To onboard employees from the United Arab Emirates, the employer should be knowledgeable with the Employment terms, Labor laws, deductions, and benefits. This section has all the necessary information that employers can use.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
According to the UAE labor laws, the employment contract is necessary for the employment process. The employment contract mentions all the employment details, including overtime pay, paid leaves, social security, and allowances. The employer can provide the employee contract either in English or Arabic.
Probation Period
The probationary period for employees ranges from 3 – 6 months.
13th Month Pay
There is no specific law that ensures the 13th-month pay in the UAE. However, depending on the employer, they can give out the 13th month pay but the 14th month is also customary and is paid at the end of the year.
Employee Benefits
Employers in United Arab Emirates may provide the following benefits to their employees:
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DEWS.
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Social Security.
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Maternal Leaves.
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Voluntary benefits.
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Hajj and Umrah Leaves
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Health Insurances
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Allowances
The employees in UAE are paid once a month.
According to the UAE labor rule, the minimum wage ranges from AED 400 to AED 500 depending on.
If an employee is required to work beyond the normal working hours, the person will be entitled to that days’ wage plus 25% of the basic salary for the hours worked. If the overtime is between 10 PM and 4 AM, it will be 50% of the basic salary.
Employer Payroll Cost:
| Type |
Contribution |
| Social Security |
12.5% |
| DEWS |
5.83% or 8.33% |
Employee Payroll Cost:
| Type |
Contribution |
| Social Security |
5% |
Employee Income Tax
An individual is not subjected to any income tax in the United Arab Emirates.
VAT
The standard rate of VAT in the UAE is 5%.
Based on written notice of “Legitimate reason”, either the employee or the employer can terminate the employment contract. However, an employer cannot terminate an employee on sick leave.
Depending on the employment contract, the employee has to serve 30 days to 90 days notice period to the employer. The notice period for probationary employees before termination ranges from 7- 14 days.
The employees who belong to GCC and the UAE will only need a work permit. However, other employees will need a residence visa and work permit sponsored by an established UAE entity employer. Other employees can work under the sponsorship of a spouse work permit in the UAE.