Overview

Capital
Abu Dhabi
Currency
UAE Dirham
Date Format
dd/mm/yyyy

calendar icon Public holidays calendar

Taxes

Employer
12.50% - Social Security
Employee
5.00% - Social Security

Minimum Wage

General
No official minimum wage.

Working Hours

General
Full time employment is considered 48 hours weekly, and 8 hours daily. During Ramadan, working hours is reduced by 2 daily.
Overtime
Overtime per day cannot exceed 2 hours. Between 9pm-4am, and on holidays pay is 150%.

VAT

General
The standard rate is 5%.

Payment

Payroll Frequency
Salaries are most commonly paid on monthly basis, however the frequency can be agreed upon between the employer and employee. Salaries must be paid by the 25th of every month for working days from the first to last day of the month.

Mandatory Benefits

Pension Fund
Total pension fund contribution is 26%, with 6% contribution from the government. Employer are required to contribute 15% of employees wages to their pension fund. Employees are required to contribute 5% of their wages to their pension fund.
Social Security
Employee contributes 5%. Employer contributes 12.5% (15% in Abu Dhabi). Minimum salary for contributions is 1,000 AED, and the ceiling is 50,000 AED. Expats arent required to make contributions.

Termination

Termination Process
For contracts with undefined terms, 30 days notice is required. Payment in leiu of notice is allowed. For day workers, 1 week notice is required until 1 year, from 1-5 years two weeks is needed, and from the 5th year one month.
Advance Notice
Advance notice period is 30 days.
Severance Pay
Workers are entitled to 21 days pay for every year up to 5, and 30 days for each additional year.