Hiring Employees in the UAE

Legal Requirements for Hiring

• Written Employment Contract: Must be in Arabic (plus another language if needed) and registered with MOHRE; must include job details, salary, hours, benefits, leave, probation (max 6 months), and termination terms.
• Work Permits / Visas:
  • Employers must obtain a valid work permit via MOHRE—12 different types exist (full-time, part-time, temporary, juvenile, domestic helper, golden visa, etc.).
  • Application steps: trade license, establishment card, MOHRE quota, employee documents, medical examination, Emirates ID, work permit and residency visa.
  • Digital/AI-driven permit issuance is now enabled via MOHRE’s upgraded platform.

Working Hours

• Working Hours: Up to 8 hours/day or 48 hours/week; reduced by 2 hours/day during Ramadan; 1 hour break after 5 consecutive hours; at least one weekly rest day.

Salary

• Salary refers to remuneration, including allowances, paid for work done under a contract of service.
• UAE does not have a minimum wage. Employee salary is subject to negotiation and agreement between employer and employee.
• The maximum normal working hours for workers shall be (8) eight hours per day or (48) forty-eight hours per week
• Must be paid at least once a month and by 1st calendar days after the end of the salary period.
• Salary Must be paid through WPS for Mainland Registered business.
• Employer must issue a Payslip of Salary Payment and Salary Certificate if requested.
• Freezone registered business are not required to process salary through WPS except for JAFZA and DMCC.

Salary Deduction:

• Employer cannot deduct more than 15% of your total salary payable in any one salary period with exceptions to absence from work.
• Penalties in force at the establishment and approved by the Ministry, provided that they shall not exceed (%5) five percent of the wage.
• If Multiple Penalties the total deductions or withholdings from wages must not exceed 50%.

Market Benchmark Salaries by Job Type:

Even without legal minimum wages, market norms have formed clear salary expectations. These benchmarks are often used for visa processing and contract negotiations:

Additional Employer Obligations & Guidance

Salaries must allow employees to cover essential living costs, even in the absence of a fixed minimum.

Employers are advised to use MOHRE wage benchmarks under Federal Decree‑Law 33/2021, Article 27, aligning with industry standards and visa requirements.

Free zone authorities may set their own minimum salary criteria – especially for mainland‑sponsored roles like university graduates in free‑zone visas.

Hiring Foreign Employees

• Employer obligations:
  • Cover recruitment costs, visas, medical expenses, accommodation, uniform, medical insurance, and travel costs.
  • Contracts must match pre-arrival job offer.
  • Cannot retain workers’ passports—illegal confiscation prohibited.
  • Employees can change employer after 6 months if consent or legal grounds (unfair treatment, unpaid salary) apply.
• Midday Outdoor Ban: From June 15 – Sept 15 (12:30–15:00), outdoor work prohibited to protect labourers.

Employee Rights & Benefits:

• Equal Pay: Women must receive equal wages for equal work.
• Health & Safety: Employers must ensure safe working conditions, provide health insurance, protective gear, and prevent occupational hazards.
• No Forced Labor/Discrimination: Law prohibits forced labour, discrimination (gender, race, religion, nationality), harassment, bullying, and exploitation of minors (<15 years) .
• Housing & Meals: For certain worker categories (e.g., domestic, construction), employers must provide suitable accommodation, and three daily meals.
• Unemployment Insurance: Since 2023, eligible employees may receive up to 3 months’ compensation if terminated (subject to minimum 12 months in scheme and Termination should not be due to disciplinary action as per Article 39 of Federal Decree Law).
• End of Service Benefit (EOSB) / Optional Savings: Employers must pay gratuity; an optional savings scheme is available instead.

Unemployment Insurance in the UAE

• As of 1 January 2023, all employees in the federal government and private sector (including most free-zone employees) must enroll in the Involuntary Loss of Employment (ILOE) scheme – also known as Unemployment Insurance.
• Exemptions: Investors (company owners), domestic helpers, temporary/part-time workers, juveniles under 18, and pensioners employed after retirement.

Types of Insurance (ILOE Categories):

• Category A: Basic salary ≤ AED 16,000/month → premium ~ AED 5 + VAT/month.
• Category B: Basic salary > AED 16,000/month → premium ~ AED 10 + VAT/month
  Employees choose their category based on contracted basic salary.

Coverage Details:

• Duration: Up to 3 consecutive months per claim, cumulatively up to 12 monthly payments over whole career
• Benefit Amount: 60% of average basic salary over the previous 6 months.
• Max AED 10,000/month for Category A
• Max AED 20,000/month for Category B

Eligibility Conditions:

• Must have paid premiums for 12 continuous months.
• Must claim within 30 days of job termination.
• Must not have resigned or been dismissed for disciplinary reasons.
• Must remain in the UAE during claim; benefit stops if re-employed or exit country.

Overtime

• The employer may instruct the worker to work overtime over the normal working hours, provided that they do not exceed two hours per day and Must not exceed 144 hours every 3 weeks
• Overtime pay: At least 25% Extra on basic wage for regular overtime
• Night Overtime (10 PM – 4 AM): At least 50% extra on basic wage (shift workers excluded).
• Weekend Work: Compensated with a day off or paid with at least 50% extra on basic wage.
• Weekend Limit: No more than two consecutive weekends of work (except day workers)

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of the UAE employment laws and regulations, please visit the official governmental websites.

Updated on: August 2026