Al the IT professionals, businessmen, freelancers or labors have a dream to go to the United Arab Emirates especially Dubai to pursue their dream career.
However, no one actually knows what is the minimum wage Dubai.
Foreign employers who want to comply with the UAE law also seek the answer for Dubai’s minimum wage. That is why we are here with this detailed article to provide you UAE minimum wage overview, the related regulations, definition of wage, average pattern for wages, and negotiation strategies related to wages in the UAE.
Also we will outline the minimum wage in Dubai, UAE labor law about minimum wage, and how employees can be paid in the UAE in this article.
Keep on reading to know more.
Importance Of Minimum Wage Laws
Knowing the importance of the minimum wage in the UAE is beneficial for both employees and employers. Many of these are:
- Worker protection and living conditions: The minimum wage ensures that workers are fairly remunerated for their work and improves their living standards.
- Economic impact: The minimum wage not only affects individual workers; it has a ripple effect on the economy. Employees who receive an optimal wage can more actively participate in the UAE’s economic growth.
- Recent revisions and commitment: In 2023, the UAE made notable revisions to minimum wage laws, emphasizing the government’s commitment to improving the quality of life for workers. These changes include a significant increase in the minimum wage threshold, reflecting the government’s proactive stance.
What Is The Minimum Wage In UAE?
It’s a right of the employee to be paid according to his or her education, skills and experience. Some jobs come with higher pay scale and some positions with low experience requirement may be less rewarding in terms of salaries.
The job role decides the Dubai minimum wage. however, employers must adhere to the legal terms and conditions while making a job offer to an employee and keep in mind the salary conditions. The figure of AED 1,100 to AED 1,800 should be kept in mind when it comes to minimum wage and salary in the UAE.
Average salaries in the UAE: Profession Wise Classification
The UAE’s economy is booming and that is why workers are pouring in the country throughout the year. That is the reason the salary in the UAE has varied average. However, some examples are:
- Babysitter: AED 1,100.
- Uber: 1,200 dirham.
- Secretary: 4,000 AED.
- Nurse: 6,000 AED.
- Sales Manager: AED 8,000.
- Software Engineer: AED 11,000.
- Human Resources Manager: AED 18,000.
- Executive Director: AED 35,000.
As you can see, unskilled workers are paid less, while managers are usually paid more. When it comes to the minimum wage Dubai, domestic workers undoubtedly earn the lowest wages.
Location Wise Average salaries in the UAE:
Dubai is the most rapidly growing economy among all the seven United Emirates of Arab. The average salary of an employee in Dubai is higher. However, we are listing the estimated average salaries in the UAE by location here:
- Dubai: AED 35,000 ($9,525) per month.
- Abu Dhabi: AED 30,000 ($8,170) per month.
- Sharjah: AED 25,000 ($6,805) per month.
Does The UAE Have A Mandatory Minimum Wage?
No, there is no concept of minimum wage in the UAE and that is why employees and employers need to agree on mutually decided wage. So, there is no variation by occupation or industry. However, there are some jobs with minimum wage Dubai.
In addition, UAE law has not specified a basic salary percentage. However, the law ensures that there must be sufficient amount of wages so that people can meet their basic needs.
What Does The UAE Labour Law State About A Minimum Wage?
UAE labor legislation is the main source of labor legislation. For this reason, employers should check whether there have been any changes to wages or minimum wages in the UAE. The main article covering minimum wages in the UAE is Article 27, which deals with the possible introduction of minimum wage legislation in Dubai. Although, not a single text is there that indicate the minimum wage in the UAE. However, there are some guidelines related to basic salary and employment benefits.
How Can You Pay Employees In The UAE?
Learning how to offer compliant contracts, salaries and benefits can be overwhelming for a foreign business owner. And even if you understand all the aspects, you will still have to process your payrolls, which is a tedious process. There are several regulations you need to follow regarding Dubai’s minimum bid for labor. Here’s a detailed list:
- Payment of wages on the due date: you have to pay your employers on time, as delays in payment will incur a penalty and that would be detrimental to your business.
- WPS System: employers must pay their employees using the Wage Protection System, otherwise they may incur penalties and fines.
What is the Wages Protection System?
Learning how to offer compliant contracts, salaries and benefits can be overwhelming for a foreign business owner. And even if you understand all the aspects, you will still have to process your payrolls, which is a tedious process. There are several regulations you need to follow regarding Dubai’s minimum bid for labor. Here is a detailed list:
- Payment of wages on the due date: you have to pay your employers on time, as delays in payment will incur a penalty and that would be detrimental to your business.
- WPS System: employers must pay their employees using the Wage Protection System, otherwise they may incur penalties and fines.
If the employer does not pay timely, what will happen?
Your payment will count as late or unpaid if you are failed to pay your employees timely. Therefore, adherence to the contract specified payment frequency is necessary to keep fulfilling the legal provisions for paying employees. The payment frequency can be weekly, bi monthly or monthly.
An employee can also register his or her complaint against the employer in MOHRE which may harm the reputation of business. If you have payroll issues, outsourcing is the ultimate solution that you must consider for your problems.
Conclusion
It is not easy to take care of the well-being of employees especially when you are in UAE where the laws are really strict. That is why professionals who are there for your support should be acquired. Like, Emiratisation Hub supports your business through impeccable services and customized solutions. We help businesses and organization get successful in the UAE.
Learn more about the minimum wage in Dubai and relevant topics through our useful insights. Also, you can contact us to know more about us anytime you want.
