United Arab Emirates (UAE) is a country in the Middle East region bordered by Oman and Saudi Arabia. Dubai is the country’s most populous city and is considered a major international hub with many digital nomads choosing to work in Dubai.

Ever since oil was discovered in the area in 1958, the country has had rapid growth in infrastructure, healthcare, and technology, and a tourism industry that sees over 20 million tourists visiting Dubai and Abu Dhabi.

All employment information on this page reflects Federal Decree Law No. 33 of 2021, which replaced the prior UAE Labour Law and took effect on 2 February 2022. If your employment contracts were issued before this date, verify they have been updated to comply with the new law

Types of Contracts

Under Federal Decree Law No. 33 of 2021, all UAE employment contracts must be fixed-term — unlimited contracts were abolished from February 2022. The maximum contract duration is 2 years. Contracts automatically renew for the same period (or a shorter agreed period) unless either party gives notice of non-renewal. There is no limit on the number of renewals.

Job Title Restrictions

UAE law does not restrict any job titles. However, Remofirst's EOR model in the UAE does not currently support C-level titles (CEO, CFO, CTO etc.) due to the operational structure of EOR employment in the UAE. If you need to hire at C-level, speak to your Remofirst account manager about alternative structures.

Working Hours

The maximum amount of working hours is 8 hours per day, 48 hours per week. Work hours are reduced to 6 hours per day during Ramadan. If an employee works beyond the maximum of 48 hours, they will be paid overtime as follows:

• Normal work hours: Basic salary plus an additional 25%
• Off days and Public Holidays: Basic salary plus an additional 50%

Minimum Wage

There is no statutory minimum wage for expatriate employees in the UAE. The AED 5,000 figure sometimes cited is a broad economy-wide average that includes low-wage sectors such as construction and domestic work. For professional, technology, and management roles — the typical profile for EOR hires — market salaries generally range from AED 8,000 to AED 25,000+/month depending on seniority and emirate. UAE nationals have a minimum salary reference under Emiratisation (Nafis) requirements for private sector roles.

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Wage Deductions

Employers cannot deduct any fees associated with relocation (visa/repatriation expenses, etc). Any deductions due to employee misconduct should not exceed 5 days’ wages.

Probation Period

Probation can be a maximum of 6 months. The typical probation period lasts 3 months. During probation, notice for both the employer and employee is 14 days, unless specified.

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Taxes & Local Employment Costs

Employee Taxes

There are no taxes applicable to the employee's salary.

However, employees must register for the Involuntary Loss of Employment (ILOE) insurance scheme independently through the government portal:

• Employees earning up to AED 16,000/month: AED 60/year
• Employees earning above AED 16,000/month: AED 120/year

This is an employee obligation — not an employer cost. ILOE provides a temporary benefit of 60% of average salary for up to 3 months if an employee loses their job involuntarily.

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Employer Taxes & Contributions

There are no taxes applicable for the employer to contribute to.

However, employers must provide mandatory medical insurance; costs for these vary according to the plan chosen and the employee’s age and gender.

UAE National Employees: Employers hiring UAE nationals must contribute to the General Pension and Social Security Authority (GPSSA):

• Employer contribution: 12.5% of basic salary (15% in Abu Dhabi)
• Employee contribution: 5% of basic salary

This applies to UAE and GCC national employees only. Expatriate employees are not covered by the GPSSA scheme and no social security contributions are required for them.

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Annual Leave

Employees are entitled to 30 days of leave (minimum 22 working days). The employee is entitled to this once they have completed probation (though this is at the discretion of the employer and 99% of the time employees take annual leave during this time).

At the end of the year, unused leave can be paid out in salary. Alternatively, 5 days of annual leave can be carried over to the next calendar year, but needs to be used before March 31st. By mutual agreement, more days can be rolled over, though the government will only guarantee 5 days.

Sick Leave

Employees are entitled to 15 days of sick leave with full pay, 30 days with half pay, and 45 days unpaid.

Maternity Leave

Female employees are entitled to 45 days of paid maternity leave and 15 days with half pay.

Following the paid maternity leave period, employees are entitled to an additional unpaid leave of up to 6 months to care for a newborn or sick child (Federal Decree Law 33/2021 Art. 30). Employers cannot terminate a pregnant employee or an employee on maternity leave.

Paternity Leave

New fathers in the UAE are entitled to five working days of paternity leave with full pay, which they can choose to take consecutively or at any time during the first six months after the birth of the child.

Public Holidays

The UAE observes approximately 13–14 public holidays per year (2025). Several dates — including Eid Al-Fitr, Eid Al-Adha, and Islamic New Year — follow the lunar calendar and are confirmed closer to the date by the government. Check the UAE government portal (u.ae) for the confirmed 2025 public holiday schedule.

See this list for public holidays in UAE.

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Benefits

Companies typically provide the following benefits in UAE:

• Life Insurance
• Education allowance (families)
• Food Allowance
• Expat Air Fare (for expats)

Medical Insurance

As the employer, it is mandatory to provide medical insurance in the UAE. Medical insurance costs vary according to the plan chosen and the employee’s age and gender.

Notice Period

The minimum notice period after probation is 30 days which can be extended up to 3 months. Extensions are typically given to employees in senior level roles.

Payment in lieu of notice is possible. During probation, the notice is 14 days.

Statutory Payments

Gratuity is mandatory for all employees who have completed at least 12 months of continuous service. Under the 2021 Labour Law, full gratuity is payable on both termination and resignation — the prior law's reduced gratuity for voluntary resignation was abolished in 2022.

Calculation:

• First 5 years of service: 21 calendar days of basic salary per year
• Beyond 5 years: 30 calendar days of basic salary per year

The total gratuity payment is capped at 2 years of basic salary regardless of service length.

Gratuity is calculated on basic salary only — allowances (housing, transport, etc.) are excluded from the calculation.

Severance: If an employee is terminated unlawfully, they may raise a case and be entitled to 3 months' salary by the courts.

Leave: Any unused leave should be paid out to the employee in their final salary.

DIFC and ADGM — Special Free Zones

The Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) are common law financial free zones that operate under their own employment legislation — entirely separate from UAE federal labour law:

• DIFC operates under the DIFC Employment Law 2019 (as amended). It applies to all employees working within the DIFC.
• ADGM operates under the ADGM Employment Regulations 2019.

Both frameworks broadly align with international employment standards but differ from UAE federal law on matters including end-of-service gratuity, dispute resolution, and contract requirements. If your company or employees operate within DIFC or ADGM, specialist legal advice is required — the information on this page may not apply.

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