Comprehensive employer of record solutions for businesses expanding to UAE
To thrive in the UAE-Dubai market, e-square's PEO & EOR solutions guide you through UAE's labor laws and regulations. As the UAE Employer of Record, we handle responsibilities including income tax, payroll tax and tax returns with the Dubai Tax Office. Partnering with e-square UAE EOR ensures efficiency and cost-effectiveness in your UAE market venture.
When you start a job in UAE-Dubai, your employer will provide you with a written document in both Arabic and English. This document outlines important information such as your job description, salary, working hours, leave entitlements and notice periods.
In UAE-Dubai, the standard workweek consists of 48 hours spread over six days. However, during the holy month of Ramadan, working hours are reduced to six hours per day. Employees are entitled to various types of leave, including annual leave, sick leave, maternity leave and others, as specified in the Labor Law.
Terminating employment in UAE-Dubai follows specific guidelines outlined in the Labor Law. Employers must have valid reasons for termination and notice periods vary based on the length of service. Likewise, employees are also required to provide notice when resigning.
One of the advantages of working in UAE-Dubai is the absence of personal income tax. This means employees do not need to pay income tax on their earnings. However, there are other taxes and fees that individuals and businesses may encounter.
Understanding employee compensation and benefits requirements in UAE
The UAE does not have a set minimum wage for expatriates. UAE nationals, however, have a minimum wage based on their education level, ranging from 3,000 dirhams (AED) per month for those without a high school certificate to 5,000 AED for college graduates. Overtime work on Fridays typically earns a 50% wage increase.
Employees usually receive 30 days of annual leave. Female employees who have completed a year of service are entitled to 45 days of fully paid maternity leave, while sick leave can extend up to 90 days, with varying pay rates. Paternity leave of five days is available within six months of a child's birth.
In Abu Dhabi and Dubai, employers are required to provide health insurance coverage not only for their employees but also for their spouses and dependents. Various health insurance options are available, and many companies offer assistance with this benefit.
Employees can take a one-time pilgrimage leave of 30 days without pay. For expatriates, there is no mandatory social security system. UAE nationals are entitled to social security benefits and pensions. Corporate tax of 9% applies to businesses with profits exceeding AED 375,000.
A PEO handles HR tasks, payroll and benefits administration, allowing you to focus on your core business operations.
Absolutely. PEOs/EORs streamline the onboarding process for your new hires.
Yes, PEO and EOR services are beneficial in Dubai for startups seeking to establish a robust HR and compliance foundation without investing in a full HR team.
An EOR specializes in local labor regulations, ensuring your workforce adheres to employment laws, tax requirements and more.
A PEO shares employment responsibilities, while an EOR assumes legal employment responsibility for your team.
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