KEY STATUTORY & RESEARCH BENCHMARKS
Typical UAE EOR Platform Fee
$300–$700 / employee / month
Flat monthly fee covering MOHRE contract filing and WPS payroll
Personal Income & Payroll Tax
0% (Zero statutory income tax)
No personal income tax or general employer payroll tax in the UAE
End of Service Gratuity (EOSG)
21 days basic wage / year of service
Statutory severance accrual for first 5 years; 30 days/yr thereafter (capped at 2 years total salary)
Residency Visa & Work Permit Setup
$2,500–$5,000 (one-time)
Covers medical fitness, Emirates ID, entry permit, and MOHRE labor card
1. UAE EOR Commercial Structure
The United Arab Emirates is an increasingly popular hub for international executive talent due to its 0% personal income tax regime and strategic geographic location. Hiring through an EOR in the UAE eliminates the overhead of setting up a mainland LLC or Free Zone entity.
2. Key Cost Elements for UAE Employment
- 0% Statutory Payroll Tax: No federal personal income tax or state payroll tax is levied on expatriate employee salaries.
- End of Service Gratuity (EOSG): Statutory severance accrual of 21 days basic salary for each completed year of service (for the first 5 years) and 30 days per year thereafter.
- Mandatory Health Insurance: Statutory requirement in Dubai and Abu Dhabi, averaging AED 1,500 to AED 6,000 annually per employee.
- Wages Protection System (WPS): Mandatory electronic salary transfer through approved UAE central bank channels.
Employment Rules & Compliance: For UAE Labour Law (Federal Decree-Law No. 33), MOHRE contract registration, probation terms, and termination rules, see our UAE Hiring & Employment Guide.
Jurisdiction Limitations & Considerations:
- Mandatory employer private health insurance is statutory in Dubai (DHA) and Abu Dhabi (DoH).
- Expatriate workers are exempt from statutory pension but must be enrolled in the statutory End of Service Gratuity (or qualifying workplace savings scheme).
Research Sources & Citations
Methodology v1.0 →This guide is corroborated against the following structured sources:
Ministry of Human Resources and Emiratisation (MOHRE) — UAE Labour Law ↗
UAE Federal Government (MOHRE) · National Labor Ministry · Accessed 2026-10-16
Claim verified: "End of Service Gratuity calculation formulas under Federal Decree-Law No. 33 of 2021 and mandatory Wages Protection System (WPS)"
Tier 1
General Pension and Social Security Authority (GPSSA) — Pension Mandates ↗
GPSSA UAE · National Pension Authority · Accessed 2026-10-16
Claim verified: "Statutory pension contributions apply exclusively to UAE and GCC national employees (expatriates exempt)"
Tier 1
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