Hire in Dubai
Dubai PEO &
Employer of Record
Hire & manage teams remotely in Dubai without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Business Language
Arabic, English
Salary Currency
UAE Dirham (AED)
Payroll tax
12.50%
Payroll Cycle
Monthly
Time zone
GMT+4
Capital city
Abu Dhabi
Hire Employees in Dubai
The NNRoad Advantage ☺
Pay as you go
Global account manager
Compliance
Fast Onboarding
Foreigner Visas
Platform
Employer of Record in Dubai
01.
Candidate Selection
02.
Employee Onboarding
03.
Compliance & Payroll
04.
Payroll Reporting
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Dubai
01.
Compliance & Payroll
02.
Payroll Reporting
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Dubai
Employee Income Taxes:
Income taxes are not imposed on individuals in the United Arab Emirates (UAE). The country operates on a tax-free system, meaning that there are no personal income taxes for residents or non-residents. However, there are taxes on certain forms of corporate income, such as oil production and foreign branches of companies. Additionally, certain goods and services are subject to value-added taxes (VAT) at a rate of 5%. Overall, the lack of personal income taxes is one of the factors that has made the UAE a popular destination for foreign investment and business.
Tax Brackets
Sample Calculation
Employer Costs in Dubai
After one month of employment, the employer is required to register a UAE citizen/GCC national with the General Pension and Social Security Authority (GPSSA). In the United Arab Emirates (UAE), employers are required to cover various costs related to their employees, including health insurance and visa costs.
Additionally, many employers offer benefits such as housing allowances, transportation allowances, and end-of-service benefits. The amount and type of benefits offered can vary widely based on the industry, size of the company, and individual negotiation between the employer and employee. In some cases, employers may also be required to contribute to a government-administered pension scheme. It’s worth noting that the UAE has one of the highest ratios of foreign workers to locals in the world, and as a result, the cost of employing expatriate workers can be significantly higher for employers.
Employer Contribution
12.50% – Social Security (basic social security plus housing allowance, based on monthly minimum of 1,000 AED and maximum of 50,000 AED)
Total employment cost: 12.50%
Employee Contribution
5% – Social Security (contributions are for Emiratis only, no contributions for expats)
Total employee cost: 5%
Benefits & Insurance in Dubai
In the United Arab Emirates (UAE), employees can expect to receive a range of benefits and insurance coverage as part of their employment package. Health insurance is mandatory for all employees, with the cost typically covered by the employer. Other common benefits include end-of-service benefits, housing allowances, transportation allowances, and bonuses. Some employers also offer additional benefits such as educational allowances for children, gym memberships, and life insurance. It is important to note that the exact benefits offered can vary widely based on the industry, size of the company, and individual negotiation between the employer and employee.
The UAE has a social security system in place, which provides benefits for sickness, maternity, and disability, as well as retirement pensions. Overall, the benefits and insurance offered in the UAE are competitive compared to other countries in the region, making it an attractive destination for both local and foreign workers.
Social Security
UAE nationals working in government and private sectors are eligible for pensions and other retirement benefits after reaching the retirement age of 49 or after serving for 20 years minimum. GCC nationals employed in the UAE are entitled to a pension in accordance with the schemes established in their home countries. Expatriate workers are not entitled to a pension but are entitled to end-of-service benefits also known as gratuity or severance pay.
Working Hours in Dubai
The standard working hours in the United Arab Emirates (UAE) are Sunday through Thursday, from 9:00 a.m. to 6:00 p.m., with a one-hour break for lunch. However, the exact working hours can vary depending on the industry and type of job. In certain sectors, such as retail and hospitality, longer hours may be required, including evenings and weekends. It is also common for some industries, such as construction, to have extended working hours during peak periods.
According to the UAE Labor Law, employees are entitled to a minimum of 30 days of paid annual leave and a maximum of 48 working hours per week, with an additional rest day. The UAE also has strict laws in place to protect the rights of workers, including those related to overtime, working hours, and leave.
Working Hours Per Week
According to the labour law in the UAE, Private sector employees are required to work 8 hours per day or 48 hours per week. Public sector employees are required to work 7 hours per day. During the holy month of Ramadan, working hours are reduced by 2.
Overtime
The employer may hire the worker for additional working hours as long as they do not exceed two hours per day, and the worker may not work more than those hours unless the Executive Regulations of this Decree-Law specify the processes and conditions. In any case, the total number of hours worked in three weeks cannot exceed 144.
Termination Laws in Dubai
A limited contract can be unilaterally terminated by either party as long as the legal penalties of early termination are met. An employment relationship is terminated in the case of unlimited contracts if both the employer and the employee mutually agree to terminate the contract, or if either party decides to terminate the contract provided that the terminating party follows the legal notice requirements and continues to honor his obligations. An employer or an employee can cancel an employment contract without notice in certain circumstances. When an employer fires an employee or compels him to resign for no cause, this is known as arbitrary dismissal.
Severance
The amount of severance pay is determined by the length of service of the employee. If the cause for termination is not recognized as legal, the employee may be entitled to up to three months’ pay in additional compensation.
Notice Period
No notice is required for termination during a probationary period. For dismissals (other than for cause) employers must provide a minimum of 30 days prior written notice.
Notice periods in the DIFC are determined by the employee’s length of service, specifically:
- 1 week’s notice after 1-5 months of employment
- Up to 5 years of employment with a 30-day notice period
- After 5 years of service, you will be given 90 days’ notice
Employment Contract in Dubai
Employment Contract
The start and end dates of the job period are usually specified in limited-term contracts. When a contract expires, it is immediately canceled unless it is renewed.
When a business has to hire personnel for a specific project or for a set period of time, these contracts are used.
An unlimited term contract is a type of contract that is open-ended, more flexible, and widely used in the UAE. It can be ended by mutual consent or by delivering a 1 to 3 month notice period. During the notice period, all parties must fulfill their duties.
Probation Period
An employer has the right to hire a worker on a probationary basis for a period of not more than six months from the date of appointment, and the employer may terminate the worker’s service during the probationary period by giving him a 14-day written notice prior to the date set for his termination.
Types of Leaves in Dubai
In the United Arab Emirates, employees are entitled to a certain number of paid leave days as part of their employment benefits. The number of leave days varies depending on the company and the employee’s length of service. Typically, full-time employees are entitled to a minimum of 30 calendar days of paid annual leave, although some companies may offer more.
In addition to annual leave, employees may also be entitled to sick leave, maternity leave, and other types of leave as outlined in the country’s labor laws. Leave entitlements may be taken either as a continuous period or as separate days, and must be approved by the employer. It’s important for employees to understand their rights and benefits when it comes to paid leave, as well as the process for taking time off and the conditions under which leave may be granted.
Annual Leave
Employees are entitled to the following amount of annual leave:
- If they’ve served for six months but not a year, they’ll get two days per month;
- if they’ve served for a year, they’ll get 30 days.
Unused vacation time must be carried over or paid out.
Sick Leave
Employees who have worked for three months are eligible for paid sick leave up to 90 days per year and must present a medical certificate within 48 hours of the first day of illness.
The employee is entitled to 100% of his or her usual salary rate of compensation for the first 15 days of sickness. For the next 30 days, this drops to 50%, and any further sickness within a year is unpaid.
Maternity Leave
Employees with one year of service are entitled to 45 days of paid maternity leave at 100% of their regular salary rate of pay; employees with less than one year of service are entitled to 50% of their regular salary rate of pay. Before and after the due date, the employee can take maternity leave.
Parental Leave
In the United Arab Emirates, there is no supplementary parental leave. Both parents are entitled to 5 days of paid leave for private-sector employees. Employees are permitted to take time off until the child reaches the age of six months.
Public Holidays in Dubai
The United Arab Emirates (UAE) has a number of public holidays throughout the year, which are determined by the national calendar and by Islamic events. Some of the most notable public holidays include National Day, which celebrates the formation of the UAE as a federation in 1971, and Eid al-Fitr and Eid al-Adha, which mark the end of Ramadan and the pilgrimage to Mecca, respectively. Other public holidays include Islamic New Year, Prophet Muhammad’s Birthday, and the Islamic holiday of Ashura.
On public holidays, government offices and many businesses are closed, and there may be restrictions on the sale of alcohol. Additionally, the exact dates of Islamic holidays can vary based on the sighting of the moon, so it is important to check the official calendar in advance. Overall, public holidays are an important part of the cultural and religious calendar in the UAE, and are widely celebrated by residents and visitors alike.
Public Holidays
- New Year’s Day – January 1-2
- Eid al-Fitr Holiday – May 1-5
- Afrah Day – July 9th
- Eid Al Adha – July 10-12
- Hijri New Year’s Day – July 30th
- Prophet Muhammad’s Birthday – October 8th
- Commemoration Day – December 1st
- National Day – December 2-3