Cost to Hire an Employee in the UAE (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 7.5% at a AED 240,000 salary: AED 17,992 a year, of which the largest is end-of-service gratuity (accrual) (basic 100%).
• An EOR fee, if you hire without your own entity. The providers in our United Arab Emirates guide publish starting prices of US$199–599 per employee per month; see how to choose an EOR in the UAE for the shortlist.

Mandatory employer costs at a AED 240,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Income tax on salaries: None; employers withhold no income tax
• Social security (expatriates): None; an end-of-service gratuity is accrued instead
• End-of-service gratuity: 21 days' basic salary per year for the first 5 years, 30 days after; capped at 2 years' pay
• Minimum wage: None for expatriates; AED 6,000 a month for Emiratis (from 1 Jan 2026)
• Paid annual leave: 30 days after one year (2 days a month after 6 months)
• Working hours: 8 a day or 48 a week; 2 hours less a day in Ramadan

• 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.

Without your own entity in the UAE, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own UAE company. See the comparison in our United Arab Emirates guide and EOR vs local entity.