The United Arab Emirates has a population of over 9 million people, with the top industries including oil, agriculture, and tourism. Payroll and compliance requirements can be complex with many regulations for starting a business and hiring employees.
Labor and Payroll considerations in the UAE include:
- No minimum wage is mandated, but UAE nationals must be paid according to certain requirements based on type of work and education level
- Employers must use the Wages Protection System (WPS) to pay employees
- As the UAE is part of the Gulf Cooperation Council (GCC), employers and nationals must both contribute to social security
- In accordance with the labor laws in the UAE, employees are entitled to payment for absence from work due to illness as follows: the first 15 days of sick leave the employee receives full pay, the next 30 days the employee receives half pay, and the following 45 days, the employee receives no pay
- Foreign workers need a work permit and entry visa to live and work in the UAE
- Foreign workers must be approved by the Ministry of Labor, once determined that the job cannot be filled by a UAE national
There are no statutory taxes in the UAE, and no year-end reporting is required. Funding payroll in the UAE is not as flexible, as companies must have a local bank account in order to pay employees. Funds for processing payroll must come from a bank account in the UAE. Our in-country experts can assist with the requirements needed for bank account set up.
Blue Marble simplifies payroll and compliance in the UAE with our cloud-based payroll platform and customized reporting. You have real-time access to your payroll costs, and our unique hybrid service model provides a US-based team and in-country experts in the UAE to help when questions come up. Stay ahead of payroll and compliance changes in the UAE. To learn more, click here