Employer of record in United Arab Emirates | Employee Benefits

Employee Benefits in the United Arab Emirates

Bonuses and additional payments

One of the UAE’s major attractions for professionals from around the world is its lack of income tax, even on bonuses. Bonuses are common for attracting top talent in the UAE, and may be given for signing, performance, project completion, or holidays like Eid Al Fitr and Aid Al Adha.

Annual leave

Employees in the United Arab Emirates are entitled to paid vacation leave after completing six months of employment. The statutory entitlement is 30 calendar days per year after one year of service. This leave is fully paid and can be taken at a time agreed upon between employer and employee.

Additional leave may be offered as part of an employment contract, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention.

Unused statutory leave may be carried over to the following year with employer approval. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

In the United Arab Emirates, personal and sick leave are governed by the UAE Labour Law. Employees are entitled to up to 90 days of sick leave per year after completing the probationary period. The leave is structured as follows: the first 15 days at full pay, the next 30 days at half pay, and the remaining 45 days without pay. Employees must notify their employer within three days of illness and provide a medical certificate from an authorized medical institution to qualify for paid sick leave.

Parental leave

Employers must provide 60 days of maternity leave, typically consisting of 45 days of full pay and 15 days of half pay, for each pregnancy, including adoptive and surrogacy-commissioning mothers. Pregnant employees are eligible for benefits, with written notice and medical documentation required to be submitted to the employer confirming the pregnancy and expected delivery date. Fathers in the UAE are entitled to five working days of fully paid paternity leave, which must be taken within six months after the child’s birth.

Additional benefits

Employers in some emirates in the UAE are required to provide health insurance coverage for employees, and in some cases, their dependents. Many employers also offer supplemental benefits, such as housing allowances, transportation allowances, annual airfare tickets, and education allowances for employees’ children. As your employer of record in the UAE, we help design compliant and competitive benefit packages that align with statutory obligations and local market expectations.