Hiring in the UAE: Complete Guide 2027
Everything you need to know about hiring and managing employees in the United Arab Emirates
Overview
The UAE is the Middle East's leading business hub, combining zero income tax, world-class infrastructure, and a highly international workforce. Dubai and Abu Dhabi attract global talent across finance, technology, and professional services. Employment is governed by Federal Decree-Law No. 33 of 2021, which modernised the UAE Labour Law and introduced new contract types and enhanced protections. From January 2025, mandatory health insurance applies across all seven emirates — making EOR cost structuring more predictable than before.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in the UAE
UAE payroll runs monthly and must be processed through the Wage Protection System (WPS) — a government-mandated electronic salary payment system monitored by MOHRE. There is no income tax or employee social security for expatriates. For UAE nationals, GPSSA (General Pension and Social Security Authority) contributions apply at 15% employer and 11% employee of the contract salary for those first insured since 31 October 2023, the government paying 2.5 points of the employer share below AED 20,000 a month; earlier members pay 5% and their employer 12.5%. Mandatory health insurance — required since January 2025 across all emirates — is an employer cost ranging from AED 320/year (the basic package outside Abu Dhabi and Dubai) to AED 550–750/year plus VAT (Dubai's Essential Benefits Plan). End-of-service gratuity is due after one year of service and counts from day one: 21 days' basic salary per year for the first five years, 30 days thereafter. An EOR handles WPS registration, gratuity provisioning, health insurance enrolment, and MOHRE contract attestation.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract mandatory (bilingual Arabic/English)
- Must be attested by Ministry of Human Resources
- Probation up to 6 months
Leave & Time Off
- 30 days annual leave after 1 year
- Sick leave 15 days full pay, 30 days half pay
- Maternity leave 60 days (45 full pay, 15 half pay)
Termination Rules
- 30 days notice minimum
- End of service gratuity after 1 year
- Arbitrary dismissal entitles employee to compensation
COMPLIANCE
Visa Sponsorship and Compliance in the UAE
In the UAE, employment and residence are legally linked — every employee must be sponsored by their employer, and their visa is tied to that employment relationship. An EOR acts as the visa sponsor, managing the full process: medical fitness tests, issuance of the Emirates ID, the residence permit and the work permit through MOHRE or the relevant free zone authority. Emiratisation (Nafis) quotas require private sector companies with 50+ employees to hire UAE nationals for a growing percentage of skilled roles — non-compliance triggers contributions of AED 9,000 a month per unfilled role in 2026. An EOR monitors Emiratisation thresholds and advises on compliance obligations as your team grows.
Figures checked against official sources: Ministry of Human Resources and Emiratisation (Federal Decree-Law No. 33 of 2021, Emiratisation contributions); General Pension and Social Security Authority (Federal Decree-Law No. 57 of 2023); Dubai Health Authority (GC 03/2024); Federal Tax Authority (corporate tax); ICP (residence permits). Checked November 2026.
Key Challenges
- Mandatory health insurance (all emirates from Jan 2025)
- End-of-service gratuity liability from year one
- Emiratisation quotas for private sector employers
- Visa sponsorship tied to employment; a new employer needs a new work permit
- Work permit and attestation admin overhead
Country Highlights
Advantages
- Zero income tax for employees; 9% corporate tax above AED 375,000
- Highly international and multilingual workforce
- Gateway to Middle East and African markets
- World-class infrastructure and connectivity
- Fast EOR onboarding (3–5 days typical)
Popular Industries & Roles
Technology
Salary range: AED 180k-AED 360k
Dubai and Abu Dhabi are fast-growing tech hubs with strong demand for software engineering and AI talent
Financial Services
Salary range: AED 220k-AED 500k
The UAE is the Middle East's financial capital with world-class banking, wealth management, and FinTech talent
Real Estate & Construction
Salary range: AED 190k-AED 420k
Real estate, construction, and infrastructure are defining industries in the UAE with strong commercial and technical hiring
Top 3 Providers in the UAE
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Moha
- UAE EOR at AED 2,000/month plus AED 250 Emiratisation share
- Visas, arrival, PRO work in-house, 8 to 23 working days
- No setup or termination fee, refundable one-month deposit
- Own entity claimed, MOHRE licence not published
RemotePass
- MENA and Africa EOR specialist
- EOR from $349/month; no setup fees
- G2 4.8/5 (542 reviews); Trustpilot 3.8/5
- Visa sponsorship from $549/month
Auxilium
- GCC EOR across 6 Gulf markets
- UAE, Saudi, Qatar, Oman, Bahrain, Kuwait
- EOR cost calculator available
- Regional compliance and work permits
Frequently asked questions
Hiring in the UAE through an EOR, in short.
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How much does an employer pay on top of salary in the UAE?
Employer contributions in the UAE come to 0% expats / 12.5–15% nationals; the largest mandatory line is Health ins. + gratuity. With the other statutory benefits and a typical EOR fee, budget ~6–16% on top of gross salary.
What does an EOR charge per employee in the UAE?
Published EOR fees in the UAE run $500–800/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in the UAE pay in tax and contributions?
Income tax is 0% and employee social contributions are 0% expats / 5–11% nationals (EOS gratuity), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in the UAE?
5-10 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in the UAE?
Moha, RemotePass and Auxilium hold the first three places in our ranking for hiring in the UAE. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in the UAE.
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
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