UNITED ARAB EMIRATES

Hire and pay employees in the UAE

WPS-compliant payroll, automated gratuity calculations, and visa management across all seven Emirates. Zero income tax, zero complexity.

AT A GLANCE

UAE employment facts

AED
Currency
0%
Income Tax
30 days
Annual Leave
30 days
Notice Period
6 months
Probation
Monthly
Payroll Cycle

WAGE PROTECTION SYSTEM

Automated WPS file generation and submission

The UAE Wage Protection System mandates that all employers pay salaries through approved banks and exchange houses with electronic records filed to MOHRE. Remote& automatically generates WPS-compliant Salary Information Files (SIF) in the required format, routes payments through approved channels, and maintains a complete audit trail for every transaction.

  • SIF file generation in MOHRE-approved format
  • Automated salary disbursement through approved agents
  • Real-time payment status tracking per employee
  • Deadline alerts to prevent WPS violations

END-OF-SERVICE GRATUITY

Accurate gratuity calculations, always up to date

UAE labour law entitles employees who complete at least one year of service to end-of-service gratuity. The calculation depends on the type of contract, reason for termination, and length of service. Remote& tracks each employee's tenure and basic salary in real time, calculates gratuity liabilities automatically, and provides clear reporting so you always know your total obligations.

  • 21 days' basic salary per year for the first 5 years
  • 30 days' basic salary per year after 5 years
  • Pro-rata calculation for partial years
  • Real-time gratuity liability dashboard

VISA & WORK PERMITS

Streamlined work permit and Emirates ID management

Hiring in the UAE requires navigating work permits, residence visas, and Emirates ID registration through MOHRE and ICP (Federal Authority for Identity, Citizenship, Customs and Port Security). Remote& manages the entire process from initial labour approval to medical testing, Emirates ID issuance, and visa stamping. We track renewal dates and alert you before documents expire.

  • End-to-end work permit and visa processing
  • Emirates ID application and renewal tracking
  • Medical fitness test coordination
  • Expiry alerts for visas and labour cards

BENEFITS & COMPLIANCE

Mandatory benefits and MOHRE compliance

UAE employers must provide health insurance, annual leave of 30 calendar days, and comply with MOHRE regulations on working hours, overtime, and termination. Remote& ensures your employment contracts meet all MOHRE requirements, automatically calculates overtime pay, and manages leave balances including annual, sick, maternity, and public holidays specific to the UAE calendar.

  • Compliant employment contracts for mainland and free zones
  • Health insurance tracking and compliance
  • Overtime and working hours calculations
  • UAE public holiday calendar built in

FAQ

Frequently asked questions about hiring in the UAE

The UAE does not levy personal income tax on employee salaries. Employees receive their full gross salary without any income tax deductions. However, a 9% corporate tax was introduced in June 2023 for businesses with taxable income exceeding AED 375,000. There are no social security contributions required for expatriate employees, though UAE and GCC nationals are subject to pension scheme contributions.

Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees who complete one or more years of continuous service are entitled to gratuity based on their basic salary. The formula is 21 days' basic salary for each year of the first five years of service, and 30 days' basic salary for each additional year. The total gratuity cannot exceed two years' salary. Gratuity is calculated on basic salary only, excluding allowances, commissions, and bonuses.

Employers must pay salaries within the timeframe specified in the employment contract, but no later than the agreed-upon date. MOHRE monitors salary payments through the WPS and flags delays. If salaries are delayed by more than 15 days past the due date, MOHRE may issue warnings, and delays beyond 30 days can result in fines, suspension of work permits, and referral to court.

Mainland companies are regulated by MOHRE and follow federal UAE Labour Law. Free zone companies are governed by the specific free zone authority (e.g., DMCC, DIFC, JAFZA) and may have their own employment regulations, though most align closely with federal law. Key differences can include contract templates, dispute resolution processes, and visa quotas. DIFC and ADGM have their own separate employment laws based on common law principles. Remote& supports both mainland and free zone employment across all emirates.

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