United Arab Emirates

UAE EOR Pricing: Cost of Using an Employer of Record in the United Arab Emirates

Hire employees in the UAE without opening a local entity. Transparent Employer of Record pricing, full payroll compliance via WPS, and fast onboarding for international companies expanding into the United Arab Emirates.

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The United Arab Emirates is one of the most dynamic business hubs in the Middle East, offering a strategic location between Europe, Asia, and Africa, a tax-friendly environment, and access to a highly diverse international talent pool. For companies expanding globally, the ability to hire employees in the UAE quickly while remaining compliant with local employment regulations is essential for tapping into the Middle Eastern and North African markets.

An Employer of Record in the UAE enables companies to hire local and expatriate employees without establishing a UAE mainland company or free zone entity. The EOR acts as the official employer on your behalf and manages visa sponsorship, payroll processing through the Wage Protection System (WPS), employment contracts, and UAE payroll compliance. This approach allows companies to enter the UAE market within weeks while eliminating the complexity of company formation and sponsor licensing.

Understanding the EOR cost in the UAE is essential when planning Middle East expansion. Compared to setting up a local entity, using an Employer of Record can reduce market entry timelines from months to weeks and significantly lower administrative and visa-related costs. With a compliant EOR partner, companies can focus on building teams in Dubai, Abu Dhabi, and other emirates while avoiding the regulatory burden of direct employment.

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EOR Rate: $499 /month per employee

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500+

Successful Global Placements

15 Days

Average Time-to-Shortlist

30+

Countries with Active Hiring

97%

Candidate Retention Rate

Employment Overview: United Arab Emirates

Working Hours

48h / week

Annual Leave

30 days

Public Holidays

13 days

Employer Social Security

12.5%

Employee Social Security

5%

Corporate Tax

0% - 9%

Currency

AED

Timezone

UTC+4

United Arab Emirates: Detailed Country Information

The UAE is a regional business hub with a diversified and investment-friendly economy.

General Information

CapitalAbu Dhabi
Population11,346,000
Official LanguageArabic
Minimum WageThere is no statutory minimum wage.

Employment Laws

Probation PeriodUp to 6 months
Notice Period30 days

Leave Entitlements

Sick LeavePaid sick leave may be available for eligible employees under UAE labor law.
Maternity Leave60 days
Paternity Leave5 days

Social Security

Employer Rate12.5%
Employee Rate5%

The UAE social security system is administered by the General Pension and Social Security Authority (GPSSA) and applies only to UAE nationals. Mandatory pension contributions are shared between employer and employee, and registration is required upon hiring. Expatriate employees are not subject to social security contributions but are entitled to End of Service Gratuity under UAE Labour Law.

Taxation

Corporate Tax0% – 9%
VAT Rate5%

The UAE applies a 9% federal Corporate Income Tax (CIT) on taxable profits exceeding the applicable threshold, effective from 2023. Qualifying Free Zone Persons may benefit from a 0% CIT rate on qualifying income, subject to substance requirements and regulatory conditions. The UAE does not levy personal income tax, but VAT (5%) and transfer pricing compliance obligations may apply depending on business activities and revenue thresholds.

Termination & Bonus

Employment termination in the UAE requires written notice in accordance with the employment contract and UAE Labour Law (typically 30–90 days). Employers must pay accrued salary, unused leave, and statutory End of Service Gratuity (EOSG) upon termination, unless dismissal is for legally justified gross misconduct. Final settlements must be processed within the legally prescribed timeframe to avoid labour claims or administrative penalties.

Bonus Requirements:

No mandatory bonus

Economic Indicators

Latest: 06/26

Cost of Living Index12.782 AED

Additional Notes

EOR employment in the UAE is governed by federal labor laws requiring fixed-term contracts and statutory benefits. Payroll administration must comply with the Wage Protection System. End-of-service gratuity obligations apply upon termination. Regulatory compliance varies by free zone and mainland jurisdictions. An EOR manages payroll accuracy and employment compliance.

Employer Cost Breakdown in the UAE (2026)

Personal Income Tax0% (No income tax in UAE)
Mandatory Health InsuranceAED 500–3,000+/year per employee
End of Service Gratuity (EOSG)21 days salary/year (first 5 years)
Visa & Emirates ID ProcessingAED 3,000–7,000 (one-time)
WPS Processing FeesAED 10–15/month per employee
Total Employer Payroll Cost≈8–15% of gross salary

What's Included in EOR Pricing

EOR payroll processing through UAE WPS
UAE Labour Law compliance management
Visa sponsorship and Emirates ID processing
Employee benefits administration
UAE-compliant employment contract drafting
End of Service Gratuity (EOSG) management
HR administration and employee support
Offboarding, visa cancellation, and termination compliance

How EOR Pricing Works in the UAE

1

Choose Your Plan

Select the Employer of Record (EOR) service tier that fits your hiring needs in the UAE. Transparent monthly pricing per employee with no entity setup costs or complex licensing requirements.

2

Onboard Employees

We prepare UAE-compliant employment contracts, process work visas and Emirates ID, register employees with the Wage Protection System (WPS), and complete onboarding within 2–4 weeks.

3

We Manage Compliance

Our UAE HR and payroll specialists manage payroll processing through WPS, End of Service Gratuity calculations, mandatory health insurance enrollment, and all compliance with UAE Labour Law.

4

You Focus on Business

You manage the employee's daily work while we handle payroll, visa renewals, compliance, and employment administration across Dubai, Abu Dhabi, and other emirates.

EOR vs Local Entity in the UAE

FactorEORLocal Entity
Setup Time2–4 weeks2–4 months
Setup CostLow (no license required)High (AED 15,000–50,000+ license fees)
Visa SponsorshipFully managed by EORCompany must obtain sponsor license
WPS ComplianceFully includedMust register and manage internally
RiskTransferred to EORFull employer liability
ScalabilityHire/terminate flexiblyFixed operational overhead

UAE Employment Law Overview

The UAE has modernized its labor regulations significantly with the introduction of the UAE Labour Law (Federal Decree-Law No. 33 of 2021), which came into effect in February 2022. This law provides a comprehensive framework for employment in the private sector across all emirates.

  • Working Hours: Standard work week is 48 hours (8 hours per day, 6 days per week). During Ramadan, working hours are reduced by 2 hours per day. Friday is typically the designated rest day.
  • Probation Period: Maximum of 6 months. During probation, either party may terminate the contract with 14 days' written notice. Probation cannot be extended or renewed.
  • Notice Period: Ranges from 30 to 90 days as specified in the employment contract. Minimum notice period cannot be less than 30 days.
  • Paid Annual Leave: 30 calendar days per year after completing one year of service. Employees are entitled to 2 days per month during the first year.
  • End of Service Gratuity (EOSG): Employees completing one year of service are entitled to 21 days' basic salary for each of the first five years, and 30 days for each subsequent year.
  • Work Permits: All expatriate employees require valid work permits and residence visas sponsored by their employer through the Ministry of Human Resources and Emiratisation (MOHRE).

Proven Global Hiring Success in the UAE

Case Study: Fintech Company Builds Regional Hub in Dubai

A fast-growing fintech company targeting the MENA region needed to establish a regional presence in Dubai and hire senior product managers, software engineers, and compliance specialists within a tight timeline. Through Gini Talent's global recruitment and EOR services, the company successfully built a high-performing team while remaining fully compliant with UAE Labour Law and visa sponsorship requirements.

  • Time-to-shortlist: 8 business days
  • Qualified candidates presented: 42 pre-screened professionals
  • Hires completed: 15 employees hired across Dubai and Abu Dhabi
  • Visa processing time: Average 12 business days
  • Retention after 6 months: 100%

This case study demonstrates how the right EOR partner can accelerate Middle East expansion and enable companies to hire employees in the UAE quickly while ensuring full regulatory compliance.

What Our Clients Say

"Gini helped us establish our Dubai office without the complexity of setting up a local entity. Their EOR service handled all visa processing and WPS compliance seamlessly, allowing us to focus on scaling our MENA operations."

CEO

Fintech Company · United Arab Emirates

"We needed to hire customer success managers in the UAE quickly to support our growing client base. Gini delivered a high-quality shortlist in under 10 days and managed the entire visa and onboarding process professionally."

HR Director

SaaS Company · United Kingdom

UAE EOR FAQ

Related Resources

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About This Guide

Gini Talent Editorial Team

EOR & Global Employment Specialists

10+ years of experience in international employment, Employer of Record (EOR) services, and Middle East labor law compliance. Our team works with companies hiring in the UAE and across 30+ countries, helping organizations navigate WPS requirements, visa sponsorship, cross-border hiring, and workforce expansion strategies.

Reviewed by

UAE Employment Law Advisor

Legal Compliance Reviewer

Last reviewed: March 2026