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Labor Laws in United Arab Emirates

  • Annual Leave: 30 days
  • Maternity Leave: 60 days
  • Public Holidays: 11
  • Workweek: 48 hours per week.

Income Tax in United Arab Emirates

The UAE does not levy income tax on individuals.

Value Added Tax (VAT) in United Arab Emirates

The standard VAT rate in the UAE is 5%, applicable to most goods and services.

Social Security in United Arab Emirates

In the UAE, social security contributions apply only to UAE national employees, not expatriates. The contributions are as follows:

Employer Social Security Contributions

  • 12.5% of the employee's monthly salary (basic salary + housing allowance)
  • For companies in Abu Dhabi, the employer contribution is higher at 15%

Employee Social Security Contributions

  • 5% of the employee's monthly salary (basic salary + housing allowance)

Additional Government Contribution

  • The UAE government makes an additional 2.5% contribution to UAE national employees
  • For Abu Dhabi, the government contribution is 6%
  • Salary Limits
  • Social security contributions are calculated based on a minimum monthly salary of AED 1,000
  • The maximum monthly salary is AED 50,000

Work Visas in the UAE

Here are the main work visas available in the United Arab Emirates:

Standard Work Visa

  • Purpose: For foreign nationals with a job offer from a company in the UAE.
  • Eligibility: Requires a job offer from a UAE-based employer and the employer’s sponsorship. The employer handles the visa application process on behalf of the employee.
  • Duration: Typically 2-3 years, renewable.
  • Process: Includes receiving an employment contract, obtaining an entry visa, passing medical tests, and getting a residency visa and Emirates ID.

Green Visa

  • Purpose: Designed for skilled workers, freelancers, and investors, allowing them to sponsor themselves without needing an employer.
  • Eligibility:
    • Skilled workers: Requires specific qualifications and a job offer in a highly skilled role.
    • Freelancers and investors: Must provide proof of income or financial stability.
    • Duration: 5 years, renewable.
    • Benefits: Greater flexibility and the ability to sponsor family members.

Freelancer Visa

  • Purpose: For freelancers and self-employed individuals in certain industries (media, technology, education, etc.).
  • Eligibility: A freelance license is required, which can be obtained through designated free zones in the UAE. Applicants need proof of relevant work experience, portfolio, or project contracts.
  • Duration: Typically 1-3 years, renewable.
  • Process: Involves applying for a freelancer permit and then applying for the visa under a free zone.

Golden Visa

  • Purpose: A long-term residency visa for investors, entrepreneurs, specialized talents, and professionals.
  • Eligibility:
    • Investors: Requires substantial investments in the UAE (real estate, business).
    • Entrepreneurs: Must own or have a major stake in a UAE-based business.
    • Professionals: Highly skilled professionals in sectors like science, healthcare, technology, and education.
    • Duration: 5 to 10 years, renewable.
    • Benefits: No need for an Emirati sponsor and the ability to sponsor family members.

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