Country guide
Employer of record in the UAE: the real cost in 2026
An employer of record (EOR) employs your worker in the United Arab Emirates for you, and sponsors their work permit and residence visa. You do not need a UAE company. But placing a worker with a client counts as temporary employment, which needs a licence from the Ministry of Human Resources and Emiratisation (MOHRE). Read the section on the agency licence before you choose. In 2026, the all-in EOR cost of a AED 360,000 gross salary in the UAE is AED 389,770 to AED 411,805 a year. This is the salary, the employer costs and the provider fee. See the calculation and its sources.
This guide shows the full yearly cost: the salary, the employer's costs and the provider's fee. Every figure has a source and a check date.
Key facts for 2026
- Employer costs
- No income tax and no social contributions for foreign nationals. The employer builds up the end-of-service gratuity: 21 days of basic wage a year, or 5.83% of the basic wage. For a UAE national, the employer pays 15% of the wage to the pension fund instead.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), UAE Legislation, Federal Decree-Law No. 57 of 2023 (pensions), articles 4 and 5, u.ae, other taxesChecked 21 Oct 2026
- EOR provider fees
- AED 731 to AED 2,567 a month for each employee, in the providers' published prices (RemoFirst to Oyster).RemoFirst pricing, Oyster pricing, European Central Bank, Central Bank of the UAE, exchange ratesChecked 20 Oct 2026
- Minimum wage
- No general minimum wage. For UAE nationals in the private sector, AED 6,000 a month from 1 January 2026.u.ae, payment of wages, u.ae, Emiratis' employment in the private sectorChecked 20 Oct 2026
- Leave
- 30 days of annual leave a year after 1 year of service. Up to 90 days of sick leave a year: 15 days in full and 30 days at half pay.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Ending a job
- A notice period of 30 to 90 days. A foreign worker gets the end-of-service gratuity after 1 year of service.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Agency licence
- Placing a worker with a client counts as temporary employment, which needs a MOHRE licence as a private employment agency. Ask each provider whether its UAE company holds one.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, work permits, MOHRE, licence for temporary employment and mediation agencies (archive copy of 26 Mar 2026)Checked 21 Oct 2026
The cost of an employee in the UAE
Your estimate
The marks matter only for UAE nationals insured from 31 October 2023. Below AED 240,000 a year, the government pays 2.5% of the employer's pension share. At AED 840,000, the pension contribution stops growing.
A foreign national gets the end-of-service gratuity. A UAE national gets the pension instead.
The gratuity uses only the basic wage, without allowances such as housing. Many contracts split the pay, so enter the basic share.
Employer costs, line by line
| Cost | Employer rate | Applies to | Per year | Source |
|---|---|---|---|---|
| End-of-service gratuity, accrued | 21 days of basic wage a year | AED 360,000.00 | AED 21,000.00 | UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, end-of-service benefits in the private sectorChecked 21 Oct 2026 |
| Employer costs | AED 21,000.00 |
Costs that this estimate leaves out
- Health insuranceThe employer pays the health insurance of its employees. In Dubai and Abu Dhabi it is mandatory, and since 2025 it is a condition for the residence permit in every emirate. The price depends on the plan.
- Work permit and residence visaThe employer pays them. The work permit costs AED 250 to AED 3,450 for 2 years, by the category of the employer, and the visa and the Emirates ID add more fees.
- Sick pay and maternity payThe employer pays the wage during sick leave (15 days in full and 30 days at half pay) and maternity leave (45 days in full and 15 days at half pay). The cost depends on the case.
All-in cost with a provider
Each provider's published monthly price for one employee. A "from" price is the lowest price, and the price for one country can be higher. When a provider publishes a price in dirhams, we use it. Ask each provider for a quote.
- Gross salary
- Employer costs
- Provider fee
| Provider | Fee | All-in total per year | Quote |
|---|---|---|---|
| RemoFirstFrom. The fee can vary by country. No set-up fee and no minimum contract term. The UAE guide says that RemoFirst cannot employ C-level roles there.RemoFirst pricingChecked 20 Oct 2026 | US$199 a monthAED 8,769.93 a year | AED 389,769.93 | Get a quote |
| BoundlessFrom. No set-up fee and no minimum commitment. The price can vary by country.Boundless pricingChecked 20 Oct 2026 | US$199 a monthAED 8,769.93 a year | AED 389,769.93 | Get a quote |
| PlayrollFrom. Playroll publishes no price in dirhams. No minimum commitment. A refundable deposit of 1 month's salary.Playroll pricingChecked 20 Oct 2026 | US$399 a monthAED 17,583.93 a year | AED 398,583.93 | Get a quote |
| MultiplierCore plan, with yearly billing. Add-ons that the law requires and an implementation fee can apply.Multiplier pricingChecked 20 Oct 2026 | US$459 a monthAED 20,228.13 a year | AED 401,228.13 | Get a quote |
| Papaya GlobalFrom.Papaya Global pricingChecked 20 Oct 2026 | US$499 a monthAED 21,990.93 a year | AED 402,990.93 | Get a quote |
| SkuadPrice for the UAE. Offers of US$349 with monthly billing and US$299 with a 12-month commitment depend on hiring volume.Skuad UAE pageChecked 20 Oct 2026 | US$499 a monthAED 21,990.93 a year | AED 402,990.93 | Get a quote |
| WorkMotionFrom. WorkMotion publishes no price in dirhams. At least 3 monthly fees for each employee. The deposit is the notice period in months times the monthly employment cost.WorkMotion pricingChecked 20 Oct 2026 | US$549 a monthAED 24,194.43 a year | AED 405,194.43 | Get a quote |
| DeelFrom. Month-to-month pricing. The UAE page also lists an Employer Liability Cost of 0.60% and visa fees case by case, which our totals leave out.Deel pricingChecked 20 Oct 2026 | US$599 a monthAED 26,397.93 a year | AED 407,397.93 | Get a quote |
| RemoteFrom. Price in US dollars. No standard deposit, but Remote can ask for a refundable reserve payment in some cases.Remote pricingChecked 20 Oct 2026 | US$599 a monthAED 26,397.93 a year | AED 407,397.93 | Get a quote |
| G-PFrom. G-P publishes no price in dirhams. Discounts for volume. No minimum contract length.G-P pricingChecked 20 Oct 2026 | US$599 a monthAED 26,397.93 a year | AED 407,397.93 | Get a quote |
| OysterFrom. Oyster publishes no price in dirhams. Discounts for yearly billing. Oyster's help centre says that a fully refundable deposit of about 1 month of the total cost applies.Oyster pricingChecked 20 Oct 2026 | US$699 a monthAED 30,804.93 a year | AED 411,804.93 | Get a quote |
The fees use the ECB reference rates of 30 Sep 2026: €1 = 4.1701 AED, 1.1355 USD. European Central Bank, Central Bank of the UAE, exchange ratesChecked 20 Oct 2026
Assumptions
- The salary is the gross yearly salary in dirhams.
- For a foreign national, the gratuity accrues at 21 days of basic wage for each year, the rate of the first 5 years of service. The law counts a month as 30 days, so this is 5.83% of the basic wage.
- For a UAE national, the employer pays the pension contribution to the GPSSA. The rules of the Abu Dhabi Pension Fund can differ.
- The employee pays the unemployment insurance (ILOE), so it is not an employer cost.
EOR providers in the UAE
Each answer comes from the provider's own website. "Not stated" means that we did not find the answer there. Ask the provider to confirm it before you sign. The licence column asks whether the provider says that it holds a MOHRE licence as a private employment agency. Fees in US dollars or euros convert to dirhams at the fixed rate of AED 3.6725 for 1 US dollar.
| Provider | Published EOR price | MOHRE agency licence | Employs people through | Quote |
|---|---|---|---|---|
| Boundless | US$199 a monthFrom. No set-up fee and no minimum commitment. The price can vary by country.Boundless pricingChecked 20 Oct 2026 | Not statedBoundless UAE guideChecked 20 Oct 2026 | Not statedBoundless UAE guideChecked 20 Oct 2026 | Get a quote |
| Deel | US$599 a monthFrom. Month-to-month pricing. The UAE page also lists an Employer Liability Cost of 0.60% and visa fees case by case, which our totals leave out.Deel pricing, Deel UAE pageChecked 20 Oct 2026 | Not statedDeel blog, EOR in the UAE (30 Jun 2026)Checked 20 Oct 2026 | Own companyDeel blog, EOR in the UAE (30 Jun 2026)Checked 20 Oct 2026 | Get a quote |
| G-P | US$599 a monthFrom. G-P publishes no price in dirhams. Discounts for volume. No minimum contract length.G-P pricingChecked 20 Oct 2026 | Not statedG-P UAE pageChecked 20 Oct 2026 | Not statedG-P UAE pageChecked 20 Oct 2026 | Get a quote |
| Multiplier | US$459 a monthCore plan, with yearly billing. Add-ons that the law requires and an implementation fee can apply.Multiplier pricingChecked 20 Oct 2026 | Not statedMultiplier UAE pageChecked 20 Oct 2026 | Not statedMultiplier UAE pageChecked 20 Oct 2026 | Get a quote |
| Oyster | US$699 a monthFrom. Oyster publishes no price in dirhams. Discounts for yearly billing. Oyster's help centre says that a fully refundable deposit of about 1 month of the total cost applies.Oyster pricing, Oyster help centre, why a deposit is required (9 Apr 2025)Checked 20 Oct 2026 | Not statedOyster library, EORs in the UAEChecked 20 Oct 2026 | Not statedOyster library, EORs in the UAEChecked 20 Oct 2026 | Get a quote |
| Papaya Global | US$499 a monthFrom.Papaya Global pricingChecked 20 Oct 2026 | Not statedPapaya Global UAE pageChecked 20 Oct 2026 | PartnerPapaya Global UAE pageChecked 20 Oct 2026 | Get a quote |
| Playroll | US$399 a monthFrom. Playroll publishes no price in dirhams. No minimum commitment. A refundable deposit of 1 month's salary.Playroll pricing, Playroll UAE pageChecked 20 Oct 2026 | Not statedPlayroll UAE pageChecked 20 Oct 2026 | Not statedPlayroll UAE pageChecked 20 Oct 2026 | Get a quote |
| RemoFirst | US$199 a monthFrom. The fee can vary by country. No set-up fee and no minimum contract term. The UAE guide says that RemoFirst cannot employ C-level roles there.RemoFirst pricing, RemoFirst UAE guideChecked 20 Oct 2026 | Not statedRemoFirst UAE guideChecked 20 Oct 2026 | PartnerRemoFirst pricingChecked 20 Oct 2026 | Get a quote |
| Remote | US$599 a monthFrom. Price in US dollars. No standard deposit, but Remote can ask for a refundable reserve payment in some cases.Remote pricing, Remote UAE pageChecked 20 Oct 2026 | Not statedRemote UAE pageChecked 20 Oct 2026 | Own companyRemote UAE pageChecked 20 Oct 2026 | Get a quote |
| Rippling | Quote onlyRippling sends a custom quote.Rippling pricingChecked 20 Oct 2026 | Not statedRippling UAE pageChecked 20 Oct 2026 | Not statedRippling UAE pageChecked 20 Oct 2026 | Get a quote |
| Skuad | US$499 a monthPrice for the UAE. Offers of US$349 with monthly billing and US$299 with a 12-month commitment depend on hiring volume.Skuad UAE pageChecked 20 Oct 2026 | Not statedSkuad UAE pageChecked 20 Oct 2026 | Not statedSkuad UAE pageChecked 20 Oct 2026 | Get a quote |
| WorkMotion | US$549 a monthFrom. WorkMotion publishes no price in dirhams. At least 3 monthly fees for each employee. The deposit is the notice period in months times the monthly employment cost.WorkMotion pricing, WorkMotion terms (PDF)Checked 20 Oct 2026 | Not statedWorkMotion UAE pageChecked 20 Oct 2026 | Not statedWorkMotion UAE pageChecked 20 Oct 2026 | Get a quote |
Compare the deposits, set-up fees and other costs of each provider.
EOR, own company or contractor?
There are three ways to work with someone in the UAE. Each one fits a different case.
- Employer of record
- The EOR's UAE company employs the person, holds the work permit and sponsors the residence visa. You need no UAE company. But the rules on temporary employment apply (see the next section).UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, work permitsChecked 21 Oct 2026
- Your own UAE company
- A work permit lets a person work only for the licensed company that holds it. So to employ someone yourself, you need a licensed company in the UAE, on the mainland or in a free zone. In a free zone, the free zone authority sponsors the employees.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, working in free zonesChecked 21 Oct 2026
- Contractor
- The Labour Law defines a worker as a person who works under the supervision and direction of the employer. A self-employed person in the UAE needs a freelance work permit or a licence of their own.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, work permitsChecked 21 Oct 2026
Compare an EOR with a PEO, your own company and a contractor.
Temporary employment: the MOHRE agency licence
An EOR is the legal employer, but the person works for you. In the UAE, the work permit ties a worker to one company, so this needs care.
- One permit, one employer
- A work permit lets a person work for the licensed company that holds it. The employer must not let the worker work for others, except as the law allows.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- A licence for employment agencies
- No one may recruit or employ workers as an activity, or act as an intermediary, without a licence from MOHRE. A licence for an employment agency costs AED 50,000 to issue and AED 25,000 to renew each year.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, work permitsChecked 21 Oct 2026
- Temporary employment and outsourcing
- MOHRE licenses temporary employment agencies, which employ a worker to place them with a third party. Such an agency must give MOHRE a bank guarantee of at least AED 1 million.MOHRE, licence for temporary employment and mediation agencies (archive copy of 26 Mar 2026)Checked 21 Oct 2026
- Employers of record
- No UAE law names employers of record. An EOR places its employee with a client, which matches the activity of a temporary employment agency. Whether a given service needs the licence depends on its facts.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), MOHRE, licence for temporary employment and mediation agencies (archive copy of 26 Mar 2026)Checked 21 Oct 2026
No provider in our table names a MOHRE agency licence on its pages. Deel says that its UAE company is fully licensed, without naming the licence. RemoFirst says that its model in the UAE does not support C-level roles.
Ask each provider these questions before you sign:
- Does your UAE company, or your partner, hold a MOHRE licence for temporary employment and outsourcing? Can we see it?
- If you employ through a free zone company, which free zone is it, and may its staff work for a client outside it?
- Who pays the work permit, the visa and the health insurance, and are they in your fee?
These rules are complex. Ask a UAE employment lawyer how they apply to your case.
Compare an EOR with a staffing agency.
Sources: Deel blog, EOR in the UAE (30 Jun 2026), RemoFirst UAE guideChecked 20 Oct 2026
Employment rules
- Written contract
- The employer and the worker sign a written contract for a set period, which they can renew. The law sets no maximum period. The employer registers the contract with MOHRE within 14 days of the worker's arrival.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, job offers and the employment processChecked 21 Oct 2026
- Working hours
- At most 8 hours a day or 48 hours a week. Overtime pays at least 25% more than the basic wage, and 50% more between 10 pm and 4 am.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Annual leave
- 30 days for each year of service, and 2 days a month after 6 months of service in the first year.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Public holidays
- The Cabinet sets the public holidays, with full pay. They include New Year's Day, Eid Al Fitr, Arafah Day, Eid Al Adha, the Hijri New Year, the Prophet's birthday and National Day.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, public holidaysChecked 21 Oct 2026
- Probation
- At most 6 months. During probation, the employer can end the job with at least 14 days of written notice.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Notice period
- Either party can end the contract with written notice of 30 to 90 days, as the contract sets. The worker gets the full wage for the notice period.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- End-of-service gratuity
- A foreign worker with 1 year or more of service gets the basic wage of 21 days for each of the first 5 years, and of 30 days for each year after that. The total is at most 2 years' wage. A UAE national gets the pension instead.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, end-of-service benefits in the private sectorChecked 21 Oct 2026
- Sick leave
- After probation, up to 90 days a year: the first 15 days with full pay, the next 30 days with half pay, and the rest unpaid.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Maternity and parental leave
- 60 days of maternity leave: 45 days with full pay and 15 days with half pay. Each parent also gets 5 working days of paid parental leave within 6 months of the birth.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law)Checked 21 Oct 2026
- Minimum wage
- The Labour Law sets no general minimum wage. For UAE nationals in the private sector, the minimum is AED 6,000 a month from 1 January 2026.u.ae, payment of wages, u.ae, Emiratis' employment in the private sectorChecked 20 Oct 2026
Payroll and taxes
The UAE levies no income tax on individuals, so the employer, or the EOR, withholds no tax from the salary. It pays the salary through the Wage Protection System (WPS), by the first day of the next month.
For a UAE national, the employer registers the worker with the pension fund (GPSSA) and pays 15% of the contract wage, from AED 3,000 to AED 70,000 a month. The government pays 2.5% of this for a wage below AED 20,000 a month. Nationals insured before 31 October 2023 stay at 12.5%.
The worker pays the unemployment insurance (ILOE) premium, of AED 5 or AED 10 a month by the basic wage.
Read how payroll works through an EOR.
Sources: u.ae, other taxes, u.ae, payment of wages, UAE Legislation, Federal Decree-Law No. 57 of 2023 (pensions), articles 4 and 5, u.ae, pensions and social security for UAE citizens, u.ae, Emiratis' employment in the private sector, u.ae, insurance against job lossChecked 21 Oct 2026
Payroll in the UAE: an EOR or a local payroll company?
A local payroll company calculates and pays the salaries, but it does not employ the person. In the UAE, a worker needs a work permit from a licensed company, so a payroll company alone does not let a foreign company hire there.
- A licensed company
- No one may work in the UAE without a work permit, and the permit ties the worker to a licensed company. Your company needs a UAE trade licence on the mainland or in a free zone.UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, work permitsChecked 21 Oct 2026
- Free zones
- Free zone companies follow the rules of their free zone authority, which also sponsors their employees.u.ae, working in free zonesChecked 20 Oct 2026
- The Wage Protection System
- A company registered with MOHRE pays all salaries through the WPS, by the first day of the next month.u.ae, payment of wagesChecked 20 Oct 2026
So in the UAE, your company needs its own licensed company to employ someone, and a payroll company can then run the payroll. Without one, an EOR is the usual way. Ask a tax adviser if an employee in the UAE creates a taxable presence (a permanent establishment) for your company.
Read how staff abroad can create a permanent establishment.
Sources: UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, work permits, u.ae, working in free zones, u.ae, payment of wagesChecked 21 Oct 2026
Benefits
The law requires the end-of-service gratuity for foreign workers, the pension contribution for UAE nationals, 30 days of annual leave, and paid sick and maternity leave. The employer also pays the health insurance: it is mandatory in Dubai and Abu Dhabi, and since 2025 it is a condition for the residence permit in every emirate.
The employer provides housing, or pays a housing allowance, or includes it in the wage. Many contracts split the pay into a basic wage and allowances. The gratuity uses only the basic wage.
Read what an EOR gives you and your staff.
Sources: UAE Legislation, Federal Decree-Law No. 33 of 2021 (Labour Law), u.ae, getting a health insurance, u.ae, end-of-service benefits in the private sectorChecked 21 Oct 2026
How hiring through an EOR works
- Compare providers and ask for quotesAsk for the monthly fee in the UAE, the deposit, the visa and health insurance costs, and the notice period of the EOR contract. Ask whether the provider holds a MOHRE agency licence.
- Agree the employment termsAgree the yearly salary, the split between the basic wage and the allowances, the start date, the leave and the probation period with the candidate.
- The EOR gets the permitsThe EOR becomes the legal employer. It applies for the work permit and the residence visa, and it registers the contract with MOHRE.
- The EOR runs the payrollEach month, the EOR pays the salary through the WPS. For a UAE national, it also pays the pension contributions.
- You manage the daily workYou set the tasks and the goals. The EOR handles the employment administration.
Read how to check an EOR provider before you sign.
Read which terms to check in an EOR contract.
Sources: u.ae, work permits, u.ae, job offers and the employment process, u.ae, payment of wagesChecked 20 Oct 2026
Questions and answers
How much does an employer of record cost in the UAE?
At a gross salary of AED 360,000, the employer costs on top of the salary are AED 21,000 a year. With the published provider fees, the all-in cost is between AED 389,770 (RemoFirst) and AED 411,805 (Oyster) a year, at the ECB rate of 30 Sep 2026. Prices for one country can differ, so ask for a quote.
Is an employer of record legal in the UAE?
UAE law does not name EORs. Placing a worker with a client matches the activity of a temporary employment agency, which needs a MOHRE licence. No provider in our table names this licence on its pages. Ask each provider which licence its UAE company holds, and ask a UAE lawyer.
Do I need a UAE company to hire someone there?
To employ the person yourself, yes: a work permit ties the worker to a licensed company in the UAE, on the mainland or in a free zone. Without one, an EOR employs the person and sponsors the visa for you.
Is there income tax on salaries in the UAE?
No. The UAE levies no income tax on individuals. Foreign nationals also pay no social contributions. UAE nationals insured from 31 October 2023 pay 11% of their wage to the pension fund.
How much is the end-of-service gratuity?
For a foreign worker with 1 year or more of service: the basic wage of 21 days for each of the first 5 years, and of 30 days for each year after that, up to 2 years' wage. For the first 5 years, this is 5.83% of the basic wage each year.
What is the minimum wage in the UAE?
There is no general minimum wage. For UAE nationals in the private sector, the minimum is AED 6,000 a month from 1 January 2026.
Which costs does this page leave out?
Health insurance, because its price depends on the plan. The work permit, the residence visa and the Emirates ID, because they depend on the employer and the emirate. Sick pay and maternity pay, because they depend on the case.
When do these figures change?
No change to the gratuity or to the pension rates is scheduled for 2027. We check the figures again in late December 2026, and we update this page when a rule changes.
Change log
- We published this guide with the 2026 figures.
Warning: This page is not legal or tax advice. The figures come from official sources, but your case can be different. Check them with a payroll expert before you hire.