Payroll in United Arab Emirates runs in AED on a payroll is run monthly and must be processed through the wage protection system (wps) for most private-sector employees. cycle, with statutory employer contributions and no statutory 13th-month bonus is mandated; end-of-service gratuity functions as the primary mandatory end-of-employment payment.. Gracemark operates it end-to-end, humans, not tickets.
Currency
AED, United Arab Emirates dirham
Payroll cycle
Payroll is run monthly and must be processed through the Wage Protection System (WPS) for most private-sector employees.
Working week
Federal Decree-Law No. 33 of 2021 sets standard working hours at 8 hours per day / 48 hours per week (reduced during Ramadan), with overtime paid at a minimum of 125% (150% for night hours) [1](https://mohre.gov.ae/assets/download/9ade07/Federal%20Decree-Law%20No.%2033%20of%202021%20Regarding%20the%20Regulation%20of%20Employment%20Relationship%20and%20its%20amendments.pdf.aspx).
Minimum wage
The UAE does not set a general private-sector statutory minimum wage; the labour law instead prescribes minimum-wage-adjacent worker protections through the WPS and sector agreements.
13th-month
No statutory 13th-month bonus is mandated; end-of-service gratuity functions as the primary mandatory end-of-employment payment.
Employer cost
There are no broad-based mandatory social security employer contributions for expatriate staff; UAE and GCC national employees are covered by pension contributions under separate national pension laws (around 12.5% employer share for UAE nationals).
Probation
Probationary periods are capped at six months under Federal Decree-Law No. 33 of 2021, with specific notice requirements for termination during probation.
Notice period
Notice periods range from 30 to 90 days depending on contract terms; end-of-service gratuity is mandatory for employees completing at least one year of service, calculated as 21 days' basic wage per year for the first five years and 30 days per year thereafter [1](https://mohre.gov.ae/assets/download/9ade07/Federal%20Decree-Law%20No.%2033%20of%202021%20Regarding%20the%20Regulation%20of%20Employment%20Relationship%20and%20its%20amendments.pdf.aspx).
Two ways to run payroll in United Arab Emirates
Own-entity payroll
For long-term presence in United Arab Emirates. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Asia time.
EOR-run payroll
No entity in United Arab Emirates? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 1–3 weeks, no local incorporation.
Compliance essentials in United Arab Emirates
End-of-service gratuity replaces a pension for most expats
Wages Protection System (WPS) governs salary payments
Visa and work-permit sponsorship is central to hiring
No income tax is a strong talent-attraction lever
Free-zone vs mainland choice shapes the setup
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