Easily Hire, Manage, and Pay Your Employees in the UAE
RecruitGo's Employer of Record service in the UAE enables employers to hire top talent quickly and compliantly — without the cost and delay of setting up a local entity. You focus on growth; we handle WPS, gratuity, and UAE Labour Law compliance.
Why Foreign Companies Hire in the UAE
The UAE is the Middle East's leading business hub. Zero personal income tax, strategic location bridging Europe, Asia, and Africa, world-class infrastructure, political stability, and a highly cosmopolitan workforce. Over 85% of the UAE's population are expatriates.
Multiple setup options (mainland, free zones, offshore), generous visa programs including the 10-year Golden Visa, no foreign exchange controls, 100% foreign ownership in most sectors since 2021. Major hubs: Dubai (commerce, tech), Abu Dhabi (energy, finance), Sharjah (manufacturing, logistics).
How RecruitGo Helps You Hire in the UAE
Whether you need to hire without a local entity, run WPS payroll, manage end-of-service benefits, or sponsor work visas, RecruitGo has a service for each stage.
Employer of Record (EOR)
Hire in the UAE without a trade license. RecruitGo handles contracts, WPS payroll, gratuity, visa sponsorship, and full Labour Law compliance.
Payroll Service
Already have a UAE entity? We process monthly WPS payroll, calculate gratuity provisions, manage leave balances, and ensure MoHRE compliance.
Employee Benefits
Design benefits that attract top talent in the UAE's competitive market. We manage mandatory medical insurance, Savings Scheme, and supplementary coverage.
Visa and Work Permits
All foreign employees need an employment visa and residence permit. We manage the full process including medical testing, Emirates ID, and labor card.
UAE Employment Snapshot
Under Federal Decree-Law No. 33 of 2021.
| Currency | UAE Dirham (AED), pegged to USD at 3.6725 |
| Income tax | Zero. No personal income tax, payroll tax, or social security for expats |
| Minimum wage | No general minimum for expats. AED 6,000/mo for Emiratis (private sector, Jan 2026) |
| Working hours | 8 hrs/day or 48 hrs/week. 6 hrs/day during Ramadan |
| Overtime | 125% normal, 150% (9PM-4AM). Max 2 hrs/day. Exempt for managerial roles |
| Probation | 6 months max. 14 days notice during probation. Non-renewable |
| Contract types | All fixed-term since Feb 2022. Max 3 years, renewable. Unlimited contracts phased out |
| Annual leave | 30 calendar days after 1 year. 2 days/month if 6 months to 1 year |
| Sick leave | 90 days/year. First 15: full pay. Next 30: half pay. Remaining 45: unpaid |
| Maternity leave | 60 days: 45 full pay + 15 half pay. 1 year service for full pay |
| Paternity leave | 5 working days within 6 months of birth |
| Gratuity | 21 days basic/year (first 5 yrs), 30 days/year after. Capped at 2 years total |
| WPS | All salaries via authorized banks. Non-compliance blocks work permits |
| Medical insurance | Mandatory in all emirates. Employer must provide |
| Termination notice | 30 days min (up to 90 per contract). 14 days during probation |
| Public holidays | ~10-14 days/year (Islamic holidays shift annually) |
| Language | Contracts must be in Arabic (or bilingual). Arabic prevails in disputes |
How to Hire in the UAE as a Foreign Company
Multiple options including mainland, free zone, and EOR.
| EOR (RecruitGo) | Mainland LLC | Free Zone | |
|---|---|---|---|
| Time to first hire | 5-10 business days | 4-8 weeks | 2-4 weeks |
| Setup cost | None | AED 30K-100K+ plus visa costs | AED 15K-50K+ |
| Can trade locally? | Via RecruitGo entity | Yes, unrestricted | Within zone or via agent |
| Visa sponsorship | Via RecruitGo | Your entity | Your free zone entity |
| Emiratization | Managed by RecruitGo | Your responsibility (quotas) | Generally exempt |
| Ideal for | 1-15 employees, testing | 10+, local market | Export, holding, specific sectors |
Emiratization requirements: Mainland companies with 50+ employees: 2% annual increase. 20-49 employees in targeted sectors: at least 2 Emiratis. Penalties: AED 9,000/month per missing role (AED 12,000 from Jan 2026). Free zones generally exempt. Through EOR, Emiratization is managed by RecruitGo.
Savings Scheme (gratuity alternative): Since 2024, employers can contribute monthly (5.83% or 8.33% of basic) to an approved investment fund instead of accruing lump-sum gratuity. Employees benefit from investment returns. Attractive for cash flow management.
Key Employment Rules in the UAE
Zero income tax, no social security for expats
No personal income tax, payroll tax, or social security for expatriates. Only mandatory costs: gratuity provisioning and medical insurance. UAE nationals covered by GPSSA (employer 12.5-15%).
End-of-service gratuity
After 1 year: 21 days basic/year (first 5 years), 30 days/year after. Capped at 2 years total basic salary. Calculated on last drawn basic only (excludes allowances). Full gratuity owed regardless of resignation or termination. Settlement within 14 days.
WPS (Wage Protection System)
All salaries must be paid through authorized banks/exchange houses monitored by MoHRE. Failure to pay 70% of staff through WPS blocks new work permits. Fines up to AED 100,000 per violation.
Fixed-term contracts only
Since Feb 2022, all contracts must be fixed-term (max 3 years, renewable). Unlimited contracts phased out by Feb 2023. Non-compete clauses limited to 2 years, specific geography, and work type.
Visa sponsorship
Every foreign employee needs employment visa + residence permit sponsored by employer. Process: offer letter, MoHRE registration, entry permit, medical test, Emirates ID, residence visa. Takes 2-4 weeks. Golden Visa (10-year) available for top talent. Employer bears all costs.
What It Costs to Employ Someone in the UAE
Lowest ongoing statutory employer cost in the world for expatriates. No income tax, no payroll tax, no social security. Primary costs: gratuity (5.83-8.33% of basic) and mandatory medical insurance.
| Component | Monthly (AED) | Rate |
|---|---|---|
| Gross salary | 15,000 | Typically: basic (60%) + housing (40%) |
| Gratuity provision | ~525 | 5.83% of basic (AED 9K, first 5 yrs) |
| Medical insurance | ~300-800 | Mandatory. Varies by emirate/plan |
| Income tax | 0 | Zero personal income tax |
| Social security | 0 | Not applicable for expatriates |
| Total employer cost | ~15,825-16,325 | ~106-109% of gross |
For UAE nationals, add GPSSA (12.5-15% employer). Visa costs (AED 5K-10K) are one-time. Gratuity on basic salary only (typically 60% of package). Most employers also provide housing, transport, and annual bonus. EOR fee not included.
Common Questions
What companies ask most about hiring in the UAE.
Yes, through an EOR. RecruitGo is a locally licensed UAE company handling contracts, WPS payroll, visa sponsorship, gratuity, medical insurance, and MoHRE compliance. Hire in 5-10 days without a trade license.
No. Zero personal income tax, payroll tax, and social security for expatriates. Only mandatory costs: gratuity (5.83-8.33% of basic) and medical insurance. Corporate tax (9% on profits above AED 375K) does not apply to employee compensation.
After 1 year: 21 days basic/year (first 5 years), 30 days/year after. Max 2 years total basic. Calculated on last drawn basic only. Full gratuity owed for both resignation and termination. Settlement within 14 days. Optional Savings Scheme available since 2024.
Wage Protection System — all salaries must be paid through authorized banks monitored by MoHRE. Failure to pay 70% of staff through WPS blocks new work permits. Fines up to AED 100,000 per violation.
Yes. Since Feb 2022, all contracts must be fixed-term (max 3 years, renewable). Unlimited contracts phased out by Feb 2023. Simplified gratuity calculation and more transparent terms.
50+ employees: 2% annual increase. 20-49 in targeted sectors: 2 Emiratis. Penalties: AED 9,000/month per missing role (AED 12,000 from Jan 2026). AED 6,000/mo minimum for Emiratis. Free zones generally exempt.
Every foreign employee needs employment visa + residence permit. Process: offer letter, MoHRE, entry permit, medical, Emirates ID, residence visa. 2-4 weeks. Golden Visa (10-year) for top talent. Employer bears all costs.
5-10 days for contract and payroll. Visa processing adds 2-4 weeks for new visas. Transfers from another employer are faster. Own mainland LLC: 4-8 weeks; free zone: 2-4 weeks.
