Employer of record in the UAE and Dubai: costs and rules

UAE rules that decide what a hire costs

Nationality decides which system applies.

Expatriates

No pension or social security. The employer cost is the end-of-service gratuity after 1 year of service: 21 days of the last basic wage per year for the first 5 years, 30 days per year after that, capped at 2 years' wage in total (art. 51). The Cabinet may approve savings schemes in place of the gratuity (art. 51(8)). Health insurance is mandatory in Dubai and Abu Dhabi and paid by the employer; we have not priced it. Unemployment insurance (ILOE) is paid by the employee.

UAE nationals

Under Federal Decree-Law 57 of 2023, the employer contributes 15% to GPSSA, of which the government covers 2.5% for salaries under AED 20,000, leaving 12.5%; the employee pays 11%. Members under the old law pay 15% and 5%. The contribution salary is basic pay plus fixed allowances, between AED 3,000 and AED 70,000 a month. Abu Dhabi nationals join ADPF at 15% and 11%, and GCC nationals contribute at their home-country rate up to 15%. From January 1, 2026, private employers must pay Emiratis at least AED 6,000 a month in basic wage on new and renewed permits. Pension and Emirati wage figures are from secondary sources (Zoho, Middle East Briefing); gpssa.gov.ae rejected our requests.

Rules for everyone

• Probation: up to 6 months (art. 9).
• Notice: set in the contract, at least 30 and at most 90 days (art. 43).
• Annual leave: 30 days a year after 1 year of service, 2 days a month after 6 months (art. 29).
• Hours: at most 8 a day and 48 a week (art. 18).
• Pay: monthly, through the Wage Protection System for MoHRE-registered employers.

Public holidays are set each year by Cabinet resolution, and we have not confirmed the 2026 count or the WPS payment deadline from an official page. MoHRE (mohre.gov.ae) is the place to check.

Employment costs and rules in United Arab Emirates

What an EOR charges to employ someone in United Arab Emirates

The gratuity math on an AED 147,000 package

We assume a basic wage of AED 7,350 a month (60% of AED 12,250), with the rest in allowances, and a daily wage of basic / 30.

The divisor is not settled. Some calculators use basic x 12 / 365, which gives 7,350 x 12 / 365 x 21 = AED 5,074.52 a year. From year 6 the accrual rises to 30 days, or 7,350 / 30 x 30 = AED 7,350 a year (5.00%). An employee leaving after 3 years on the same basic wage is owed 3 x 5,145 = AED 15,435.

Try other packages in the international employee cost calculator.

EOR or setting up in the UAE

With almost no payroll levy on expatriates, the EOR fee of AED 26,397.93 a year is the largest cost on top of salary in the example: 26,397.93 / 5,145 = 5.1 times the gratuity accrual. A company of your own would remove the fee but bring licensing, visa and WPS registration work, which we have not priced. Our EOR versus entity guide covers how to compare the two.

Contractors in the UAE

A contractor costs you no gratuity, but someone working full time under your direction looks like an employee, and an accrued gratuity of AED 5,145 a year would be owed on this salary. Pay real freelancers through contractor management platforms; Remote's contractor of record plan is $325 a month and Multiplier's is $400 on annual billing (October 2026 prices).

Which EOR suits a UAE hire

Multiplier scores 79/100 on our published method and charges $459 a month on an annual plan or $499 monthly; its deposit is set from costs, fees and notice periods, so a 90-day notice clause can raise it. Oyster, at 64/100, charges $699 with a deposit of at least one month of total service cost under its terms (its pricing page, in the fee table, gives no amount), credited about 60 days after the end date.

Ask each provider whether it holds its own UAE entity and how it splits basic pay from allowances, since that split drives the gratuity. Terms and complaints are in the Deel review, Remote review and Oyster review, with every provider on the best EOR list. Gulf neighbors: Saudi Arabia and Qatar.