Overview
Capital
Abu DhabiCurrency
UAE DirhamDate Format
dd/mm/yyyy 
Public holidays calendar
Taxes
Employer
12.50% - Social Security
Employee
5.00% - Social Security
Minimum Wage
General
No official minimum wage.
Paid Time Off
Vacation days
Employers must allow all employees to take leave without pay for Haji one time during their employment. This cannot last more than 30 days. Employees who has been in the company for more than six months but less than a year will accumulate two days per every month in the company. After 1 year, they will be entitled to a minimum of thirty days off.
Sick days
Employees are not entitled to sick leave during their probation period. However, after those 6 months, employees are paid 100% of their wages for the first 15 days of the sick leave, 50% for the next 30 days and are not reimbursed for any additional days following.
Maternity Leave
45 days of maternity leave.
Paternity Leave
3 days paid paternity leave.
Parental Leave
No specific laws.
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.
