What Global companies need to know about UAE payroll

What Global companies need to know about UAE payroll?

The United Arab Emirates is the new financial centre of the business world. As we also know it as the “Gateway to the Middle East” it is very attractive to business enterprises and industries.

Dubai has gone through huge as well as rapid metamorphism in the last 2 decades split into seven emirates the Dubai is the most famous advanced and attractive among all of them.

The reason behind it is that it offers a lenient business-friendly tax regime as well as free trade zones as well as access to the most rapidly emerging huge markets of the world.

All the big companies and multinational industries have their offices headquarters and business premises in Dubai.

The reason that it has become the leading business hub is that it has advanced international connectivity as well as friendly business policies and world-class infrastructure but most importantly the huge labour force.

Even though the market can be transparent and recognized internationally but it still has to follow the labour as well as employment regulations and a payroll management system.

If these are not taken care of properly the business or industry is going to suffer great losses because of it.

Employment Regulations

As we know that not just the foreign but the UAE citizens are all to get employment and labour legislation.

As we know that a person who is a new hire in a company in UAE must sign a labour contract that will be registered with the United Arab Emirates Ministry of Labour.

All of this happens during the processing of employment visa application for a foreign employee willing to work in the Emirates.

The working hours or you might call it a standard workday or weekly work hours depend on the company you get hired in.

The payroll of the individual depends upon the company he is working for or the role he is playing for the company or his education.

As many of us already know that the workweek in Dubai begins on a Sunday and it ends on Thursday but the private sector is allowed to create their schedule.

The workday consists of standard eight hours daily with a maximum of 48 hours weekly.

Compensation of workers

The minimum wage in most countries is fixed but the minimum wage in Dubai and emirates varies and the factors it depends on are the education of the employee as well as his education.

The salaries of all the employees of the United Arab Emirates are paid through a salary transfer system of the UAE, which is also called the Wages Protection System.

The probation period for the companies is at the max of 6 months no company is allowed to extend the probation period for more than six months.

Every single hour that is worked after the 48-hour week will be counted as overtime and will be compensated along with the salary of the employee.

These are the most important factors that a company need to understand about the UAE payroll.

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Christophe Rude

Christophe Rude

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