UAE Compensation & Benefits
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 is a global PEO that can help your company through United Arab Emirates compensation and benefit outsourcing services. We will hire employees who work for you on your behalf and add them to our compliant payroll and existing benefits plans. You’ll be able to keep your focus on making sure your new expansion succeeds.
United Arab Emirates Compensation Laws
The UAE does not have a national minimum wage, 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 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 11 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. Male government employees receive three days of paternity leave, while private companies should offer three or more days off.
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. Sharjah gives employees a “Health Card” through which workers and their families can access government hospitals. Ras Al Khaimah does not have any compulsory forms of insurance, but most employers offer private health insurance. If you work with Globalization Partners, we will provide private health coverage to your employees.
Restrictions for Benefits and Compensation
The United Arab Emirates does not have many restrictions on benefits and compensation. Although not common in the country, trade unions or collective bargaining agreements (CBAs) could stipulate separate terms, so it is best to look for any agreements when writing an employment contract.
Work With Globalization Partners
When you are ready to expand to the United Arab Emirates, choose Globalization Partners for a faster process. Contact us today to learn more.