Hire compliantly in the United Arab Emirates Talk to an Expert

According to the labor code of the United Arab Emirates, employees are entitled to annual leave as follows:

• Annual leave is 2 days a month for employees who have worked for over 6 months but less than 1 year.
• Annual leave is 30 days a year for employees with more than 1 year of experience in the company.

Part-time employees are entitled to annual leave based on their actual working hours and as outlined in the employment contract. During the leave, employees are entitled to their basic pay and housing allowance.

If the employer requests that the employee work during annual leave and the leave is not carried over to the next year, the employee must be paid their regular wages and the basic salary they are entitled to for the leave. The annual leave salary must be issued before the leave is taken. If an employee is dismissed or resigns, they are entitled to pay in place of unused annual leave. Employees can only carry over up to half of their annual leave entitlement or receive payment in lieu of it.

In the UAE, employees are entitled to 90 days of annual sick leave upon completing the probationary period. The employee must notify the employer about their sickness within 3 working days.

Employees cannot be dismissed while on sick leave. If they use all 90 days of sick leave and are unable to report to work afterward, employers are allowed to terminate the employment agreement.

In the United Arab Emirates, the law provides 60 days of paid maternity leave to female employees starting from the delivery date. The leave is paid with full salary for the first 45 days and half pay for the remaining 15 days.

If the female employee gives birth to a sick or disabled child, the employee is entitled to an additional 30 days of maternity leave with full pay, starting at the end of maternity leave, with the option for an additional 30 days without pay.

Private-sector employees are entitled to 5 working days of paid parental leave, which can be taken at any time from the child's birth up to 6 months. This leave is available to both the mother and the father. There is no separate statutory paternity leave entitlement.

Minimum Wage

Emirati citizens working in the private sector are subject to a formal minimum salary requirement, while non-Emirati workers are not covered by a statutory minimum wage. For non-Emiratis, pay levels are determined by individual employment contracts and general labour law requirements, rather than by a fixed legal wage floor. This difference is not considered discriminatory.

Private employers must pay Emirati nationals at least AED 6,000 (UAE dirham) per month beginning January 1, 2026, with existing contracts needing adjustment by June 30, 2026.

Employee salaries can be paid using currencies other than AED. Dubai Court of First Instance ruled in August 2024 that a part of an employee's salary can be paid in cryptocurrency without requiring it to be converted into national currency, as determined by the employment contract. Depending on the agreement between employer and employee, salaries can be paid monthly or more frequently. Salaries must be paid monthly if the contract does not specify the pay period.

Overtime, Holiday & Vacation Pay

The remuneration for overtime work equals 125% of the regular hourly pay. For overtime work between 10:00 PM and 4:00 AM, employees are entitled to 150% of the normal hourly remuneration. The law limits overtime work to two hours daily. Employees in managerial or supervisory roles, as well as ship crews working under special service conditions, are exempt from overtime regulations.

During annual leave, employees are entitled to their basic salary and a housing allowance (if stipulated in the contract).

If the employee is required to work on a rest day or public holiday, they will be granted an additional rest day or a 50% increase in their basic wage for that day. Employers should be mindful of the religious significance of some public holidays when requiring employees to work.

Notice Period

Either the employer or the employee may terminate the employment contract for any legitimate reason by providing at least 30 days' notice, but no more than 90 days' notice, in writing. The employee will continue to work during the notice period and be entitled to their normal wages upon completion of the period.

The employer and employee may agree to waive the notice period, but the employee must maintain all of his rights. If the duration of the notice period is shortened, it must be the same for both parties or more favorable to the employee. The party (employer or employee) that did not abide by the notice period must pay the other party compensation equal to the employee's wage for the full notice period or the remaining time.

If the employer terminates the employment contract, the employee shall have the right to be absent during the notice period for 1 working day without pay per week to search for another job. They must notify the employer at least 3 days before the absence day.

Severance Benefits

The labor code states that employees must be provided with end-of-service remuneration if they have completed 1 year of service with the employer. Foreign employees are also entitled to a severance gratuity.

Under federal law, the severance is paid as follows if the employer terminates the employee's contract:

• 1 to 5 years of service - 21 days' salary for each year of service
• More than 5 years of service - 30 days' salary for each additional year, provided the entire compensation does not exceed 2 years' pay

Employers are obligated to have a bank guarantee of AED 3,000 for each employee or an insurance policy that covers every employee's severance entitlements in the case of bankruptcy.

Employers can register with the Ministry of Human Resources and Emiratisation for a voluntary program that is an alternative to the statutory end-of-service benefits. It is known as the Savings Scheme. In this program, employers contribute 5.83% of an employee's salary monthly for any employee with less than 5 years of service. The contribution rate increases to 8.33% for employees with 5 years or more of service.

Pension

In the United Arab Emirates, 2 federal pension schemes are currently in operation, depending on when an Emirati national first entered the workforce.

For employees registered before October 31, 2023, the standard retirement age is 60 years. An employee becomes entitled to a pension upon reaching age 60 with a minimum of 15 years of contributions.

For employees registered after October 31, 2023, the minimum retirement age is 55 years, with a minimum subscription period of 30 years. Working mothers are entitled to apply for retirement at a younger age and with a shorter minimum subscription period.

The pension for both schemes is calculated monthly at 60% of the pension account salary for a contribution period of 15 years, increased by 2% for each additional year of contribution beyond 15 years, up to a maximum of 100% of the pension account salary. If the service period exceeds 35 years, the employee receives a bonus equal to 3 months' salary for each additional year, calculated on the pension account salary.

For the old scheme, the last pension account salary used in the calculation must not differ by more than 20% from the average pension account salary of the preceding 4 years (or the actual subscription period if shorter). The minimum pension is AED 10,000 per month.

Under the new scheme, the pension account salary is calculated on the average of the last 6 years of the subscription period, or the entire contribution period if shorter.

The maximum pensionable salary is AED 70,000 per month for private-sector employees and AED 100,000 per month for public-sector employees.

Dependents/Survivors Benefits

In the United Arab Emirates, 2 separate federal rules govern survivors' benefits depending on when the deceased insured employee first entered the workforce.

The amount of the survivor's pension is equal to a percentage of the old-age or disability pension that the deceased employee was entitled to, distributed among eligible survivors. The minimum monthly benefit amounts are as follows:

• AED 800 (United Arab Emirates dirhams) for a widow or widower
• AED 600 for each surviving parent
• AED 400 for each remaining beneficiary

For employees who joined before October 31, 2023, the distribution is fractional by category. For employees who joined on or after October 31, 2023, the distribution percentages are established as follows: 40% for the widow or widower, 40% for male and female children collectively, and 20% for the father or mother, or both. If there is more than 1 beneficiary within a category, the share is distributed equally among them.

The Emirates of Sharjah and Abu Dhabi have different beneficiaries and benefit amounts.

Invalidity Benefits

There are 2 federal pension schemes that govern disability benefits, depending on when the insured employee first entered the workforce. For both schemes, where an insured employee suffers total disability as a result of a work-related injury or occupational disease, a pension is granted as if the employee had completed 35 years of service, or on the basis of the actual service period, whichever is longer. Where a work-related injury results in partial disability rather than total disability or death, the insured is entitled to a one-time compensation calculated as the percentage of disability sustained multiplied by AED 75,000. This is a lump sum payment to the insured, not a monthly pension.

The minimum monthly pension disbursed by the GPSSA is AED 10,000 for both schemes.

In the event of a work accident or occupational disease, the employer is liable to pay the employee's medical treatment expenses at government or private hospitals until the employee recovers or a disability is proven. If the injury prevents the employee from working, the employer must pay the employee's full salary for the entire treatment period or 6 months, whichever is shorter.

Personal Income Tax

The United Arab Emirates does not impose personal income tax on individuals.

Visas

• Tourist Visa: can be issued for 30, 60, or 90 days for single or multiple entries.
• Business Visa: allows visitors to enter the country for up to 6 months and is used for business meetings, investment exploration, and commercial activities.
• Job Seeker Visa: issued to individuals who wish to search for employment in the UAE without requiring a host or sponsor. Available for 60, 90, or 120 days.
• Transit Visa: for passengers traveling to another country via the UAE who are not eligible for visa-free entry and who intend to exit the airport.
• Medical Visa: Foreign patients can enter the UAE for treatment under the sponsorship of the medical establishment where they would be seeking treatment.
• Retirement Visa: A renewable 5-year residence visa issued to retired residents.
• Golden Visa: a long-term residency visa valid for 5 or 10 years and renewable, requiring no local sponsor. It is available to investors, entrepreneurs, highly skilled professionals, scientists, doctors, engineers, outstanding students and graduates, humanitarian pioneers, frontline healthcare workers, and others in specialized fields.
• Green Visa: a 5-year self-sponsored residency visa introduced in 2022 and targeted at skilled professionals, freelancers, and investors who do not require employer sponsorship. Freelancers must hold a freelance or self-employment permit from MoHRE and demonstrate minimum annual self-employment income.
• Blue Visa: a 10-year residency visa formally launched in February 2025 and awarded to individuals who have made exceptional contributions to environmental protection and sustainability.
• Specialist Visit Visas: in September 2025, the UAE introduced 4 new visit visa categories for specialized professionals:
  • Artificial Intelligence Specialists Visa (single or multiple entry, based on a letter from a sponsoring or hosting technology-focused entity)
  • Entertainment Professionals Visa (for temporary stays for entertainment purposes)
  • Events Visa (for attendance at festivals, conferences, exhibitions, and cultural or educational events)
  • Cruise and Luxury Yacht Tourists Visa (a multiple-entry permit for tourists arriving by cruise ship or leisure boat).
• Virtual Working Program (Digital Nomad Visa): valid for 1 year. It may be renewed by submitting a fresh application that meets the same eligibility criteria. There is no limit on the number of renewals, provided the income and employment conditions continue to be satisfied.
• Student Visas: student visas are sponsored either by an accredited UAE university or college (for students 18 years or older), or by a UAE-resident parent or guardian (for students under the age of 18).

Work Permits

Work permits in the UAE are issued by the Ministry of Human Resources and Emiratisation (MoHRE). Employers must obtain a valid work permit before hiring any employee and submit an application supported by a signed employment contract.

MoHRE offers multiple permit types depending on the employment arrangement. The most common include:

• Standard permit: Hiring employees from outside the UAE (typically valid for 2 years)
• Transfer permit: Moving an employee between employers
• Family-sponsored permit: Hiring individuals already residing in the UAE under family sponsorship
• Temporary / mission permits: For short-term or project-based work
• Part-time and freelance permits: Allow flexible or independent work arrangements
• Golden Visa permit: Required even for employees holding UAE Golden Residency

To obtain a work permit:

• The employee must be at least 18 years old
• The role must match the company’s licensed business activity
• The employer must have a valid license and no violations
• The worker must meet qualification or licensing requirements (if applicable)

"False Emiratisation" refers to employers misleading authorities about the number of Emiratis (UAE nationals) they've hired. This practice is illegal. If caught, employers face fines that increase based on the number of employees affected, of no less than AED 100,000 and no more than AED 1 million. They may also face additional penalties if they violate other UAE laws, like immigration regulations.

Employers who hire employees who are not authorized to work for them or use work permits for a purpose other than that for which they were issued can also be penalized with a fine of no less than AED 100,000 and no more than AED 1 million.

The United Arab Emirates labor law states that the minimum working age is 15 years. Employers must maintain a special register for employees under 18 at the work premises, showing their name, full name of their guardian or custodian, place of residence, date of employment, and job title.

Persons under 18 may not be employed in night work (from 7 PM to 7 AM). They are not allowed to work in jobs that are hazardous, exhausting, or detrimental to their health. Working hours are limited to 6 hours per day, with breaks after every 4 hours of continuous work. Overtime work or work on holidays is prohibited.