As a rapidly developing country, the United Arab Emirates (UAE) has attracted an increasing number of foreign workers seeking employment and a better quality of life. In this country, there are various employment advantages and statutory benefits that employers must be aware of. This article will outline the employment advantages and statutory benefits in the UAE, helping employers gain a better understanding of the country's employment landscape.

I. Employment Advantages

1. High Workforce Mobility:

 The UAE, being a multicultural country, attracts talents from around the world. Foreigners here can obtain long-term residency and work visas, resulting in high workforce mobility. This provides businesses with a diverse pool of talent.

2. Tax Benefits:

 The UAE imposes no personal or corporate income tax, a significant advantage for foreign employees. This means they can earn higher incomes without the burden of income tax.

3. High Salaries:

 The salary levels in the UAE are relatively high, especially in industries such as oil, finance, healthcare, and IT. This serves as a crucialfactor attracting foreign workers.

II. Statutory Benefits

1. Annual Leave:

 According to UAE labor laws, employees are entitled to 30 days of paid annual leave after working continuously for 12 months. If an employee has worked for less than a year, annual leave is calculated proportionally.

2. Sick Leave:

 Employees in the UAE enjoy paid sick leave. If an employee has worked for less than 6 months, they are entitled to 15 days of paid sick leave. For those working for more than 6 months, the entitlement is 30 days of paid sick leave.

3. Maternity Leave:

 Female employees are entitled to paid maternity leave during pregnancy and after childbirth. As per UAE law, female employees can avail themselves of 45 days of paid maternity leave. Additional unpaid maternity leave of up to 100days is available if needed for rest after childbirth.

4. Public Holidays:

 UAE labor laws specify a weekly day off for employees. Typically, this is Friday, but some companies may choose Saturday as the day off.

5. Social Insurance:

 While the UAE does not have a mandatory social insurance system, some companies provide benefits such as medical insurance and retirement plans for employees.

6. End of Service Gratuity:

  Ifa company terminates an employee's contract, they are required to pay an end-of-service gratuity. The amount depends on the employee's duration of service and the reason for termination.

7. Retirement Benefits:

 Although the UAE lacks a mandatory retirement system, some companies offer retirement plans. Typically, companies provide employees with a certain percentage of their salary as a pension or a lump-sum retirement benefit.


The above details encompass the employment advantages and statutory benefits in the UAE. Employers need to understand this information to provide better welfare for their employees and comply with local laws and regulations. Simultaneously, employees should be aware of their rights and benefits to safeguard their legitimate interests."

Overcome Every Global Hiring Challenge With ChaadHR

As part of our Global Employer of Record (EoR) solution, we help companies compliantly hire and pay teams in 160+ countries. Provide accurate, on-time payments to your team through our integrated Global Payroll solution, which consolidates payroll streams into one centralized platform and offers international employees local, ongoing support whenever they need it. By partnering with ChaadHR, you can quickly enter new markets and hire globally without setting up an entity. We handle everything from on boarding and payroll to benefits administration and compliance so you can focus on daily tasks and big-picture goals.