Minimum Wage
In accordance with the Labour Law, remuneration or wages include all the payments made to the worker on a yearly, monthly, weekly, daily, piece work, production, or commission basis, in return for the work he performs under the contract of employment, whether such payments are made in cash or in kind. Basic remuneration refers to the pay specified in the employment contract during its validity between the parties. Allowances whatsoever are not included in this remuneration.
The minimum pay should be enough for the employee's basic needs and to secure a means of living. A Federal Decree is issued in accordance with the proposal made by the Minister of Labour and Social Affairs and approved by the Council of Ministers. The minimum wage and cost-of-living index are determined either in general or for a particular area or a particular profession.
There is no minimum salary stipulated in the Federal Labour Law. However, it includes general provisions requiring that wages must be sufficient to meet the basic needs of employees.
According to the new Labour Law, the minimum wage for workers is determined by the cabinet upon the proposal of the Minister and in coordination with the concerned authorities.
Source: §27 of Federal Decree Law No. 33 of 2021
For detailed information on current minimum wage rates, please refer to the minimum wage section.
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Federal Law
Wage is any payment in cash or in kind, given to the employee on an annual, monthly, weekly, daily, or hourly basis, or by piece-meal or pro rata to the production or as a commission in consideration of his services under the employment contract.
Under the current Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, the term “wage” replaces the earlier concept of “remuneration” used in the repealed Federal Law No. 8 of 1980.
The basic wage is defined as the wage specified under an employment contract and is paid on a monthly, weekly, daily, hourly or piecework basis, and it does not include benefits in-kind.
The law defines wage as the basic wage plus the benefits in-kind and cash allowances provided that these amounts are prescribed in the employment contract or Labour Law. For workers paid by piecework, their daily wage is based on the average amount they earned on actual working days over the past six months before any wage-related request or complaint.
The law obliges employers to pay wages to employees on the due date set in the employment contract. Wages must be paid through the Wages Protection System or through any other system approved by the Ministry of Human Resources and Emiratisation. Upon request, the employer is obliged to provide proof of payment of wages to their workers. Legal actions can be taken against the employer because of non-payment of the agreed wage. Wages are paid in national currency (UAE Dirham) or another currency (based on the agreement of both parties in the employment contract).
Article 25 of Federal Decree-Law No. 33 of 2021 sets out the only lawful cases in which deductions may be made from wages. These include recovery of loans granted by the employer with the employee’s written consent, recovery of overpaid amounts (not exceeding 20% of the wage), contributions to pension, insurance, or savings funds, instalments for welfare schemes approved by the Ministry, disciplinary fines, court-ordered deductions, and compensation for damage caused by the worker’s fault. The total of all deductions in any case may not exceed 50% of the worker’s wage. The provision that loans may only be recovered up to 20% of the wage existed under the repealed 1980 law and no longer applies.
The remuneration includes the cost-of-living allowance, and any benefit given to the employee in reward for his honesty or efficiency, provided always that these amounts are prescribed in the Company bylaws or in the employment contract, or normally practiced or granted to the employees, until these have regarded them as an integral part of the remuneration rather than a donation.
Employees employed on a yearly or monthly basis are paid on a monthly basis, and all the other employees are paid fortnightly. Remunerations are paid in national currency (UAE Dirham) on working days at the workplace. Under current rules, wages must be paid on the due date, and at least once per month if not otherwise agreed.
Employer is not authorised to transfer the employee from the monthly pay to the daily, weekly, hourly or piece work pay without the employee’s consent. It is not necessary to provide pay slips.
Effective from October 2016, companies employing more than 100 workers must pay wages within 10 days of their due date. In case they fail, the ministry will stop granting them any additional work permits starting from the 16th day after the date of delay. If the delay continues for one month, this means the company has entered into the refrainment phase, and the ministry shall inform the judicial authorities and other related parties to take all necessary punitive measures against it. If an employer fails to pay wages for 60 days from the due date, then administrative fines follow. The administrative fines are Dh5,000 per worker’s delayed wage, up to a maximum of Dh50,000 in cases of multiple workers complaining about delayed wages for 60 days or more.
Under the new rule, employers are required to maintain and produce proof of wage payment when requested by the Ministry or competent authorities. According to Ministerial Resolution No. 598 of 2022 on the Wage Protection System, wages are deemed delayed if not paid within 15 days after the due date unless the employment contract provides for a longer period.
Employers must not make it compulsory for the worker to buy food or any other item from specific shops or products manufactured by the employer.
There is no mandatory provision in law for a 13th or 14th month pay or a compulsory bonus. However, an employer may voluntarily provide a bonus based on employment contracts, collective bargaining agreements (CBAs), company policies or discretionary awards.
Sources: Ministerial Decree concerning the protection of wages (No. 739 of 2016); Cabinet of Ministers Resolution to Amend some Provisions of Cabinet of Ministers Resolution No. 27 of 2010 Regarding Fees and Fines on Services Provided by the Ministry of Labour (No. 10 of 2012); §22 and 25 of Federal Decree Law No. 33 of 2021; §16 of Cabinet Resolution No. (1) Of 2022 On the Implementation of Federal Decree Law No. (33) Of 2021 regarding the regulations of labour relations; §8 of the Federal Decree-Law No. (47) of 2021 Regarding the Unified General Rules of Labour in the United Arab Emirates; Ministerial Resolution No. (598) of 2022 regarding Wage Protection
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The labour law differentiates between the “wage” and the “basic wage”. According to the law, wages mean all payments made to an employee in return for work done or services provided under the contract of employment. The law defines basic wages as the employee’s wage, excluding any portion of an employee’s wage received in-kind or as an allowance for housing, travel, currency exchange (cashier), children’s education, social and entertainment, or any other type of allowance, bonus, or commission payment, or overtime pay. The basic wage is calculated by taking into consideration the total number of calendar days in a year.
Employers are obliged to pay wages in a pay period, including vacation pay, at least once a month. Pay period means the hourly, daily, weekly, monthly or yearly period, where employees are paid by the hour, day, week, month or year; or the employee's applicable pay period if an employee is paid on a flat rate, piece rate, commission or other incentive basis. Whether the wage period is one week or one month, wages must be paid within seven days of completion of the wage payment period.
Pay slips are required under the law, providing the amount of gross wage paid, the amounts of any variable and any fixed deductions made from the wage and the purposes of the deduction. Employers can also provide electronic access to the pay statement and the workers can take its print.
The employer does not provide the pay statement to the employees with fixed-term employment contract of less than 30 days. There is no legal provision regarding the method of payment and currency used.
Employer has no right to deduct any amount from the worker's wage without employee’s consent or otherwise specified by the law.
On termination of the employment, the employer must pay wages and all other amounts within fourteen days. If the employer fails to do so, he/she is liable to pay the penalty equivalent to the last daily wage for each day the employer is in arrears. Employment law prohibits employers from recovering any recruitment costs. There are certain exceptions to this rule, for example, if the employment contract is terminated within 6 months of its commencement.
Source: §15-21 of the DIFC Employment Law No. 2 of 2019; Part 2 of the DIFC Law No. 4 of 2020
