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Salaries and bonuses of employees in Dubai, UAE

Salaries and bonuses of employees in Dubai, UAE - Makebiz

The United Arab Emirates attracts many entrepreneurs from all over the world due to its strategic location, favorable tax climate and high standard of living. In recent years, the country has become one of the most popular destinations for qualified professionals from around the world. Therefore, before starting a business here, it is important to carefully assess the costs associated with employment and maintenance of employees. Let’s take a closer look at the main components of salaries and bonuses for employees in the UAE

One of the main points to consider when starting a business in the region is compliance with labor laws. The government of the country actively monitors that employers do not use «gray» schemes, such as the payment of a PO «in an envelope». This means that all of them must be transparent and documented. Employers are obligated to specify the base salary and all benefits offered in the employment contract, which creates additional responsibility for the business.

In 2025, the average monthly salary in Dubai ranged from 13 to 22 thousand AED and depended on the position and field of activity. For example, specialists in the fields of information technology, finance, and medicine have the right to expect higher earnings, while workers in the service and trade sectors are more likely to receive lower wages.

This highlights the importance of labor market research and understanding the wage requirements in a particular field.

Education plays a significant role in determining the level of payments. College and university graduates tend to earn much more than their colleagues without degrees. The difference varies between 17-29%. Specialists with a master’s degree receive approximately 29% more than those with only a bachelor’s degree. Moreover, doctors of sciences earn another 23% more compared to masters. This highlights the importance of investing in education and continuous development for career growth.

An equally important factor is work experience. Employees with two years of experience rely on a PO for more than a third than newcomers. Professionals with more than ten years of experience earn 25% more than less experienced colleagues, which makes experience a key criterion for hiring and salary determination.

The highest earnings in the Emirates are earned by specialists working in the following niches:

  • Senior positions in large companies and international corporations provide a high level of income. Directors and managers in various fields often expect substantial payments and bonuses.
  • Finance professionals such as financial analysts, auditors, and investment bankers are also among the highest paid employees. 
  • Doctors, especially those who specialize in rare or highly skilled fields. This is due to the high demand for medical services in the country.
  • Engineers in the niches of the oil and gas industry and construction are in high demand and receive decent rewards.
  • In the context of the rapid development of technology, IT specialists, including programmers and system administrators.

One of the significant advantages of employment in the region is the absence of personal income tax. This means that workers receive their pay in full, without tax deductions, which affects the attractiveness of the wage level in the country. Many employers also offer additional bonuses, which makes working here even more profitable.

The most common types of bonuses:

— At the end of the year or based on the results of projects, employees can receive additional payments that depend on their personal achievements and the success of the company as a whole.

— If an employee has worked for the organization for at least 1 year, they are eligible for termination benefits. They amount to the equivalent of 21 PO days for each year of work during the first 5 years, and 30 days for each year after that. However, the total amount does not exceed two years’ salary.

Starting in 2024, the UAE has a new system that allows employees to invest their post-retirement benefits in pension and savings funds. This innovation is aimed at improving the financial well-being of workers and ensuring their future.

In addition to the basic salary and bonuses from employers, various compensation packages are distributed in Dubai, which make employment even more attractive. These include:

  • Many companies offer assistance in paying for housing, which is a significant factor in moving.
  • Employers often cover transportation costs.
  • Most businesses pay for health insurance, ensuring access to quality medical services.
  • For expats, a ticket to their home country is paid annually to keep in touch with family and friends.
  • It even happens that employers cover the cost of educating employees’ children, which is a significant advantage.
  • Workers have the right to expect additional payments in the form of bonuses for national holidays.

According to labor legislation, employers are required to provide a number of social guarantees and compensations. These include:

1. Annual leave: the right to 30 calendar days of paid leave after one year of work. This allows you to recuperate and spend time with your family.

2. Paid sick leave: the right to take up to 90 days of paid sick leave each year. Of these, 15 days are paid in full, which provides protection in case of illness.

3. Maternity leave. Women are entitled to 60 days of maternity leave, of which 45 days are paid in full. This is an important measure that supports women during motherhood.

4. Paternity leave. For men, a 5-day vacation is provided for the first 6 months after the birth of a child, which promotes the active participation of fathers in the life of a newborn.

5. Overtime work. When working overtime, payment is made at an increased rate — from 125% to 150% of the base rate.

Dubai has a wage protection system in place. It is designed to ensure timely and transparent remuneration. This means that employees can be confident in the regularity of their income, which is especially important for foreign professionals who often face financial difficulties in a new country.

Despite the high level of payment, it is worth considering the cost of living in Dubai. The main categories are as follows:

— Accommodation. The cost of renting a 1-room apartment in the suburbs ranges from 7 to 10 thousand AED, and in the city center — up to 30 thousand AED. This is a significant expense item that should be taken into account when planning a budget.

— Nutrition. For a family of three or four people, food costs range from 1.4 to 2.7 thousand rubles. AED per month, depending on preferences and lifestyle.

— Utilities. Monthly expenses range from 500 to 1,200 AED, depending on the size of the apartment and resource consumption.

— Educational services. If you have children, be prepared for serious educational expenses. Annual tuition usually costs from 30 to 100 thousand AED, depending on the chosen school.

— Public transport — from 300 to 500 AED per month.

Starting a business in the UAE requires a careful approach to employee benefits and benefits. Knowledge of labor legislation, understanding of market realities and taking into account factors such as education and work experience will help you to form a salary policy correctly and attract the best specialists. 

The great potential for career growth, the salary and bonus system, as well as additional compensation packages make this country attractive to professionals from various fields. However, before making a decision about moving, it is important to consider the standard of living and the associated costs.

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