UAE Employment Law & Compliance Guide for Employers
Key employment laws in the UAE: what employers need to know
Private-sector employment on the UAE mainland is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, enforced by the Ministry of Human Resources and Emiratisation (MOHRE); free zones such as DIFC and ADGM have their own employment laws. Foreign employers are often surprised that there is no income tax but there is an end-of-service gratuity, salaries must run through the Wage Protection System, and larger firms face Emiratisation quotas. This page summarises the core employer rules with official sources.
UAE employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | No general statutory minimum wage. Emirati citizens in the private sector must earn at least AED 6,000 a month from 1 January 2026 (existing staff by 30 June 2026), or they do not count toward Emiratisation targets. | MOHRE – minimum wage for Emiratis (Dec 2025) |
| Standard working hours | 8 hours a day or 48 hours a week (Art. 17), with at least one hour of breaks after five consecutive hours. Hours are reduced in Ramadan. Outdoor work in direct sun is banned 12:30–15:00 from 15 June to 15 September. | UAE Government portal – working hours |
| Overtime pay | Maximum 2 overtime hours a day and 144 total hours per 3 weeks. Pay is basic hourly wage plus 25%, or plus 50% between 10 pm and 4 am (not shift workers). Rest-day work earns a substitute day or basic wage plus 50%. | UAE Government portal – working hours |
| Paid annual leave | 30 days of full-pay leave per year of service; 2 days a month for service between 6 and 12 months (Art. 29). Untaken leave is paid out when employment ends. | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Public holidays | 12–13 paid days a year under Cabinet Resolution No. 27 of 2024, the same for public and private sectors: New Year, Eid Al Fitr (3–4 days), Arafah Day, Eid Al Adha (3 days), Hijri New Year, Prophet's Birthday and National Day (2 days). | UAE Government portal – public holidays |
| Sick leave | Up to 90 days a year after probation: first 15 days at full pay, next 30 days at half pay, the rest unpaid (Art. 31). No paid sick leave during probation. | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Maternity and parental leave | 60 days maternity leave: 45 days at full pay, 15 at half pay, plus up to 30 paid days if the child needs constant care (Art. 30). Either parent gets 5 working days paid parental leave within 6 months of birth (Art. 32). | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Probation period | Maximum 6 months, once per employer (Art. 9). Either side ends it with at least 14 days' written notice; an employee moving to another UAE employer must give 1 month's notice. | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Notice period | Set in the contract at 30 to 90 days for either party, at full pay (Art. 43). A party that does not give notice pays the wage for the notice period or its remainder. | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Severance pay | End-of-service gratuity after 1 year's service: 21 days' basic wage per year for the first 5 years and 30 days per later year, capped at 2 years' wage (Art. 51). All final dues are payable within 14 days (Art. 53). | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Employer social contributions | 0% for expatriates. For Emiratis: 12.5% to GPSSA (government adds 2.5%) on contribution salary of AED 1,000–50,000 a month; 15% for Abu Dhabi Emiratis. Other GCC nationals follow home-country rates. Employers also fund health insurance and gratuity. | GPSSA – FAQ (contribution rates) |
| Employee social contributions | Emiratis pay 5% pension contribution. Expatriates pay no social security, but every employee must hold ILOE unemployment insurance: AED 5 a month (basic salary up to AED 16,000) or AED 10 a month above that. | PwC Worldwide Tax Summaries – UAE other taxes |
| Income tax on salaries | No personal income tax on employment income, so there is no payroll tax withholding. The 9% corporate tax applies to business profits, not to salaries. | PwC Worldwide Tax Summaries – UAE personal income |
| Mandatory bonuses and 13th-month pay | None required by law. Bonuses and allowances are contractual. Gratuity, overtime and leave pay are calculated on basic wage, so the split between basic pay and allowances matters. | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
| Work permits for foreign nationals | The employer obtains a MOHRE work permit before work starts (Art. 6), then sponsors an entry permit, medical test, Emirates ID and a 2-year renewable residence visa via ICP or GDRFA Dubai. Free-zone employers apply through their free-zone authority. | UAE Government portal – residence visa for work |
| Employment contract requirements | Written, fixed-term (renewable) contract in two copies, issued through MOHRE with the work permit (Art. 8). Arabic is required and may sit beside another language; the Arabic text prevails in disputes (Art. 66). | Federal Decree-Law No. 33 of 2021 (UAE Legislation) |
Employer obligations in the UAE, topic by topic
Filter by primary service relevance
Does a UAE employment contract have to be in writing, and how long can probation last?
What are the legal working hours and overtime rates in the UAE?
Is there a minimum wage in the UAE, and how must salaries be paid?
How much paid leave must a UAE employer give?
What does an employer pay on top of salary in the UAE?
How can an employer end an employment contract in the UAE, and what is owed?
How does a company hire a foreign national in the UAE?
Can a company use independent contractors instead of employees in the UAE?
Do Emiratisation quotas apply to my UAE company?
Key employment laws in the UAE and official sources
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) — The main mainland labour law: contracts, working hours, leave, wages, termination, gratuity and penalties.
- Federal Decree-Law No. 57 of 2023 on Pensions and Social Security (and Federal Law No. 7 of 1999) — GPSSA pension and social security contributions for UAE nationals in the private sector.
- Federal Decree-Law No. 13 of 2022 on the Unemployment Insurance Scheme — Requires employees to hold Involuntary Loss of Employment (ILOE) insurance and sets premium bands.
- Cabinet Resolution No. 27 of 2024 on Public Holidays — Sets the official public holidays that apply to both public and private sectors.
FAQs: hiring employees in the UAE
Can a foreign company hire employees in the UAE without a local entity?
Not directly. Work permits and residence visas must be sponsored by a UAE-licensed entity on the mainland or in a free zone, and the contract is issued through MOHRE or the free-zone authority. A foreign company without a licence can hire through an Employer of Record, which holds the licence, sponsors the visa and runs WPS payroll, or it can set up its own entity. Paying a UAE resident as a contractor without valid work status risks fines.
How much does an employee cost in the UAE on top of gross salary?
For an expatriate there is no income tax or social security. The main extra costs are end-of-service gratuity (21 days’ basic pay per year for the first five years), health insurance, and work permit, visa and Emirates ID fees, plus any contractual benefits such as flights. For an Emirati, the employer also pays 12.5% of contribution salary to GPSSA, or 15% to the Abu Dhabi Pension Fund.
What is the minimum wage in the UAE in 2026?
The UAE has no general minimum wage for expatriate employees; pay is set by contract. For Emirati citizens in the private sector, MOHRE set a minimum of AED 6,000 a month from 1 January 2026, with existing salaries to be raised by 30 June 2026. From 1 July 2026, Emiratis paid less do not count toward Emiratisation targets and the employer’s new work permits can be suspended.
How much notice and severance does an employer owe when dismissing an employee in the UAE?
Notice is set in the contract at 30 to 90 days, paid at full wage, or paid in lieu. An employee with at least one year’s service also receives end-of-service gratuity: 21 days’ basic wage per year for the first five years and 30 days for each later year, capped at two years’ wage. Untaken leave is paid too, and all dues must be settled within 14 days.
Can a company hire a foreign national in the UAE, and what permit is needed?
Yes. The employer must obtain a MOHRE work permit before the person starts work, then sponsor an entry permit, medical test, Emirates ID and a two-year renewable residence visa through ICP or GDRFA Dubai. Free-zone companies apply through their free-zone authority. Employing someone without a permit carries fines of AED 100,000 to AED 1,000,000 per worker.
Is it risky to engage contractors instead of employees in the UAE?
It can be. A person who works under your direction for pay is an employee under the Labour Law, and anyone working in the UAE needs a work permit or self-employment status such as a freelance permit. Reclassification exposes you to gratuity, leave and notice claims, and to fines for employing someone without a permit. Use licensed contractors for defined projects and an entity or Employer of Record for staff roles.
Related NNRoad resources for the UAE: Employer of Record in the UAE · Payroll in the UAE · Hiring foreign employees in the UAE · Contractors and on-demand talent in the UAE · UAE employer cost calculator
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Regulation Updates in UAE
Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System
What it is: Ministerial Resolution No. 340 of 2026 establishes that private-sector employers must process and credit employee salaries through the Wage Protection System by the first day of each Gregorian month.
What it changes: This creates a direct payroll obligation for employers to use the Wage Protection System for salary processing and payment timing, with enforcement measures tied to non-compliance.
Who is affected:
- Employers in the private sector
What employers should do:
- Ensure salaries are processed and credited through the Wage Protection System by the first day of each month.
Notes: Effective month: 2026-06.
Ministerial Resolution No. (0340) of 2026 Concerning the Wage Protection System
What it is: A 2026 update requiring private-sector employers to pay salaries through the Wage Protection System by the first day of each month.
What it changes: The policy mandates salary payments via the Wage Protection System on or before the first day of every month, with stepped enforcement measures including suspension of new work permits for non-compliant employers.
Who is affected:
- Private-sector employers
What employers should do:
- Ensure salary payments are processed through the Wage Protection System by the first day of each month.
Notes: Effective month: 2026-06.
Oct 2025: UAE Golden Visa Support: New Consular Services for Long-Term Residents
UAE Golden Visa Support: New Consular Services for Long-Term Residents
Update first published on NNRoad in Oct 2025. The current rules are summarised in the sections above.
Oct 2025: Wage Transfer Service for Support Workers (Domestic Labor) – Fourth Phase Implementation
Wage Transfer Service for Support Workers (Domestic Labor) – Fourth Phase Implementation
Update first published on NNRoad in Oct 2025. The current rules are summarised in the sections above.
Sep 2025: Occupational Heat Stress Prevention Policy for 2025 – Worker Safety Regulations
Occupational Heat Stress Prevention Policy for 2025 – Worker Safety Regulations
Update first published on NNRoad in Sep 2025. The current rules are summarised in the sections above.
Discover the latest employment and compliance updates in UAE — helping you stay ahead in a changing regulatory landscape.