Employer of Record United Arab Emirates
Payroll & Tax in the United Arab Emirates
A beginners guide to understanding payroll and tax in the United Arab Emirates
Employer of Record United Arab Emirates
Download our full United Arab Emirates Employment Guide
Find out all about employing in the United Arab Emirates
How we can help
Our fully-compliant payroll service in the United Arab Emirates ensures your employees are paid on time, every time
Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations. The United Arab Emirates is no exception.
Payroll is key for any business; paying the correct salary to your business’s employees is vital. Using Agility EOR means that your employees in the United Arab Emirates are paid on time, every time.
Agility EOR offers the following payroll services in the United Arab Emirates:
- Salaries paid per month, in local currency
- Electronic payslips
- Statutory filing completed by us
- End of year reporting
what to expect
How does Payroll in the United Arab Emirates work?
Pay your staff once a month
In the United Arab Emirates, employees are typically paid on the last business day of the month. A 13th-month wage payment is not required.
Discretionary bonuses
Bonuses are generally defined as discretionary, and therefore not required to be placed in the contract of employment.
National minimum wage
The United Arab Emirates Labour Law does not specify a minimum wage, although it does state in general terms that pay must be sufficient to meet employees' essential needs.
Our approach
It is common in the United Arab Emirates to pay employees once per month, and Agility EOR make the payment on the last working day of every month. You can also agree whether overtime should be paid (this is not a requirement so long as they receive the national minimum wage rate) or given as time off in lieu.
Tax in the United Arab Emirates
UAE Employers Cost
Employer taxes vary depending on the nationality of the employee. If the employee is a UAE national, the employer will pay a 12.5% social security contribution, (15% in Abu Dhabi). Employees who are foreign nationals generally do not incur a social security contribution from their employer. However, nationals of GCC countries may incur social security contributions, depending on the regulations in their home countries.
Foreign nationals working in Dubai and Abu Dhabi must be provided with health insurance by their employers. Their spouses and dependents must also be provided with health insurance.
Workers in the private sector are paid gratuities on the termination of their employment. This amounts to 21 days of pay for every year worked for the first 5 years, and 30 days for every subsequent year.
UAE Employees Cost
Foreign nationals are exempt from paying income tax in the UAE.
UAE nationals pay a 5% social security tax on their yearly salary.
Wondering if expanding
in the United Arab Emirates is right for you?
Read on or speak to a member of our team now
learn more
We are United Arab Emirates Employer of Record experts
We have extensive experience helping businesses expand their workforce in the United Arab Emirates. Take a look at our areas of expertise to find out more:
Learn more about how you can attract and retain staff in United Arab Emirates with both statutory and enhanced employee benefits
Enhance your understanding of what your employee is entitled to when it comes to Statutory Leave in the United Arab Emirates
Unsure about what’s required when employing staff in the United Arab Emirates? Find out about United Arab Emirates Work Permits & Visas
Wondering what it’s like to work in the United Arab Emirates? We’ve got you covered in our extensive guide
We deliver a fully managed EOR Service in the United Arab Emirates, including Payroll, HR and Legal compliance support
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
Learn more
Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an EOR company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!