' salary

Public Holiday

14 days

Country Level

Date Name
01 Jan New Year's Day
31 Mar - 02 Apr Eid al-Fitr
06 Jun Arafat Day
07 Jun - 08 Jun Eid al-Adha
27 Jun Hijri New Year
05 Sep Prophet Muhammad’s Birthday
01 Dec Commemoration Day,
02 Dec - 03 Dec National Day

Leave

Leave Type Entitlement Notes
Annual Leave 30 calendar days (inclusive of public holiday) All staff with 1 year service
Sick Leave 90 working days per year All staff after probation (3 months)
Maternity Leave
Nursing Breaks 		90 calendar days
1 hour per day 		All expectant mothers
All mothers up till child is 6 months
Parental Leave 5 working days All eligible parents in the private sector for children up to 6 months old
Hajj and Umrah (pilgrimage) Leave 30 calendar days All staff to be used once in the employment lifecycle
Compassionate Leave 3 working days – Death of a parent, sibling, child, or grandparent
5 working days – Death of a spouse 		All staff in the private sector
Study Leave Up to 10 working days All staff with 2 years' service with the same employer in the private sector

Reference

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