Can I run payroll in United Arab Emirates without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under United Arab Emirates labor law and runs local payroll, no entity required.

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Payroll in United Arab Emirates

Payroll in United Arab Emirates runs in AED (United Arab Emirates dirham). Payroll is run monthly and must be processed through the Wage Protection System (WPS) for most private-sector employees. No statutory 13th-month bonus is mandated; end-of-service gratuity functions as the primary mandatory end-of-employment payment. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a United Arab Emirates payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

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).

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.

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

Get a payroll quote for United Arab Emirates

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your United Arab Emirates hiring plan

Send the role, a selected worker or an existing-team requirement in United Arab Emirates. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.

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Deeper guide

Hiring guide: United Arab Emirates →

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