Understanding Salaries and Payments for Private Sector Employees in the UAE

Figuring out how you get paid in the UAE can be confusing. Let’s break down everything you need to know about your salary in the UAE, for private sector employees.

Who Pays You and How?

Your boss is responsible for paying your salary. The amount should be clearly spelled out in your employment contract. All payments must be made through a system called the Wages Protection System (WPS). This system ensures you get your money on time and directly deposited into your UAE bank account. The currency you’re paid in can be either UAE Dirham or something else agreed upon in your contract.

When Do You Get Paid?

Your paycheck typically arrives on the first day of the month following your pay period, as defined in your contract. If there’s no specific pay period mentioned, you should get paid at least once a month. If your salary is late by more than 15 days, that’s considered a default by your employer (unless you agreed to a shorter timeframe in your contract).

Minimum Wage?

There isn’t a set minimum wage in the UAE right now. However, the law says your salary should be enough to cover your basic living expenses.

What if I Don’t Get Paid or It’s Late?

If you’re having trouble getting paid on time, you can contact the Ministry of Human Resources and Emiratisation (MoHRE). They can help you file a complaint and get the issue resolved.

End-of-Service Payment (Gratuity)

If you’ve worked for a company for at least a year, you’re entitled to a gratuity payment when you leave. This is a bonus you get for your service.

• 1+ Years of Service: You get 21 days’ salary for each year you worked, up to a maximum of five years.
• 5+ Years of Service: After five years, you get 30 days’ salary for each additional year you worked, on top of the previous calculation. There’s a cap, though. The total gratuity cannot be more than two years’ worth of your salary.

Important Note: The gratuity calculation is different for some employment contracts.