Employer of Record in the UAE: 2026 Cost and Compliance Guide

The UAE, and Dubai and Abu Dhabi in particular, is the Middle East's main hub for regional headquarters, sales, finance and technology roles. Employer costs are low by international standards: there is no income tax on salaries and no social security for expatriate employees. Instead, employers owe an end-of-service gratuity when employment ends.

The harder part is permission to work. Every employee needs a work permit from the Ministry of Human Resources and Emiratisation (MoHRE) and, for foreign hires, a residence visa sponsored by a UAE-licensed employer. An Employer of Record (EOR) with a UAE entity can act as that employer, so you can hire without first setting up a mainland or free zone company.

This guide covers costs, the UAE Labour Law (Federal Decree-Law No. 33 of 2021), work permits, Emiratisation, provider comparison and when to set up your own company. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in the UAE is a company with a UAE trade licence that employs staff on behalf of foreign businesses. It obtains the MoHRE work permit and, for expatriates, sponsors the residence visa, issues the employment contract, pays salary through the Wage Protection System (WPS), provides health insurance where required, and handles leave, termination and the end-of-service gratuity.

You direct the employee's day-to-day work; the EOR carries the formal employer obligations and invoices you monthly.

Most mainland employment is governed by the UAE Labour Law. Employees of free zone companies are generally under their free zone authority's own rules, and the financial free zones (DIFC in Dubai, ADGM in Abu Dhabi) have their own employment laws. Ask each provider which entity, and which jurisdiction, your hire will be employed under.

Under Article 6 of the UAE Labour Law, nobody may work in the UAE without a valid MoHRE work permit, and employers may not recruit or employ anyone without one. MoHRE issues 13 types of permit; the standard permit to recruit a worker from outside the UAE is valid for two years. The job must match the business activity on the employer's trade licence.

MoHRE's work permit fee ranges from AED 250 to AED 3,450 depending on the company's classification (A, B or C), which reflects its compliance record. Residence visa, Emirates ID and medical test fees come on top, so ask the EOR for an itemised onboarding cost.

Because the permit and visa belong to the employing entity, an EOR's compliance record matters: MoHRE can suspend new work permits for companies that pay wages late through WPS or break other rules.

What to ask an EOR

UAE employment cost has four layers: gross salary, the end-of-service gratuity accrual, mandatory costs such as health insurance and visa fees, and the EOR fee. There is no income tax to withhold and, for expatriates, no social security.

UAE salaries are usually split into basic salary and allowances (such as housing and transport). The gratuity is calculated on basic salary only, so the share of the package that is basic matters. Choose it in the estimator.

Annual cost at example salaries

What these figures include and exclude

• The gratuity is shown as an annual accrual on basic salary. It is paid in full when employment ends after at least one year (nothing is due for less than a year), within 14 days, and the total is capped at two years' wages.
• Employers may instead join MoHRE's voluntary Savings Scheme, paying 5.83% of basic salary a month (8.33% after 5 years) into an approved fund in place of the gratuity.
• There is no income tax on salaries and no social security for expatriates.
• Overtime and pay for unused annual leave are calculated on basic salary, so the basic share also affects those costs. Notice pay is based on the last wage.
• Work injury costs (full medical treatment and wages for up to a year, compensation of 24 months' basic salary within AED 18,000–200,000 for death or permanent total disability) fall on the employer; many insure them.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in the UAE.

The UAE Labour Law (Federal Decree-Law No. 33 of 2021, as amended) applies to private-sector employees on the mainland, Emirati and expatriate alike. Free zones have their own rules, and the financial free zones their own laws. Key rules below.

Contracts

Employment contracts are fixed-term; the old 'unlimited' contracts were converted. A fixed-term contract can be renewed or extended, and if both sides carry on working after it expires, it is treated as renewed on the same terms. Full-time, part-time, temporary, flexible, remote and job-sharing arrangements are all allowed.[1]

Probation

Up to 6 months, and it cannot be extended. An employer ending employment during probation must give 14 days' written notice. An employee leaving during probation must give 14 days' notice to leave the UAE, or one month to join another UAE employer.[1]

Non-compete

Contracts may include a non-compete clause limited in time, place and type of work to what protects legitimate business interests, for up to 2 years after the contract ends (Article 10).[1]

Working hours

Normal hours are 8 a day or 48 a week (Article 17), reduced by 2 hours a day during Ramadan. Employees get a break of at least one hour after 5 consecutive hours.[2]

Overtime

Up to 2 extra hours a day, paid at basic pay plus 25%, or plus 50% between 10pm and 4am (not for shift workers). Work on a rest day earns a substitute day or basic pay plus 50%.[2]

Annual leave

30 days of fully paid leave after one year's service; 2 days a month for service between 6 months and a year. Unused leave is paid out on basic salary when employment ends.[3]

Sick leave

After probation, up to 90 days a year: 15 days on full pay, 30 on half pay and 45 unpaid. The employer may not dismiss an employee or serve notice during sick leave.[3]

Maternity and parental leave

60 days of maternity leave: 45 on full pay and 15 on half pay, with extra leave if the mother or baby is ill. Both parents get 5 working days of paid parental leave, taken within 6 months of the birth.[3]

Rest days and public holidays

At least one paid rest day a week and paid leave on public holidays. Work on a public holiday earns a substitute day or basic pay plus at least 50% (Article 28).[3]

Payment of wages

Wages are paid through the Wage Protection System (WPS). The previous month's wages are due on the first day of each month; MoHRE starts alerts from the 2nd day, suspends new work permits from the 5th and fines from the 11th day of late payment.[4]

Notice of termination

Either side can end the contract for a legitimate reason with written notice of 30 to 90 days, during which full pay continues. When the employer gives notice, the employee may take one unpaid day a week to look for work.[5]

Arbitrary dismissal

Dismissal because the employee made a valid complaint to MoHRE or a lawsuit against the employer is unlawful. Compensation is set by the court up to 3 months' wages, on top of gratuity and notice pay.[5]

End-of-service gratuity

For expatriates with at least one year's continuous service: 21 days' basic salary for each of the first 5 years and 30 days for each year after, pro-rated for part years, capped at 2 years' wages and paid within 14 days of the end of employment. Emiratis receive pension benefits instead.[6]

Emiratisation

Companies with 50 or more employees must increase Emiratis in skilled jobs by 2% a year; companies with 20 to 49 employees in 14 sectors must employ at least two Emiratis by the end of 2025. Shortfalls carry annual contributions (AED 108,000 in January 2026 for the smaller companies).[7]

• Effective 1 January 2026

  UAE minimum wage of AED 6,000 a month for Emiratis in the private sector

  Relevant if you hire Emiratis, for example to meet Emiratisation targets; GPSSA pension contributions also apply to them.

See every country in the employment law changes tracker.

These EOR providers publish information about employing in the UAE. Prices are their own published starting rates in USD, from our pricing tracker. Quote-only providers are marked.

In the UAE, ask whether the provider employs through its own licensed entity or a partner, on the mainland or in a free zone, and what it charges for work permits, visas and health insurance.

Compare providers for the UAE

• RemoFirst vs RemotePassIn the UAE: US$199 vs US$349 a month (published starting prices).
• RemotePass vs Atlas HXMIn the UAE: US$349 vs US$599 a month (published starting prices).
• Globalization Partners vs RemoFirstIn the UAE: US$599 vs US$199 a month (published starting prices).
• Rippling vs Atlas HXMIn the UAE: quote vs US$599 a month (published starting prices).

For the UAE-specific selection criteria and a shortlist, see best EOR providers in the UAE. For each provider's products and pricing model, see the provider directory.

The alternatives are a mainland company licensed by the emirate's economic department, which can trade anywhere in the UAE, or a free zone company, which is quicker to set up and usually trades outside the UAE or within its zone. Either needs a trade licence that covers the jobs you hire for, an establishment card, and MoHRE or free zone registration to obtain work permits.

Companies pay corporate tax at 0% on taxable income up to AED 375,000 and 9% above it, with special rules for qualifying free zone companies. Running costs typically include the licence renewal, office space, accounting and audit, and visa processing.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role and packageDay 0

   Agree the monthly salary and its split into basic salary and allowances, and the job title, which must fit the employer's licence and the work permit.

2. 2

   Compare itemised quotes1–3 days

   Request UAE quotes covering the fee, deposit, work permit, residence visa, Emirates ID, health insurance, gratuity accrual and offboarding. Use the estimator to sanity-check totals.

3. 3

   Sign the service agreement

   Review liability for termination costs and gratuity, IP assignment, data protection and who bears visa costs if the hire leaves early.

4. 4

   Offer, permit and visa1–4 weeks

   The EOR issues a MoHRE job offer and contract, applies for the work permit and residence visa, and arranges the medical test and Emirates ID.

5. 5

   Payroll and insurance

   The EOR adds the employee to WPS payroll and health insurance from the start date.

6. 6

   Ongoing administrationMonthly

   Monthly WPS payroll, leave records, permit and visa renewals (usually every two years) and the gratuity at the end.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Employment contracts: duration and models in the private sector

   The Official Portal of the UAE Government (u.ae)

   Fixed-term contracts, probation (up to 6 months; 14 days' notice), non-compete (up to 2 years) and work arrangements. Updated 12 August 2026.

2. 2
   Working hours and overtime

   The Official Portal of the UAE Government (u.ae)

   8 hours a day or 48 a week (Article 17); overtime at 25% or 50%; rest-day work at 50%. Updated 12 August 2026.

3. 3
   Types of leaves

   The Official Portal of the UAE Government (u.ae)

   Annual, sick, maternity, parental, bereavement and study leave; work on public holidays (Article 28).

4. 4
   Payment of salaries/wages

   The Official Portal of the UAE Government (u.ae)

   Wage Protection System under Ministerial Resolution No. 340 of 2026: wages due on the first of the month; measures for late payment; no general minimum wage.

5. 5
   Terminating employment contracts and arbitrary dismissal

   The Official Portal of the UAE Government (u.ae)

   Articles 42–47: termination cases, 30–90 days' notice, summary dismissal, arbitrary dismissal compensation up to 3 months' wages.

6. 6
   End of service benefits for workers in the private sector

   The Official Portal of the UAE Government (u.ae)

   Article 51 gratuity (21 days a year for the first 5 years, 30 days after, capped at 2 years' wages) and the Savings Scheme (5.83% or 8.33% of basic salary a month).

7. 7
   Employing Emiratis in the private sector

   The Official Portal of the UAE Government (u.ae)

   Emiratisation targets and contributions, the AED 6,000 minimum wage for Emiratis from 1 January 2026, and GPSSA registration.

8. 8
   Work permits

   The Official Portal of the UAE Government (u.ae)

   Article 6 work permit requirement, 13 permit types, conditions and fees of AED 250–3,450 by company category. Updated 14 October 2026.

9. 9
   Work injury compensation in the UAE

   The Official Portal of the UAE Government (u.ae)

   Employer-paid treatment, wages during treatment and compensation of 24 months' basic salary (AED 18,000–200,000).

10. 10
    Working in free zones

    The Official Portal of the UAE Government (u.ae)

    Free zone employees are generally subject to their free zone authority's rules.

11. 11
    Law No. (11) of 2013 Concerning Health Insurance in the Emirate of Dubai, Articles 9–10

    Dubai Legislation Portal

    Employers must enrol employees in health insurance at no less than basic coverage, bear the cost and not charge it to employees.

12. 12
    GPSSA reviews the most prominent features of Federal Law No. (57) of 2023

    General Pension and Social Security Authority (GPSSA)

    For Emiratis first insured from 31 October 2023: 26% total (11% insured, 15% employer, of which the government pays 2.5% for salaries under AED 20,000); private-sector ceiling AED 70,000. GPSSA's FAQ still lists 12.5% employer, 5% insured and 2.5% government.

13. 13
    Corporate Tax General Guide

    Federal Tax Authority

    0% on taxable income up to AED 375,000 and 9% above it, for tax periods starting on or after 1 June 2023.

The UAE is one of the cheapest major markets to employ in: no income tax, no social security for expatriates, and an end-of-service gratuity that accrues at about 5.83% of basic salary. Through an EOR, plan for roughly 1.1–1.3× gross salary in total, depending on the basic-salary split and visa and insurance costs.

The UAE-specific questions are about permission and structure: whether the provider can get the work permit and visa for your hire's role, whose licence they will be employed under, and whether that is the mainland or a free zone.

If you're building a regional team, compare an EOR against your own company early with our EOR vs local entity guide. For other hubs, see Singapore and the United Kingdom.