UAE Employer Rates and Thresholds 2026

The UAE has no income tax on salaries and no social security for expatriate employees. Instead, the employer accrues an end-of-service gratuity: 21 days' basic salary for each of the first five years of service and 30 days for each year after, paid when employment ends after at least a year.

Emiratis are covered by the GPSSA pension scheme instead, and employers also pay for health insurance (compulsory in Dubai) and work permits and visas for expatriates. Those costs vary and aren't in the table.

The gratuity accrual for a full year, assuming basic salary is the whole salary (it's often a smaller share, which lowers the accrual):

• 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.
• 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.
• 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).
• 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.
• 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%.
• 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.

• 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.
• 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.
• 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.
• 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).

• 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.
• 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.
• 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.
• 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).

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 January 2026: UAE minimum wage of AED 6,000 a month for Emiratis in the private sector. MoHRE set a minimum monthly wage of AED 6,000 for UAE nationals working in the private sector from 1 January 2026. There is still no general minimum wage for expatriates.