Hiring guide · EMEA
How to hire in United Arab Emirates
To hire in the United Arab Emirates you need a licensed entity that can sponsor a residence visa and pay through the Wage Protection System, or an Employer of Record that holds one. There is no income tax; the main employer costs are end-of-service gratuity accrual, medical insurance and visa fees.
- Currency
- AED
- Payroll cycle
- Monthly via WPS
- Employer cost
- Gratuity accrual + insurance
- Notice
- 30–90 days
The talent market in United Arab Emirates
The UAE has become the regional hub for technology, finance and logistics across the Middle East, Africa and South Asia, with an overwhelmingly expatriate workforce and no personal income tax on salary. Dubai carries commercial and startup depth; Abu Dhabi concentrates sovereign, energy and enterprise work.
Employment is entirely visa-led. A worker cannot legally be employed without a residence visa and labour card sponsored by a licensed entity, so hiring speed is governed by immigration processing rather than by contract negotiation.
Salary benchmarks in United Arab Emirates
Indicative annual gross base salary in AED for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | AED 240,000 – 360,000 |
| Senior software engineer | AED 360,000 – 500,000 |
| Account executive (SaaS) | AED 300,000 – 440,000 incl. variable |
| Customer support specialist | AED 100,000 – 160,000 |
Employment rules and payroll in United Arab Emirates
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
48 hours maximum, reduced during Ramadan
Probation
Up to 6 months, with 14 days' notice during it
Notice period
30–90 days as agreed in the contract
Paid leave
30 calendar days after one year of service
Public holidays
Around 13–14 days, several set by lunar calendar
Payroll cycle
Monthly, paid through the Wage Protection System
Employer contributions
No income tax; GPSSA pension applies to GCC nationals only, plus end-of-service gratuity accrual and mandatory medical insurance
Contractor, EOR employee or your own entity?
Three ways to engage someone in United Arab Emirates. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in United Arab Emirates
A freelancer must hold a freelance permit and a valid residence visa to work legally in the UAE. Engaging someone without the correct permit is an immigration and labour violation for both parties, with fines and possible bans, and it cannot be cured retrospectively — it has to be structured correctly before the person starts.
Work permits and right to work
Nearly every non-GCC hire needs an employment residence visa and Emirates ID sponsored by the employing entity, typically taking two to four weeks including medical testing and biometrics. Free-zone and mainland sponsorship differ in quota and cost, and the sponsoring entity must match where the person will actually work.
Hire in United Arab Emirates without an entity
Our Employer of Record page for United Arab Emirates covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in United Arab Emirates- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in United Arab Emirates: frequently asked questions
Can we hire in the UAE without a trade licence?
Yes. A UAE Employer of Record with a mainland or free-zone licence employs the person, sponsors the residence visa and Emirates ID, and pays through the Wage Protection System, which removes the need for your own licence and local sponsorship structure.
What is end-of-service gratuity and how is it calculated?
It is a statutory severance benefit for expatriate employees: 21 days of basic pay per year for the first five years, then 30 days per year afterwards, capped at two years' pay. Accrue it monthly rather than absorbing it as a lump sum at exit.
Is salary in the UAE really tax-free?
There is no personal income tax on employment income in the UAE. Employees remain liable for tax in their home country where residence rules require it, and corporate tax applies to the employing entity's profits, not to salaries.
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Get the United Arab Emirates Hiring Cost Guide
A country brief covering fully loaded employment cost in AED, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for United Arab Emirates.