United Arab Emirates: Payroll & Employment Facts
Verified statutory employment facts for United Arab Emirates, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the United Arab Emirates employer-of-record guide and the United Arab Emirates country hub.
What is the minimum wage in United Arab Emirates?
| National minimum wage |
No statutory national minimum wage
|
|---|
What employer social contributions apply in United Arab Emirates?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
12.50%
|
|---|---|
| Pension |
15.00%
|
| Healthcare |
0.00%
|
| Annual contribution ceiling |
840,000 AED
|
| Total employer burden |
12.50%
|
What notice and leave rules apply in United Arab Emirates?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0+ months | 4 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
22 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
14 days
|
Is 13th-month pay required in United Arab Emirates?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
No
|
How is severance calculated in United Arab Emirates?
| Formula |
End-of-service gratuity (Federal Decree-Law 33/2021 Art.51): 21 days' basic salary per year for the first 5 years, then 30 days' basic salary per year thereafter; total capped at 2 years' wages; minimum 1 year service. Calculated on basic salary only (allowances excluded).
|
|---|---|
| Per-year multiplier |
3 weeks of basic pay
|
| Minimum qualifying tenure |
12 months
|
| Calculation base |
Basic salary only
|
Worked example
An employee with 5 years of continuous service and an annual salary of £30,000. 1. Convert salary to local currency (AED). Assuming an exchange rate of £1 = 4.7 AED, the annual total salary is 141,000 AED. 2. Determine the 'basic wage' for calculation. Assuming a common structure where basic wage is 60% of the total salary, the monthly basic wage is (141,000 AED / 12) * 0.60 = 7,050 AED. 3. Calculate the gratuity entitlement in days. For the first 5 years, the rate is 21 days per year. Total days = 5 years * 21 days/year = 105 days. 4. Calculate the final amount. The daily basic wage is 7,050 AED / 30 days = 235 AED. The total gratuity is 105 days * 235 AED/day = 24,675 AED (approx. £5,250). 5. This amount is below the overall cap of two years' total wage (2 * 141,000 = 282,000 AED).