Good to know
Local Currency: United Arab Emirates Dirham (AED)
Minimum Salary: There is no national minimum wage.
The Ministry of Human Resources and Emiratisation (MoHRE) has implemented a new labor law known as the UAE Labor Law since February 2, 2022. The determination of a national minimum wage is expected.
Salary Calculation: gross to net
Legal Working Hours: 8 hours per day or 48 hours per week in the private sector.
Paid Leave: employees are entitled to a fully paid annual leave of :
- 30 days, if they have completed one year of service.
- 2 days per month, if they have completed less than one year of service but at least six months.
About the United Arab Emirates
The United Arab Emirates is a federal state in the Middle East composed of seven emirates. The capital of the country is Abu Dhabi, but the economic capital of the federation is Dubai.
The UAE is the 8th largest oil producer and exporter in the world. Beyond hydrocarbons, the country has also been active in the new technology, real estate and luxury tourism sectors in recent years.
Fun fact: the tallest building in the world is the Burj Khalifa and it is located in Dubai. The building is 828 meters high and has held this record since its construction.
Are you planning to settle in the United Arab Emirates? Do you need help with payroll or human resources management? Our Emiratis payroll and HR experts will ensure that you get a fast and accurate service in full compliance with UAE laws.
Ready to Benefit from HR & Payroll Experts?
The Social Security in the UAE
There is a social security system in the UAE that applies only to qualified employees of the UAE and other Gulf Cooperation Council (GCC) countries. Non-GCC nationals are not subject to social security in the UAE.
Social Contributions in the UAE
Amount of contributions
For employees who are UAE nationals, social security contributions are calculated at a rate of 20% of the employee’s gross pay.
Of the 20%,
- 5% is payable by the employee
- 12.5% is paid by the employer
- An additional 2.5% is contributed by the government.
A higher rate of 26% applies in the Emirate of Abu Dhabi, where the employer’s contribution is increased to 15%, the government’s to 6% and the employee’s to 5%.
For other GCC nationals working in the UAE, social security contributions are determined in accordance with the social security regulations of their home country.
Management rules
The employer has the responsibility of both withholding and remitting their employees’ social security contributions, which are required payments to the General Authority for Pensions and Social Security (GPSSA).
In addition, employers are obligated to provide medical insurance to their employees, register a UAE or GCC national with the GPSSA within a month of their hiring, and process social security payments for UAE nationals through the UAEFTS.
This electronic fund transfer system is authorized by the GPSSA and can be accessed through all banks regulated by the UAE Central Bank. Companies and branches registered in a free trade zone (FTZ) must also fulfill their social security obligations for their employees.
Personal Income Tax
There is currently no personal income tax applicable in the UAE.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the United Arab Emirates.
Our Payroll and HR services in the UAE
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Sources: PWC, The United Arab Emirates Government Portal:
- https://u.ae/en/information-and-services/jobs/payment-of-wages
- https://u.ae/en/information-and- services/jobs/employment-laws-and-regulations-in-the-private-sector
- https://u.ae/en/information-and-services/jobs/working-hours#:~:text=Article%2017%20of%20the%20Federal,or%2048%20hours%20per%20week.
- https://u.ae/en/information-and-services/jobs/types-of-leaves-and-entitlements-in-the-private-sector/annual-leave
HR & Payroll in the United Arab Emirates
HR & Payroll in the United Arab Emirates
Good to know
Local Currency: United Arab Emirates Dirham (AED)
Minimum Salary: There is no national minimum wage.
The Ministry of Human Resources and Emiratisation (MoHRE) has implemented a new labor law known as the UAE Labor Law since February 2, 2022. The determination of a national minimum wage is expected.
Salary calculation: gross to net
Legal working hours: 8 hours per day or 48 hours per week in the private sector.
Paid Leave: Employees are entitled to a fully paid annual leave of :
- 30 days, if they have completed one year of service.
- 2 days per month, if they have completed less than one year of service but at least six months.
Ready to Benefit from HR & Payroll Experts?
About the United Arab Emirates
The United Arab Emirates is a federal state in the Middle East composed of seven emirates. The capital of the country is Abu Dhabi, but the economic capital of the federation is Dubai.
The UAE is the 8th largest oil producer and exporter in the world. Beyond hydrocarbons, the country has also been active in the new technology, real estate and luxury tourism sectors in recent years.
Fun fact: the tallest building in the world is the Burj Khalifa and it is located in Dubai. The building is 828 meters high and has held this record since its construction.
Are you planning to settle in the United Arab Emirates? Do you need help with payroll or human resources management? Our Emiratis payroll and HR experts will ensure that you get a fast and accurate service in full compliance with UAE laws.
The Social Security in the UAE
There is a social security system in the UAE that applies only to qualified employees of the UAE and other Gulf Cooperation Council (GCC) countries. Non-GCC nationals are not subject to social security in the UAE.
Social Contributions in the UAE
Amount of contributions
For employees who are UAE nationals, social security contributions are calculated at a rate of 20% of the employee’s gross pay.
Of the 20%,
- 5% is payable by the employee
- 12.5% is paid by the employer
- An additional 2.5% is contributed by the government.
A higher rate of 26% applies in the Emirate of Abu Dhabi, where the employer’s contribution is increased to 15%, the government’s to 6% and the employee’s to 5%.
For other GCC nationals working in the UAE, social security contributions are determined in accordance with the social security regulations of their home country.
Management rules
The employer has the responsibility of both withholding and remitting their employees’ social security contributions, which are required payments to the General Authority for Pensions and Social Security (GPSSA).
In addition, employers are obligated to provide medical insurance to their employees, register a UAE or GCC national with the GPSSA within a month of their hiring, and process social security payments for UAE nationals through the UAEFTS.
This electronic fund transfer system is authorized by the GPSSA and can be accessed through all banks regulated by the UAE Central Bank. Companies and branches registered in a free trade zone (FTZ) must also fulfill their social security obligations for their employees.
Personal Income Tax
There is currently no personal income tax applicable in the UAE.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the United Arab Emirates.
Our Payroll and HR services in the UAE
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: United Arab Emirates Dirham (AED)
Minimum Salary: There is no national minimum wage.
The Ministry of Human Resources and Emiratisation (MoHRE) has implemented a new labor law known as the UAE Labor Law since February 2, 2022. The determination of a national minimum wage is expected.
Salary Calculation: gross to net
Legal Working Hours: 8 hours per day or 48 hours per week in the private sector.
Paid Leave: employees are entitled to a fully paid annual leave of :
- 30 days, if they have completed one year of service.
- 2 days per month, if they have completed less than one year of service but at least six months.
Ready to Benefit from HR & Payroll Experts?
About the United Arab Emirates
The United Arab Emirates is a federal state in the Middle East composed of seven emirates. The capital of the country is Abu Dhabi, but the economic capital of the federation is Dubai.
The UAE is the 8th largest oil producer and exporter in the world. Beyond hydrocarbons, the country has also been active in the new technology, real estate and luxury tourism sectors in recent years.
Fun fact: the tallest building in the world is the Burj Khalifa and it is located in Dubai. The building is 828 meters high and has held this record since its construction.
Are you planning to settle in the United Arab Emirates? Do you need help with payroll or human resources management? Our Emiratis payroll and HR experts will ensure that you get a fast and accurate service in full compliance with UAE laws.
Are you planning to settle in the Czech Republic? Do you need help with payroll or human resources management? Our Czech payroll and human resources experts will provide you with a fast and accurate service in full compliance with Czech legislation.
The Social Security in the UAE
There is a social security system in the UAE that applies only to qualified employees of the UAE and other Gulf Cooperation Council (GCC) countries. Non-GCC nationals are not subject to social security in the UAE.
Social Contributions in the UAE
Amount of contributions
For employees who are UAE nationals, social security contributions are calculated at a rate of 20% of the employee’s gross pay.
Of the 20%,
- 5% is payable by the employee
- 12.5% is paid by the employer
- An additional 2.5% is contributed by the government.
A higher rate of 26% applies in the Emirate of Abu Dhabi, where the employer’s contribution is increased to 15%, the government’s to 6% and the employee’s to 5%.
For other GCC nationals working in the UAE, social security contributions are determined in accordance with the social security regulations of their home country.
Management rules
The employer has the responsibility of both withholding and remitting their employees’ social security contributions, which are required payments to the General Authority for Pensions and Social Security (GPSSA).
In addition, employers are obligated to provide medical insurance to their employees, register a UAE or GCC national with the GPSSA within a month of their hiring, and process social security payments for UAE nationals through the UAEFTS.
This electronic fund transfer system is authorized by the GPSSA and can be accessed through all banks regulated by the UAE Central Bank. Companies and branches registered in a free trade zone (FTZ) must also fulfill their social security obligations for their employees.
Personal Income Tax
There is currently no personal income tax applicable in the UAE.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the United Arab Emirates.
Our Payroll and HR services in the UAE
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Sources: PWC, The United Arab Emirates Government Portal:
- https://u.ae/en/information-and-services/jobs/payment-of-wages
- https://u.ae/en/information-and- services/jobs/employment-laws-and-regulations-in-the-private-sector
- https://u.ae/en/information-and-services/jobs/working-hours#:~:text=Article%2017%20of%20the%20Federal,or%2048%20hours%20per%20week.
- https://u.ae/en/information-and-services/jobs/types-of-leaves-and-entitlements-in-the-private-sector/annual-leave