Working in the UAE: contracts, salaries and end-of-service gratuity

The contract

All private-sector jobs outside the financial free zones (DIFC, ADGM) are governed by the federal labour law. Since 2022 every contract is fixed-term, usually two or three years, and renewable. Your offer is registered with MOHRE before your work permit is issued, and the final contract must match it.

What a package usually includes

• Basic salary, typically 50–60% of the total
• Housing allowance, paid monthly or in a lump sum
• Transport allowance
• Annual return flight to your home country
• Medical insurance, mandatory in Dubai and Abu Dhabi
• 30 calendar days of annual leave after one year of service

There is no personal income tax, so the gross figure is close to what lands in your account.

Probation and notice

Probation is capped at six months. During probation the employer must give 14 days' notice. If you resign to join another UAE company during probation you must give one month's notice. After probation the notice period in your contract applies, between 30 and 90 days.

End-of-service gratuity

After one year of continuous service you are entitled to gratuity, calculated on your last basic salary:

• 21 days of basic pay for each of the first five years
• 30 days of basic pay for each year beyond five
• Capped at two years' total wage

This is why the split between basic salary and allowances matters when you negotiate.

Working hours and weekends

The standard week is 48 hours, reduced by two hours a day during Ramadan. Federal government and most private companies now work Monday to Friday, with a half day or remote day on Friday.

Changing jobs

You can move to a new employer once your contract ends or with proper notice. The old work permit is cancelled and a new one issued. There is no longer an automatic labour ban for leaving.