UAE Compensation & BenefitsReading Time: 2 minutes
Compensation and benefits are essential to ensure your employees’ happiness and longevity. These factors also play a crucial role in your compliance with United Arab Emirates (UAE) compensation laws.
Globalization Partners provides your company with access to local talent through our services in the UAE. We will hire employees who work on your projects and ensure that their payroll and benefits plans are locally compliant. You’ll be able to keep your focus on making sure your project succeeds.
United Arab Emirates Compensation Laws
The UAE does not have a national minimum wage for expatriates, but UAE nationals have specific salary requirements based on their education. A UAE national with no high school certificate cannot earn less than 3,000 dirhams (AED) per month. High school graduates have a minimum wage of 4,000 AED per month, and employees with a college certificate cannot earn less than 5,000 AED per month.
Another factor in the United Arab Emirates’ compensation laws is overtime. Employees who work on a Friday, which is designated as a statutory day off, are entitled to an increase of 50% or more in pay or another day off.
Your United Arab Emirates benefit management plan must include guaranteed benefits required by law. A good place to begin this plan is with time off. Employees are entitled to days off with full pay during the country’s official public holidays. Vacation leave depends on how long the employee has worked for your company, but the market norm is 30 calendar days of paid vacation.
Working women in the UAE who are pregnant and have worked at least one year for your company are entitled to 45 days of maternity leave with full pay. Women who have not worked one full year for your company should get at least half pay during their leave. As of 31 August 2020, private sector employees in the UAE are granted five days of paternity leave, under a new order issues by the country’s President. The leave must be taken within six months of the birth of the child.
United Arab Emirates Benefit Management
A strong United Arab Emirates benefit management plan includes both guaranteed benefits and additional perks that employees may expect in a particular position. One benefit required by law is the pilgrimage leave. UAE employment law stipulates all workers are entitled to a one-time pilgrimage leave of 30 days without pay during the employee’s employment contract.
Abu Dhabi and Dubai have a mandatory health insurance program that must be provided to all employees, their spouses, and their dependents. While not mandatory in other Emirates, it is common for employers in the UAE to provide employees with employer-sponsored health insurance. If you work with Globalization Partners, our team in the UAE are all covered by private health insurance.
Restrictions for Benefits and Compensation
The United Arab Emirates does not have many restrictions on benefits and compensation, including no set minimum wage for expat employees. The UAE Penal Code (Law No. 3 of 1987, as amended) makes it a criminal offense for anyone to found to be, joining or participating in a Trade Union or to participate in a labor strike.
Work with Globalization Partners
When you are ready to engage talent to support your business in the United Arab Emirates, choose Globalization Partners for a fast and easy process. Contact us today to learn more.