Employment and payroll in the UAE
What UAE labour law requires of private-sector employers and what it gives their staff: contracts and probation, working hours and overtime, annual and other leave, paying salaries through WPS, end-of-service gratuity, unemployment insurance and Emiratisation targets.
Private-sector employment in the UAE is governed by Federal Decree-Law No. 33 of 2021, known as the Labour Law, in force since 2 February 2022, together with its Implementing Regulation. It applies to employers and workers on the mainland and in the free zones other than the financial free zones, and the Ministry of Human Resources and Emiratisation (MOHRE) oversees it.
The UAE Labour Law
In force since 2 February 2022
Private-sector employment in the UAE is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships (the UAE Labour Law), which came into effect on 2 February 2022, together with its Implementing Regulation, Cabinet Resolution No. 1 of 2022.
- Applies to
- Employers and workers in the UAE private sector (mainland and non-financial free zones)
- Source
- Employment contracts: duration and models in the private sector (updated 12 Aug 2026), The Official Portal of the UAE Government (u.ae)
- Checked
Contracts and working hours
Every contract is for a fixed term and can be renewed. Probation can last up to six months, and after it the notice period agreed in the contract must be between 30 and 90 days. Normal working hours are at most 8 a day or 48 a week. Overtime is limited to 2 hours a day and is paid at the basic hourly wage plus at least 25%, or plus at least 50% between 10 pm and 4 am.
Leave
Workers get at least 30 days’ paid annual leave for each year of service, and 2 days a month once they have served more than six months. After probation, sick leave runs to 90 days a year: 15 on full pay, 30 on half pay and 45 unpaid. Maternity leave is 60 days, 45 of them on full pay, and each new parent, mother or father, gets 5 working days of parental leave.
Pay and the end of service
Employers registered with MOHRE pay salaries through the Wage Protection System, with wages due on the first day of each month. An expatriate worker with at least a year of continuous service earns an end-of-service gratuity of 21 days’ basic wage for each of the first five years and 30 days’ for each year after, up to two years’ wage. It is paid with the other final dues within 14 days of the end of the contract.
Insurance and Emiratisation
Most employees must join the ILOE unemployment insurance scheme. Companies with 50 or more workers must raise the share of Emiratis in skilled jobs by 2 percentage points a year, and the minimum monthly wage for Emiratis in the private sector is AED 6,000 from 1 January 2026. There is no general minimum wage.
The calculators below work out gratuity, overtime pay, leave salary and the ILOE premium and benefit, with every step shown.
Guides on employment and payroll
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End-of-service gratuity in the UAE: how it is worked out
How UAE end-of-service gratuity works for private-sector staff: who qualifies, 21 and 30 days of basic wage a year, the 2-year cap and examples in AED.
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Leave in the UAE private sector: annual, sick, maternity and other leave
How many days of annual leave UAE private-sector staff get, how leave is paid, and the rules for sick, maternity, parental, bereavement and study leave.
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Resignation and termination under UAE labour law: notice and final pay
How a UAE employment contract can end: notice of 30 to 90 days, resigning, dismissal without notice, arbitrary dismissal and final pay within 14 days.
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Emiratisation rules for private companies: targets and contributions
Which UAE private companies have Emiratisation targets, the 2% a year rule for 50+ staff, the 20 to 49 staff rule, contributions, Nafis and Emirati pay.
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ILOE unemployment insurance: who must subscribe and what it pays
Who must join the UAE's ILOE unemployment insurance, the AED 5 and AED 10 monthly premiums, the 60% benefit for 3 months, how to claim and the AED 400 fines.
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Working hours and overtime pay under UAE labour law
UAE private-sector working hours (8 a day, 48 a week), overtime limits and pay at 25% or 50% extra, rest-day and holiday work, Ramadan hours, with examples.
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Probation period rules in the UAE
How long probation can last in the UAE private sector, the notice each side must give, moving to another employer, the 1-year permit bar and leave on probation.
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Wage Protection System (WPS): what UAE employers must do
How the UAE Wage Protection System works: which employers must pay salaries through it, the due date and 85% rule, exclusions and MOHRE's steps on late pay.
Calculators for this topic
Gratuity calculator
End-of-service gratuity for a private-sector employee, with every step of the calculation shown.
Overtime pay calculator
Pay for overtime, night work and rest-day work under the labour law.
Leave salary calculator
Annual leave days built up and the pay due for them.
ILOE insurance calculator
The unemployment insurance category, premium and monthly benefit for a salary.
Frequently asked questions
Which law covers private-sector employment in the UAE?
Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, in force since 2 February 2022, with its Implementing Regulation, Cabinet Resolution No. 1 of 2022. It covers the mainland and the free zones other than the financial free zones.
How many days of annual leave does a UAE worker get?
At least 30 days of paid leave for each year of service. A worker with more than six months but less than a year of service gets 2 days for each month.
How is end-of-service gratuity calculated?
An expatriate full-time worker with at least one year of continuous service gets 21 days' basic wage for each of the first five years and 30 days' basic wage for each later year. The total cannot exceed two years' wage.
What notice period applies after probation?
The contract sets the notice period, which must be at least 30 days and no more than 90 days. The worker is paid in full during notice, and a party that does not give notice owes the other a payment in lieu.
Is there a minimum wage in the UAE?
There is no general minimum wage for the private sector; the law requires wages to meet workers' basic needs. The minimum monthly wage for Emiratis in the private sector is AED 6,000, effective 1 January 2026.
How much does ILOE unemployment insurance cost?
No more than AED 5 a month for a basic salary of up to AED 16,000, and no more than AED 10 a month above that. Investors who own their business, domestic workers, temporary workers, under-18s and some Emirati retirees are excluded.
Sources
Official and primary sources we used for this page, with the date we last opened each one.
- Employment contracts: duration and models in the private sector (updated 12 Aug 2026)
- Terminating employment contracts and arbitrary dismissal (updated 12 Aug 2026)
- Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (English translation, not official), Article 17
- Types of leaves (updated 14 Oct 2026)
- Payment of salaries/wages (updated 14 Oct 2026)
- End of service benefits for workers in the private sector (updated 15 Oct 2026)
- Employing Emiratis in the private sector (updated 15 Oct 2026)
- Insurance against job loss (updated 08 Dec 2025)