Dubai Salary Laws: Your Quick 2025 Guide

Wondering how pay works in Dubai? You’re not alone. Whether you’re an expat looking for a new job or a company setting up shop, the salary rules can feel confusing. The good news is the basics are pretty clear once you break them down.

First off, Dubai follows the UAE Federal Labour Law, but there are a few local twists. The law sets a minimum wage of zero – meaning there’s technically no floor – but most reputable firms stick to market rates to stay competitive. Contracts must spell out the base salary, any overtime, and benefits like health insurance or housing allowance. Anything missing can be a red flag.

How Overtime and Bonuses Are Handled

Overtime is a big topic. If you work over the normal eight‑hour day or 48‑hour week, the law says you should get 125% of your regular rate for the first two extra hours, then 150% after that. Many employers add a fixed overtime allowance instead of calculating hourly, but the amount has to meet the legal minimum.

Bonuses aren’t mandatory unless they’re written into your contract. If they are, they must be paid on schedule – usually at the end of the year or after a project’s completion. Skipping a promised bonus can lead to a claim at the Ministry of Human Resources.

End‑of‑Service Gratuities and Other Benefits

One of the biggest perks in Dubai is the end‑of‑service gratuity. After completing at least one year, you’re entitled to 21 days’ pay for each year of the first five years, then 30 days for each additional year. The calculation uses your basic salary, not allowances.

Other common benefits include housing or transport allowances, annual leave (30 days per year after completing six months), and sick leave (up to 90 days per year, with varying pay levels). Companies can offer more, but they can’t give less than the law requires.

If you’re an employer, make sure your employment contracts cover all these points. Missing details can cause disputes and fines. If you’re an employee, keep a copy of your contract and check that the figures match what’s on your payslip.

Finally, remember that Dubai’s labor landscape changes with new regulations announced regularly. Staying up‑to‑date means checking the Ministry’s website or consulting a local HR expert every few months.

Bottom line: understand your contract, know your overtime rights, and track your gratuity. With that knowledge, you can avoid surprises and make the most of Dubai’s salary system.