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Nov 20, 2024 · Understand UAE Labour Law updates: wages, benefits, working hours, contracts, and dispute resolution. Stay informed to protect your rights and ensure workplace fairness and security.
13th month pay is typically exempt from taxation. However, larger payments that may exceed one-twelfth of an employee’s basic salary could be taxed as normal. There is a misconception that 13th month pay is the same as a Christmas bonus that is common in many countries.
Unlike some countries, there is no mandatory 13th-month salary payment in the UAE. Any bonuses or additional payments are at the discretion of the employer and depend on company policy or contractual agreements.
Jul 29, 2025 · Payroll Payroll Cycle The payroll cycle in UAE is generally monthly, with payment made on the last working day. 13th Salary There is no requirement for a 13th-month salary payment in the United Arab Emirates.
Feb 26, 2024 · When should employers pay salaries? The employee's wages are due from the first day of the month following the expiry of the period for which the wages are specified in the employment contract. If the period is not specified in the employment contract, the employee must be paid at least once a month.
Companies, institutions, establishments or any other entities wholly owned by individuals or in partnership with federal or : local government, companies and institutions wholly owned by the federal or local government, unless the laws of their establishment stipulate that they shall be subject to the provisions of another law.
The Middle East Performance-based bonuses are on the rise in the Middle East where 13th and 14th-month salaries are traditionally uncommon. Here are two countries that customarily pay 13th and 14th-month salaries in the Middle East! Saudi Arabia Though not legally required, a 13th month salary is commonly paid to employees on Eid al-Fitr in Saudi Arabia. United Arab …
Employment laws and regulations Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments, known as the ‘UAE Labour law’, governs the labour rights of employees in the private sector. It applies to all employees working in the UAE, whether UAE nationals or expatriates. However, there are certain categories of employees …
Learn more about the basic salary in UAE labour law, its definition, percentage, rules for 2025, and more details. Consult our labor lawyer for help..
Dubai employers do not give 13th- month cheques or annual increases as is the case in countries where minimum wage laws exist. What makes up a basic salary/compensation package in Dubai and the UAE?
May 23, 2025 · 13th Month Salary: Common among multinationals and DIFC-based employers as a year-end retention bonus. Education Allowances: Support expatriate families with international schooling costs, often up to AED 50,000 per child annually. Life Insurance: Emerging as a differentiator in benefits packages, often bundled with healthcare.
Aug 8, 2024 · Wages According to the UAE Labor Law, wages comprise any form of compensation provided to an employee, whether in cash or in-kind, in exchange for services rendered under an employment contract. This includes the basic salary, allowances, and any other benefits outlined in the employment contract. This blog is a part of our Understanding the …
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