Hiring and paying in the UAE

End-of-service liability

Every employee accrues a statutory end-of-service entitlement from day one, growing with tenure: 21 days of basic pay per year for the first five years, 30 days per year after, capped at two years' basic salary under Federal Decree-Law 33 of 2021. It is a real, growing provision on the balance sheet, not a cost that appears only at exit. Size it per role with the employer EOS-liability calculator rather than estimating.

Employer social-insurance contribution

Social-security contributions in the UAE apply to Emirati hires only, through the national pension scheme. Expatriate salaries carry no employer social-security contribution, so for most hires the cash package is close to the loaded cost. An Emirati hire carries an employer contribution on top of salary that an expatriate hire does not, so it belongs in the budget for any national role.

Quota-driven premium

Where an Emirati hire is required to meet Emiratisation targets (see below), national talent at the scarcer grades commands a premium. A role you could fill at one number with an expatriate candidate can cost meaningfully more as an Emirati hire. Size that premium against the market pay table above before you open the role, not after the offer.

Wage protection and payroll

The Wage Protection System requires salaries to be paid in full and on time through approved channels. Late or out-of-channel payroll is a compliance exposure, not just an administrative matter, so the cost of running compliant payroll belongs in the hiring budget alongside the salary.