Hiring employees in the United Arab Emirates can be an attractive option for international companies looking to build a presence in the Middle East. The UAE has a large international workforce and a business environment that supports companies operating across borders.
However, hiring in the UAE requires more than finding a candidate and agreeing on a salary. Companies need to understand employment contracts, work permits, payroll, working hours, annual leave, end-of-service benefits, and the rules that apply to their specific business structure.
This guide explains the main considerations for companies hiring employees in the UAE in 2026.
Can a Foreign Company Hire Employees in the UAE?
Yes, but the correct employment structure depends on how the company operates in the UAE.
A company establishing its own UAE operation may hire employees through its local entity and handle employment administration, work permits, payroll, and compliance directly.
Another option is to use an Employer of Record (EOR). An EOR can employ the worker locally on behalf of a foreign company, while the foreign company manages the employee's day-to-day work.
This can be useful when a company wants to hire in the UAE without immediately establishing its own local entity.
Companies should also consider whether they will operate in mainland UAE or within a free zone, because the applicable procedures and authorities can differ.
UAE Employment Law
Private-sector employment in the UAE is primarily governed by Federal Decree-Law No. 33 of 2021, as amended, together with its implementing regulations and related decisions.
The law covers areas including employment contracts, working hours, overtime, leave, employee rights, termination, and end-of-service benefits. Certain categories of workers and certain jurisdictions can be subject to different rules.
For companies hiring internationally, this means that employment compliance should be checked before the employee starts work.
Employment Contracts in the UAE
Employment contracts should clearly define the relationship between the employer and employee.
The UAE private-sector framework provides for fixed-term employment contracts and recognizes different work arrangements, including full-time, part-time, temporary, flexible, remote work, and job sharing.
An employment contract should cover important details such as:
- Employee's position and responsibilities
- Start date
- Workplace
- Salary
- Contract duration
- Working arrangements
- Leave entitlement
- Other agreed employment conditions
For expatriate employees, the employment offer and contract are also connected to the work-permit process.
Work Permits for Foreign Employees
A foreign employee generally needs the appropriate authorization to work legally in the UAE.
For employees recruited by private-sector companies, the employer provides an official job offer that follows the applicable MoHRE requirements. Once the offer is signed and registered, the employer can proceed with the relevant work-permit process.
Companies should not assume that an employee can simply enter the UAE on a visit visa and begin working.
The appropriate work authorization should be arranged before employment begins.
UAE Working Hours
For most private-sector employees, normal working hours are 8 hours per day or 48 hours per week.
During Ramadan, normal working hours are reduced by two hours per day. Specific sectors and categories of workers can have different arrangements under the applicable regulations.
Overtime can also apply. In general, additional working hours are subject to legal limits and additional compensation. The standard overtime premium is at least 25% above the normal remuneration based on basic salary, with a higher premium applying to certain night overtime.
Companies should therefore consider working hours and overtime when calculating the actual cost of employment.
Annual Leave
Annual leave is an important part of the UAE employment package.
Employees who have completed one year of service are entitled to at least 30 days of paid annual leave.
Employees who have completed more than six months but less than one year are generally entitled to two days of leave for each month of service.
Companies should also account for UAE public holidays and weekly rest periods when planning employee schedules.
Salary and Payroll in the UAE
The UAE Labour Law does not establish a general minimum salary for private-sector employees. Salary is normally agreed between the employer and employee and documented in the employment contract.
For companies registered with the Ministry of Human Resources and Emiratisation (MoHRE), wages are generally processed through the Wages Protection System (WPS).
The WPS is designed to monitor salary payments and help ensure that employees receive their wages on time and according to the agreed employment terms. UAE authorities updated the WPS framework in 2026 through Ministerial Resolution No. 0340 of 2026.
For an international company, payroll compliance should therefore be considered before hiring rather than after the employee starts.
Employee Benefits
The total cost of hiring in the UAE is more than the employee's basic salary.
Depending on the employment arrangement, companies may need to consider:
- Health insurance requirements
- Work-permit and government fees
- Recruitment-related costs
- Annual leave
- Public holidays
- End-of-service benefits
- Payroll administration
- Other contractual benefits
- Emiratisation requirements where applicable
The exact obligations can depend on the employee, employer, location, and applicable employment regime.
End-of-Service Gratuity
End-of-service gratuity is particularly important when hiring expatriate employees.
For qualifying full-time foreign workers who complete at least one year of continuous service, the gratuity is calculated using the employee's basic salary, rather than allowances such as housing or transportation.
The general calculation is:
- 21 days of basic salary for each year of service during the first five years
- 30 days of basic salary for each additional year after five years
The total gratuity is subject to a maximum of two years' wage under the applicable rules.
This is an important cost to include when comparing the UAE with other countries.
Emiratisation Requirements
Companies hiring in the UAE should also check whether Emiratisation requirements apply to them.
Certain private-sector companies have obligations relating to the employment of UAE nationals. For example, the UAE government states that the minimum monthly wage for Emiratis working in the private sector increased to AED 6,000 from January 1, 2026.
The exact requirements can depend on the company's classification, workforce size, and activities.
International companies should verify their specific obligations before creating their hiring plan.
Hiring Remote Employees in the UAE
Remote work is recognized within the UAE's private-sector employment framework.
The UAE employment framework includes remote work as one of the available work arrangements. Where an employee works remotely, the employer can establish specific working hours as part of the arrangement.
However, remote work does not automatically remove employment, tax, immigration, payroll, or compliance considerations.
A company should determine: where the employee will physically work, which employment law applies, whether a work permit is required, how payroll will be processed, which benefits apply, and whether the company needs a local entity or another employment structure.
Local Entity vs. EOR in the UAE
There are two common approaches for an international company.
Option 1: Establish a Local Entity
A company can establish its own UAE operation and hire employees directly.
This can provide greater control over employment and business operations, but it can also involve additional setup, administration, payroll, immigration, and compliance responsibilities.
Option 2: Use an Employer of Record
An EOR can employ workers locally on behalf of a foreign company.
This can be useful for companies that want to test the UAE market or hire a small number of employees without immediately establishing their own local employment infrastructure.
The company still manages the employee's daily responsibilities, while the EOR handles many of the local employment administration requirements.
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How Much Does It Cost to Hire an Employee in the UAE?
The cost depends heavily on the employee's salary, benefits, location, employment structure, and company requirements.
A basic calculation should consider: Employee cost = Salary + Benefits + Employer obligations + Payroll/administration + Work authorization costs + End-of-service obligations.
For example, a company hiring through its own UAE entity may have costs associated with establishing and maintaining the entity.
An EOR may instead charge a service fee in addition to the employee's compensation and applicable employment costs.
Because these costs vary significantly, companies should calculate the total employment cost rather than comparing salaries alone.
Step-by-Step UAE Hiring Process
Step 1: Define the position Determine the job title, responsibilities, salary, location, and working arrangement.
Step 2: Choose the employment structure Decide whether to hire through your own UAE entity, an EOR, or another legally appropriate arrangement.
Step 3: Check employment requirements Review work-permit, contract, payroll, benefits, and applicable Emiratisation requirements.
Step 4: Make the offer Prepare an employment offer that clearly explains salary, position, working conditions, and other important terms.
Step 5: Prepare the employment contract Ensure the final contract reflects the agreed employment conditions and applicable UAE requirements.
Step 6: Arrange work authorization for foreign employees, complete the required work-permit and immigration procedures.
Step 7: Set up payroll Register and configure payroll according to the applicable requirements, including WPS where applicable.
Step 8: Onboard the employee Provide the employee with the necessary company information, policies, equipment, benefits, and access to internal systems.
Step 9: Maintain compliance Continue monitoring payroll, leave, contract changes, benefits, work authorization, and other employment obligations.
Common Mistakes Companies Make When Hiring in the UAE
International companies should avoid treating UAE hiring like hiring in their home country. Common problems include:
- Hiring before arranging the appropriate work authorization
- Using an incorrect employment structure
- Ignoring WPS requirements
- Focusing only on gross salary
- Forgetting end-of-service gratuity
- Not checking Emiratisation requirements
- Using an outdated employment contract
- Assuming all UAE jurisdictions have identical procedures
- Treating contractors and employees as the same
- Failing to keep employment records updated
These mistakes can create additional administrative costs and compliance problems.
UAE Hiring Checklist
Before hiring an employee in the UAE, companies should check:
- Employment structure selected
- Candidate's work location confirmed
- Salary and benefits agreed
- Employment contract prepared
- Work permit requirements checked
- Payroll process established
- WPS requirements reviewed
- Annual leave requirements considered
- End-of-service gratuity included in cost calculations
- Health insurance requirements checked
- Emiratisation obligations reviewed where applicable
- Free-zone or mainland requirements confirmed
- Employee onboarding prepared
Frequently Asked Questions
Can a foreign company hire someone in the UAE?
Yes, but the company needs to use an appropriate legal employment structure and comply with applicable UAE employment and work-authorization requirements.
There is no general minimum salary stipulated in the UAE Labour Law for private-sector employees. However, specific rules apply to certain categories, including UAE nationals working in the private sector.
Employees who complete one year of service are generally entitled to at least 30 days of paid annual leave.
For qualifying expatriate employees, it is generally calculated using basic salary, with 21 days' salary per year for the first five years and 30 days per year after that, subject to the applicable rules and maximum.
Yes. An international company can use an Employer of Record to employ workers locally instead of immediately establishing its own local employment infrastructure, subject to the applicable legal and contractual arrangements.
Is there a minimum salary in the UAE?
How many vacation days do UAE employees receive?
What is UAE end-of-service gratuity?
Does the UAE use an EOR model?
Final Thoughts
Hiring employees in the UAE can give international companies access to a highly international labour market, but successful hiring requires careful planning.
The most important question is not simply "What salary should we offer?"
Companies should first understand where the employee will work, which employment structure they will use, what work authorization is required, how payroll will operate, and which local employment obligations apply.
For companies hiring one or several employees in the UAE, comparing a local entity with an EOR can help clarify the administrative and compliance requirements before making a hiring decision.
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Legal Disclaimer
This article is provided for general informational purposes only and does not constitute legal, tax, immigration, or employment advice. UAE employment requirements can vary depending on the employer, employee, business activity, jurisdiction, and applicable regulations. Companies should verify current requirements with the relevant UAE authorities or qualified professional advisers before hiring.
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