Offer Letter
The MOHRE offer letter is prepared and sent to the employee to sign. The signed letter goes back to the Ministry, which issues the work permit pre-approval.
EOR for the UAE & wider MENA
Employer of Record in the United Arab Emirates
EOR services in the UAE, plus regional coverage across the GCC and wider MENA. One UAE agreement, one account team, one regional relationship.
Last reviewed
The short answer
A company can employ staff in the United Arab Emirates without setting up a local entity by using an Employer of Record, which holds the work permit, sponsors the residence visa and pays salaries through the Wage Protection System at establishments registered with MOHRE.
Federal Decree-Law No. 33 of 2021 governs UAE employment on the mainland and in the non-financial free zones, where the zone authority handles permits, visas and contract filing. The DIFC and ADGM sit outside it under their own legislation. Which regime applies decides notice, end-of-service and Emiratisation exposure.
Typical end-to-end deployment is five to six weeks, or about four weeks where express services are used.
Aspirock provides Employer of Record services across the United Arab Emirates, covering work permit and residence visa sponsorship, Wage Protection System payroll and Emiratisation compliance.
Why it is different here
Why does UAE employment need specialist handling?
The UAE's employment landscape has undergone significant reform since 2021. Three structural factors shape every deployment and must be navigated correctly from day one.
Federal Decree-Law No. 33 of 2021
The UAE’s current employment framework replaced the 1980 labour law and was further amended by Federal Decree-Law No. 9 of 2024. It governs all private sector employment, including contract types, notice periods, working hours, and dispute resolution. Penalties for serious violations now reach AED 1,000,000.
Mainland vs Free Zone
Federal Decree-Law No. 33 of 2021 governs the mainland and the non-financial free zones. Mainland employment is administered by MOHRE and carries Emiratisation quotas and WPS requirements. Free zones are administered by their own authorities. DIFC and ADGM have entirely separate employment legislation. The entity type determines which compliance regime applies to your employees.
Emiratisation & MOHRE
Private sector companies with 50 or more employees must increase Emirati representation in skilled roles by 2% annually, targeting 10% by end of 2026. Companies with 20 to 49 employees in targeted sectors also face quotas. Each unfilled position carries a monthly contribution of AED 9,000 in 2026, up from an AED 6,000 base in 2023, or AED 108,000 across a year.
2026 compliance changes affecting UAE employers.
From 1 June 2026, wages at establishments registered with MOHRE must be paid by the 1st of each Gregorian month under Ministerial Resolution No. 340 of 2026. Emiratisation targets reach 10% of skilled roles for mainland establishments with 50 or more employees by the end of 2026. Each unfilled skilled position carries a monthly contribution of AED 9,000 in 2026, charged from the month after a missed checkpoint. Labour law penalties under Federal Decree-Law 33 of 2021 range up to AED 1 million per violation, multiplied by the number of affected workers up to an aggregate ceiling of AED 10 million.
Worth knowing
Three things that catch employers out in the UAE
In the DIFC there is no end-of-service gratuity
Mainland end of service accrues at 21 days' basic salary per year for the first five years and 30 days thereafter. Inside the DIFC that rule does not apply: end of service runs through the DIFC Employee Workplace Savings scheme, a defined-contribution plan at 5.83% or 8.33% of basic salary paid monthly, vesting from day one with no one-year qualifying period. Moving a role from mainland Dubai into the DIFC changes the regime and the cost profile.
The Emiratisation charge is monthly, per position and rises every year
Private sector establishments with 50 or more employees pay AED 9,000 per month in 2026 for each skilled position not filled by an Emirati. The charge started at AED 6,000 in 2023 and has risen by AED 1,000 each year to 2026. Being three positions short of target costs AED 27,000 a month. The AED 108,000 figure is the annual equivalent and separately the January 2026 lump charge for firms with 20 to 49 staff in 14 designated sectors.
Since 1 June 2026 UAE payroll runs on a daily enforcement clock
Ministerial Resolution No. 340 of 2026, in force 1 June 2026, made the 1st of each Gregorian month the due date for the previous month's wages and abolished the 15-day grace period. Enforcement escalates from a day 2 notification to a day 5 freeze on new work permits, day 11 administrative fines, day 16 collective dispute registration where 25 or more workers are affected, applied on a risk-based basis weighted to labour-intensive sectors and day 21 asset attachment. An establishment is compliant at 85% of wages paid on time.
How UAE deployment works
Two scenarios, depending on where your hire is starting from. The shared phases are the same; the visa pathway diverges. Typical end-to-end timeline is 5 to 6 weeks.
E-Visa Issuance & Arrival into the UAE
Pre-approval releases the entry permit. The employee travels in on the e-visa and should carry a printed copy, which is still asked for at the border.
Medical Fitness Test
A fitness test at a centre approved by the Dubai Health Authority. The result is one of three documents the residency application waits on.
Emirates ID Application & Health Insurance
Emirates ID application is typed. For first-time applicants, biometrics are required at an Emirates ID center in the UAE. Health insurance is applied for after the medical test and EID application are completed.
Residency Approval
Residency is applied for once three things are in hand: the medical result, the stamped Emirates ID application and the health insurance certificate.
Emirates ID Issuance
The physical Emirates ID is produced once residency has been granted.
Offer Letter
The MOHRE offer letter is prepared and sent to the employee to sign. The signed letter goes back to the Ministry, which issues the work permit pre-approval.
E-Visa Issuance & Visa Status Change
Pre-approval releases the e-visa. The employee's status is converted to an employment visa without leaving the country, from either a visit visa or a cancelled one.
Medical Fitness Test
A fitness test at a centre approved by the Dubai Health Authority. The result is one of three documents the residency application waits on.
Emirates ID Application & Health Insurance
Emirates ID application is typed. For first-time applicants, biometrics are required at an Emirates ID center in the UAE. Health insurance is applied for after the medical test and EID application are completed.
Residency Approval
Residency is applied for once three things are in hand: the medical result, the stamped Emirates ID application and the health insurance certificate.
Emirates ID Issuance
The physical Emirates ID is produced once residency has been granted.
WPS payroll activated
·Deployment complete.
Local bank account opened, salary payments scheduled in line with Ministerial Resolution 340 of 2026 and ongoing payroll, statutory filings and HR support handed to your account team.
About 4 weeks
Express services at the medical and residency stages
5 to 6 weeks
Typical deployment
7 to 10 weeks
Complex cases, specific nationalities
Scope of service
What does an EOR handle in the UAE?
Aspirock manages UAE employment end to end, from work permit and residence visa through payroll and end-of-service administration.
Work Permits & Emirates ID Processing
Full work permit application through MOHRE, entry visa issuance, Emirates ID registration, and medical examination coordination, managed end to end.
Wage Protection System (WPS) Payroll
All salaries processed through the government Wage Protection System within the required window. Non-compliance directly affects the ability to issue or renew work permits.
Mainland & Free Zone Employment
Employment contracts drafted and registered through MOHRE for mainland employees, or through the relevant free zone authority. Contract structure aligned with Federal Decree-Law No. 33 of 2021.
Emiratisation Compliance Management
Quota tracking, skilled role classification under MOHRE definitions, and proactive alignment with annual Emiratisation targets, so quota exposure is managed by the employing entity rather than carried by the client.
GPSSA Contributions for Emirati Nationals
Registration and monthly contributions to the General Pension and Social Security Authority for UAE national employees. GPSSA contributions are split between employer, employee, and (where applicable) a government subsidy.
End-of-Service Gratuity Administration
Gratuity calculated on basic salary: 21 calendar days per year for the first five years, 30 days per year thereafter, capped at two years’ wage. All statutory leave entitlements managed directly.
Can you hire in the UAE without setting up a company?
Yes. An Employer of Record employs staff in the United Arab Emirates on a company's behalf, which removes the trade licence, the office lease and the MOHRE establishment card from the path to a first hire. The EOR holds the work permit, sponsors the residence visa, issues a contract under the applicable employment regime and pays salaries through the Wage Protection System. The client directs the work; the EOR carries the employment obligations.
That distinction carries weight in the UAE, because the employing entity decides which employment law applies. Mainland employment sits under Federal Decree-Law No. 33 of 2021 and MOHRE, with Emiratisation quotas and WPS in scope. Federal Decree-Law No. 33 of 2021 also governs employment in the non-financial free zones, where the zone authority handles permits, visas and contract filing. The Dubai International Financial Centre and Abu Dhabi Global Market operate separate employment legislation entirely and the DIFC funds end of service through a savings scheme rather than an accrued gratuity. Notice, gratuity and quota exposure all move depending on which of these applies.
What changed for UAE employers in 2026?
Three changes reset the compliance baseline for UAE employers in 2026.
Wage timing is now continuous. Ministerial Resolution No. 340 of 2026 took effect on 1 June 2026, making the 1st of each Gregorian month the due date for the previous month's wages and abolishing the former 15-day grace period. Enforcement escalates on a fixed clock: a notification on day 2, a freeze on new work permits on day 5, administrative fines on day 11, collective dispute registration on day 16 where 25 or more workers are affected, applied on a risk-based basis weighted to labour-intensive sectors, and asset attachment with possible criminal exposure on day 21. An establishment is treated as compliant where at least 85% of total wages are paid on time and each employee receives at least 85% of salary, subject to lawful deductions.
Emiratisation reaches its headline target. Mainland establishments with 50 or more employees must hold 10% Emirati representation in skilled roles by the end of 2026, having risen two percentage points a year, with a 9% checkpoint at 30 June 2026. The monthly contribution for each unfilled position is AED 9,000 in 2026, up from an AED 6,000 base in 2023. Separately, firms with 20 to 49 employees across 14 designated sectors face annual charges, which reached AED 108,000 in January 2026.
Emirati pay has a floor. From 1 January 2026 the minimum wage for Emiratis in the private sector is AED 6,000 per month, applied to new, renewed and amended work permits. Existing staff were to be adjusted by 30 June 2026 and from 1 July 2026 non-compliance suspends new work permit issuance and stops underpaid Emiratis counting toward the quota.
Behind all three sits the penalty regime under Federal Decree-Law No. 33 of 2021, which reaches AED 1,000,000 per violation, multiplied by the number of affected workers, to an aggregate ceiling of AED 10,000,000.
What does an employer actually pay for in the UAE?
The main statutory lines for an expatriate hire in the United Arab Emirates are salary, mandatory health insurance, end-of-service gratuity accrual and visa and work permit costs. There is no employer social insurance contribution for expatriate staff and no personal income tax on salary.
For UAE nationals the picture changes. GPSSA pension contributions apply at 15% employer against 11% employee for anyone enrolled from 31 October 2023, with the government paying 2.5 percentage points out of the employer's 15% where the contribution account salary is under AED 20,000. Anyone enrolled before that date remains on the earlier scheme at 20% total, with a 12.5% employer share. Pensionable salary is capped at AED 70,000 per month and Emiratis working in Abu Dhabi fall under the Abu Dhabi Pension Fund instead.
Unemployment insurance is the one line most cost models miss, because it is paid by the employee rather than the employer: AED 5 a month where basic salary is up to AED 16,000 and AED 10 a month above that. The consequence still lands on the employment relationship, since unresolved liabilities block work permit and visa transactions, so enrolment belongs in the onboarding sequence rather than in the employee's own hands.
A full breakdown, including the gratuity mechanics and the DIFC exception, sits on the UAE employer cost page.
Reference
What are the key employment terms in the UAE?
The provider
About Aspirock
Aspirock provides Employer of Record services across the UAE and the wider MENA region, with operations anchored from a Dubai office, covering work permit and residence visa sponsorship, payroll through the Wage Protection System, GPSSA contributions for Emirati nationals, and Emiratisation compliance. A named account team owns the deployment end to end and is accountable for it. Saudi Arabia is contracted separately through Aspirock Arabia, which holds Platinum Nitaqat status and operates from a Riyadh office. A single account team coordinates clients across both contracting structures.
Common questions
Frequently Asked Questions
Last reviewed
Yes. Aspirock's UAE entity acts as the single contracting party for clients deploying staff across the GCC and the wider MENA region. A single account team coordinates onboarding, payroll, compliance and ongoing employment management across all in-scope markets, with unified billing and consolidated monthly reporting. This removes the overhead of contracting separately in each market, where every country brings its own agreement, account manager and reporting cycle.
EOR pricing in the UAE is per-employee per-month, structured around the employee's profile, the operational requirements of each deployment and whether the role sits on mainland or in a free zone. Pricing is provided after a short discovery call where the role, location and deployment timeline are confirmed. There are no setup fees and no long-term lock-in. For a tailored quote, request a UAE deployment plan.
No trade licence, no office lease and no MOHRE establishment card. Those requirements sit with the employing entity rather than with the client. The client provides the role, the package, the candidate and the start date, then directs the work day to day. Aspirock runs the UAE deployment from that point, covering MOHRE work permit and Emirates ID processing, residence visa sponsorship, Wage Protection System payroll and Emiratisation compliance.
It changes notice, end of service and Emiratisation exposure, so it is settled before the offer. Mainland employment runs under Federal Decree-Law No. 33 of 2021 and is administered by MOHRE, with Emiratisation quotas and the Wage Protection System. Free zone employment runs under each zone's own authority. The DIFC and ADGM sit outside that legislation entirely: in the DIFC there is no end-of-service gratuity. The DIFC Employee Workplace Savings scheme takes its place at 5.83% or 8.33% of basic salary paid monthly. Aspirock confirms which regime applies before an offer is issued.
Emiratisation is an obligation of the legal employer, measured at the level of the employing entity. When an EOR is the legal employer, the target, the skilled-headcount calculation and any monthly contribution sit on the EOR's establishment file rather than the client's. A company with no UAE establishment of its own carries no target in its own name. The obligation is not free: the cost of meeting it forms part of UAE employer-of-record pricing. Aspirock manages Emiratisation compliance as part of the UAE employment structure.
General guidance on the UAE employment rules, reviewed 2 August 2026. Rates and rules change. This is not legal or tax advice for a specific situation.
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