Easily Hire, Manage, and Pay Your Employees in UAE
RecruitGo’s Employer of Record (EOR) service in UAE enables employers to hire top Emirati talent quickly and compliantly – without the cost and delay of setting up a local company. You focus on growth; we handle the legal, HR, and payroll heavy lifting.
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Key Considerations for Hiring Employees in UAE
Navigate the tabs below for insights to hiring remote talent in the Emirates. From minimum wage to tax implications, leave policies, and termination laws, we’ve got you covered.
Minimum Wage Requirements
The UAE does not have a federally mandated or fixed minimum wage. Instead, wages are primarily determined through negotiations between employers and employees and are formalized in employment contracts. However, the UAE labor law and the Ministry of Human Resources and Emiratisation (MoHRE) require that salaries must cover the basic needs of employees, ensuring fair compensation.
As such, the MoHRE has issued a non-binding minimum salary guidelines based on job categories and qualifications to serve as a benchmark for fair pay:
- University graduates: AED 12,000 (~USD 3,267) per month
- Skilled technicians: AED 7,000 (~USD 1,905) per month
- Skilled laborers (with secondary school certificate): AED 5,000 (~USD 1,361) per month.
Personal Income Tax Structure
The UAE does not impose any personal income tax on employees. This means individuals working and earning salaries in the UAE pay no tax on their personal income, and there are no personal income tax registration or reporting obligations for employees.
In June 2023, the UAE introduced a federal corporate tax at a flat rate of 9% on taxable business income exceeding AED 375,000 (~USD 102,000). Multinational enterprises with large global revenues are subject to a 15% minimum tax under the Domestic Minimum Top-up Tax effective 2025. However, these taxes apply to businesses and self-employed individuals, not to employees’ salaries.
Social Contributions for Employees in the UAE
In the UAE, Social contributions are mandatory only for UAE nationals and other Gulf Cooperation Council (GCC) nationals aged 18 to 60 years old, and are medically fit to qualify for social security. Expatriates who are not GCC nationals are exempt from social security contributions.
In October 2023, the UAE introduced a 26% unified contribution rate for Emirati employees joining the General Pension and Social Security Authority (GPSSA) system. Here is a breakdown of contributions:
| Employee Contribution (%) | Employer Contribution (%) |
| 11% | 15% |
Employers must register Emirati employees with GPSSA within one month of employment and report terminations within 15 days. Contributions must be paid monthly by the 1st of the following month, with a grace period until the 15th; late payments incur a daily penalty of 0.1%.
Overtime Compensation & Maximum Hours
Under the Emirates Labor Law, the standard maximum working hours are 8 hours per day or 48 hours per week or a total of 144 hours in any 3-week period. Certain sectors such as hotels, retail, and security may have extended working hours up to 9 hours per day. During the holy month of Ramadan, working hours are reduced by 2 hours daily, limiting the workday to 6 hours to accommodate fasting employees.
Any work done outside the average working hours per day is considered overtime. Overtime pay is calculated based on the basic salary only, excluding bonuses or allowances. Here is a quick guide on overtime compensation in the Emirates:
| Overtime | Wage multiplier |
| Overtime on a regular work day | 1.25x |
| Working on public holidays or off days | 1.5x |
| Overtime between 10:00PM to 4:00AM | 1.5x |
Night Shift Differential
The Emirati Labor Code doesn’t explicitly define what is considered a night shift but it’s commonly understood to be from 9:00AM and 10:00PM to 4:00AM. However, if overtime is performed during those hours, a premium of 1.5x the normal wage is awarded to employees. For example, if an employee’s wage is AED 12 per hour, overtime worked between 9:00PM and 10:00 PM to 4:00 AM should be compensated at AED 18 per hour.
Female employees are generally prohibited from working night shifts in hazardous or physically demanding industries; exceptions exist for other sectors like healthcare with regulated hours.
Maternity Leave
Under the Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the private sector, Female employees are entitled to 60 calendar days of maternity leave in total. This leave is divided into 45 days of fully paid leave (full salary), and 15 days of half-paid leave (half salary).
If the mother suffers from illness related to pregnancy or childbirth and cannot resume work, she may take an additional 45 days of unpaid leave, provided a medical certificate is submitted. If the newborn is sick or has a disability requiring constant care, the mother may take an additional 30 days fully paid leave, which can be extended by another 30 days unpaid leave with medical proof.
After returning to work, the mother is entitled to one or two paid nursing breaks per day, totaling up to one hour daily, for up to six months following delivery. In the federal government sector, this nursing break entitlement extends to two hours daily for up to one year after childbirth.
Paternity Leave
As per Federal Decree Law No. 6 of 2020, male employees are entitled to 5 working days of paid paternity leave. Some companies voluntarily offer longer paternity leave than the statutory five days as part of enhanced employee benefits. To qualify, fathers must provide a birth certificate or official proof of the child’s birth to apply for the leave.
Service Incentive Leave
There is no formal “Service Incentive Leave” in the UAE akin to countries like the Philippines. Employees in the UAE are entitled to 30-day annual leave after one year of service which serves as the main paid leave entitlement. Any unused leave is typically compensated in cash upon contract termination.
Parental Leave for Solo Parents
While the UAE provides a paid parental leave of 5 working days for both parents, there is no special parental leave entitlement or extended leave specifically for solo parents under current UAE labor law. Solo parents receive the same parental leave benefits as other employees.
Sick Leave
Under Federal Decree Law No. 33 of 2021, employees in the UAE are entitled to up to 90 calendar days of sick leave per year, which may be taken continuously or intermittently. The 90-period are compensated as follows:
- First 15 days: full pay (100% of salary)
- Next 30 days: half pay (50% of salary)
- Remaining 45 days: unpaid leave
A valid medical certificate from an authorized health entity is required to qualify for paid sick leave. Only employees who have passed probation are entitled to sick leave benefits.
Employers cannot terminate an employee while on sick leave. However, if an employee exhausts the full 90 days of sick leave and remains unable to return to work, the employer may terminate the contract, but the employee is still entitled to end-of-service benefits.
Rest Days
Employees in the UAE are entitled to a paid weekly rest day off at least one day according to Federal Decree Law No. 33 of 2021. An employee’s rest day can be any day of the week depending on company policy. If an employee works on their rest day, they are entitled to overtime pay or an alternative rest day.
Employee Termination Procedures
The termination process in UAE is primarily governed by the Federal Decree-Law No. 33 of 2021. Employers must provide a formal termination letter outlining reasons, notice period, and benefits owed. Termination decisions must be justified, documented, and communicated clearly to avoid disputes. Employees in the UAE have the right to challenge unlawful termination through labor courts or the MoHRE.
An employee can be terminated due to the following reasons:
- Expiry of a fixed-term contract without renewal.
- Mutual agreement between employer and employee.
- Termination by either party with proper notice.
- Employer’s death or permanent closure of the business.
- Employee’s death, permanent inability to work, or court judgment restricting freedom for at least 3 months.
- Employer’s bankruptcy or insolvency.
- Serious misconduct by the employee justifying immediate dismissal without notice (e.g., fraud, theft, assault, intoxication at work, breach of safety rules, falsifying documents, repeated failure to perform duties, leaking trade secrets).
Employees in the Emirates who completed at least one year of continuous service are entitled to end-of-service gratuity which can include benefits such as:
- 21 days’ wages for each of the first five years.
- 30 days’ wages for each additional year.
To protect you from unforeseen financial risks related to terminations, RecruitGo implements a Severance Accrual in all employment agreements. Our expert team ensures compliance with legal entitlements and best practices. If an employee resigns or is not eligible for severance, any unused amounts will be refunded to you.
Paid Time Off
Paid time off (PTO) for employees in the UAE primarily consists of several types of statutory leave entitlements such as a 30-day annual leave, paid sick leaves, parental leaves, and public holidays. In addition, employees must have at least one paid rest day per week. Working on rest days requires compensation with an alternative rest day or pay at 150% of the normal wage.
Public Holidays in the UAE
Employees in the Emirates receive paid leave on official public holidays declared by the UAE government. If employees work on public holidays or rest days, they are entitled to either an alternative rest day or pay at 150% of their basic wage (normal wage plus 50% premium).
National Public Holidays in the UAE
- New Year’s Day
- Eid Al Fitr
- Arafat Day
- Eid Al Adha (Feast of Sacrifice)
- Islamic New Year (Hijri New Year)
- Prophet Muhammad’s Birthday (Mawlid)
- Commemoration Day (Martyrs’ Day)
- UAE National Day
Special Non-Working or Observance Days
- Leilat al-Meiraj (The Prophet’s Ascension) – Observed but not always a public holiday.
- Laylatul Qadr (Night of Power) – A significant night during Ramadan, generally not a public holiday.
- Ramadan start and end – Ramadan itself is not a holiday but affects working hours.
- Mother’s Day and Father’s Day – Celebrated culturally but not public holidays.
- Solar New Year’s Eve (December 31) – Not a public holiday but widely observed.
Islamic holidays follow the lunar Hijri calendar and depend on moon sightings, so exact dates may vary each year. The government announces official dates shortly before the holidays. When holidays fall on weekends, the UAE government may declare substitute holidays.
Onboarding
Our streamlined onboarding process is completed within 3 business days.
To ensure a smooth start, employees are required to submit all necessary documents before their designated start date. Mandatory document submission is not allowed after the start date, while optional documents can be submitted later. Our team will handle enrolment with social contributions for local Emirati employees before their start date.
Employment Contract Details
Employment contracts in UAE are available in English and can be bilingual upon request. They are written documents that require signatures from both parties.
Key elements included in our contracts are:
- Full Name of the employee
- Start date of employment
- Duration of the employment
- Detailed job description
- Termination conditions and provisions
As the Employer of Record (EOR) partner for your employees in UAE, we will handle the legal contracts and other relevant aspects.
Probation Period
In accordance with UAE Labor Laws the probation period for employees should not exceed 6 months from the start of employment; any extension beyond this is illegal. Either party can terminate the employment during probation. The employer must provide at least 14 days’ written notice before terminating the employee during probation and the employee can also hand in their resignation with a 14 day notice. An employee cannot be placed on probation more than once by the same employer.
Why Use an Employer of Record in UAE?
Growing your team in UAE without an EOR means tackling bureaucracy head-on. Here are the primary challenges businesses face – and how RecruitGo’s EOR service solves them:
Stay Compliant with Local Laws
The Emerati labor laws are complex and ever-changing, covering everything from employee contracts to social insurance. It’s easy to slip up if you’re unfamiliar.
An EOR acts as your safety net – ensuring every hire and payroll meets the UAE’s legal requirements. This spares you from costly fines and legal issues while keeping your business fully compliant from day one.
Avoid Payroll & Tax Complexity
When hiring in the Emirates, companies must handle multiple tax withholdings, social security contributions and monthly filings – a time-consuming, intricate process.
RecruitGo’s EOR service streamlines all payroll and tax duties for you. Our local payroll experts ensure accurate calculations and on-time payments, freeing you from administrative burden.
Reduce Costs and Setup Delays
Establishing a foreign legal entity in the Emirates involves significant capital, administrative hassle, and ensuring ongoing legal compliance. By contrast, using an Employer of Record lets you start operations immediately at a fraction of the cost.
Our EOR model saves you the expense of incorporation, ongoing accounting, and HR overhead. You get full-time employees in UAE without the full-time infrastructure costs – a lean approach to expansion that protects your bottom line
International Hiring Made Easy
Recruitgo is Your All-in-One EOR Partner in the Emirates
Not all EOR providers are created equal. What makes RecruitGo stand out is our unique, full-service approach that goes beyond standard Employer of Record offerings in UAE. We combine local human expertise with a powerful tech platform to give you an unparalleled expansion experience. Here’s how we delivers value that others can’t:
In-House Local Experts
We don’t outsource services to third parties – RecruitGo’s own team in the Emirates handles it all.
Our HR and legal specialists on the ground have deep knowledge of UAE’s labor laws, tax codes, and business culture, ensuring your operations remain fully compliant and culturally fluent.
Full-Service from Talent Sourcing to Payroll
Every HR function – recruitment, onboarding, payroll, benefits, compliance, even office space – is handled under one roof.
You won’t need multiple vendors or headaches managing different services; Recruitgo takes care of it all seamlessly.
Fast, Cost-Effective Setup
With RecruitGo, you can start operations in UAE in a matter of days, not months. Our efficient processes and ready infrastructure mean we onboard your employees in as fast as 3 days on average.
Speed doesn’t come at a premium either: our pricing is transparent and competitive
Testimonials
Trusted by Startups and Global Leaders Alike.
Hamzah Jasim Alomairi
Bridges LLC. (United Arab Emirates)
I would recommend RecruitGo on my behalf due to the excellent job you have done in managing Bridges llc account for RecruitGo. You are certainly welcome Emma! Great service overall!
Mia Vujosevic
Native Teams
Our collaboration with RecruitGo has been truly remarkable. Over the course of our engagement, RecruitGo has consistently demonstrated a high level of professionalism, efficiency, and commitment to our shared goals. One notable strength of RecruitGo lies in their responsive and dedicated team. Throughout our partnership, we have received prompt and clear communication, allowing for effective collaboration.
Vipinkumar Ramakrishnan
Skuad
Really a great partner to work with. Sharp on timelines quick responses, I’m very much happy with the Philippines team – America, Jilian, Gabe – for the continuous support.
Francois Myburgh
Centaur
As always, we love working with RecruitGo!
David Catindoy
SLEEQ
RecruitGo team is such a pleasure to work with. They understand what we need as a business and provided us recommendations that are tailored to our needs. I really appreciate the effort that the team has put in to go above and beyond to nurture the relationship and meet certain demands of our business. I highly recommend RecruitGo and it’s really nice to have a partner that you can rely on.
Process of Hiring in the UAE with RecruitGo
As your EOR partner in the Emirates, RecruitGo simplifies hiring and managing your team. Our process is simple:
01
Consultation
First, we discuss your needs. Do you already have a candidate to hire, or do you want us to find one? What roles and skills are you looking for? We’ll advise on salaries, job market insights, and outline a hiring plan tailored to you.
02
Onboarding
Once you’ve chosen a candidate, we move fast to hire them under RecruitGo’s local entity. Every legal detail – registration, tax enrollment, social insurance – is taken care of. You can rest easy knowing all paperwork is 100% compliant with local labor regulations.
03
HR and Payroll
As your EOR partner, RecruitGo becomes the legal employer for your employees. As such, we will handle HR matters, employee benefits, and payroll administration. We also remain the point of contact for any HR issues for you and your employee so you can be the leader without the back-office hassle.
04
Ongoing Compliance & Support
Our experts continuously monitors labor law updates, tax changes, or new regulations that could affect your staff and ensure immediate compliance adjustments. Additionally, if you plan to grow further, we can scale our services with you.
Throughout this process, you maintain full control over the employee’s work and schedule – they report to you just like any team member. We simply takes care of all the administrative and legal employment responsibilities in the Emirates, acting as the local employer.
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Employer of Record UAE FAQs
An Employer of Record (EOR) in UAE helps international companies legally hire Emirati employees without establishing a local business entity. We act as the legal employer, handling payroll, compliance, taxes, and HR administration, so you can easily and compliantly build your workforce in the UAE.
When you partner with RecruitGo, we become the official employer of your Emirati staff through our established local entity. You maintain control over your employees’ day-to-day tasks and responsibilities, while we manage payroll, employee benefits, taxes, and compliance with Emirati employment regulations.
Our Employer of Record services in the UAE cover employee onboarding, payroll processing, tax compliance, management of mandatory contributions, HR administration, and compliance with local labor laws. We also provide optional services like talent recruitment and remote workspace setup.
Typically, we onboard new hires within three business days. This efficient process includes employment contract preparation, payroll and benefits setup, employee registration with social contributions and compliance checks, ensuring your employees can start working promptly and legally.
No, that’s precisely the advantage of our Employer of Record solution. RecruitGo eliminates the need for your own local entity in the Emirates, managing all employment-related responsibilities and allowing you to quickly and efficiently expand your business presence without additional complexity.
Yes, RecruitGo offers comprehensive recruitment support in the Emirates. Our local recruitment specialists understand the market deeply and can efficiently help you find, screen, and hire qualified Emirati talent suited to your business needs.
Our Employer of Record services are particularly beneficial for startups and small to medium-sized enterprises hiring their first international employees, as well as multinational corporations seeking to quickly scale their workforce in the Emirates without the overhead of establishing a separate legal entity.
Starting with our EOR in UAE is simple—reach out to our team to discuss your hiring needs. We’ll manage all employment-related processes from onboarding to payroll and compliance, allowing you to confidently grow your team in the UAE right away.
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