Employer of Record in the United Arab Emirates

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
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Why companies build teams in the United Arab Emirates

Lundi supports compliant employment in the UAE — Dubai for finance, tech, regional sales, and Middle East operations; Abu Dhabi for sovereign-fund-adjacent and energy operations. 9% corporate tax (recently introduced) and 0% personal tax for most income. Strong fit for regional MENA presence and senior expat talent.

Languages

Arabic

Payroll Frequency

Monthly

Currency

AED

Capital City

Abu Dhabi

Employer Tax Rate

12.50%

The UAE has built itself into the Middle East's primary international business hub — Dubai concentrates finance (DIFC), tech, regional sales, and customer success for MENA-region customers; Abu Dhabi concentrates sovereign fund operations, energy, and government-adjacent finance. The UAE introduced 9% corporate tax in 2023 (previously 0%) but maintained 0% personal income tax for most income. Significant senior expat professional workforce; many roles operate in English. UAE dirham (AED) is pegged to USD. Strong fit for regional MENA presence, senior international hires (relocated or local), and operations specifically requiring Middle East time-zone or government-adjacent customer access.

Cost of Employment in the United Arab Emirates

In United Arab Emirates, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in United Arab Emirates below.

Talk to us about the United Arab Emirates

Employer Tax Costs in United Arab Emirates

Social Security (basic social security plus housing allowance, based on monthly minimum of 1,000 AED and maximum of 50,000 AED) There is an additional 2.5% contribution made by the Government making the total contribution for social security of 20%. A higher rate of 26% is applied in the Emirate of Abu Dhabi, where the contribution of the employer is 15%, the Government’s contribution is 6%, and the employee’s contribution is 5%.

Employee Income Taxes in United Arab Emirates

Employees in UAE don't have an income bracket. Social Security (basic social security plus housing allowance, based on monthly minimum of 1,000 AED and maximum of 50,000 AED) (These contributions are for Emiratis only, no contributions for expats)

Employee Probation in United Arab Emirates

Probation period may not exceed 6 months. During probation, the employer may terminate the employment with a notice period of 14 days. If a foreign worker wishes to terminate the employment contract during the probation period and leave the state, he should give 14 days’ notice. Notice periods can be substituted by equivalent wages.

Employee Overtime in United Arab Emirates

In the UAE, the standard working week is Monday to Friday, with 40 working hours.

Employee Notice in United Arab Emirates

For unlimited term employment contracts, the minimum notice period is 1 month. The statutory maximum notice period is 3 months.30 day written notice if the period of services is less than five years;60 day written notice if the period of service exceeds five years; and90 day written notice if the period of service exceeds 10 years.

Termination in United Arab Emirates

Employee contracts can only be terminated according to terms spelled out in the Emirati Labour Law, and the relevant authorities must be informed accordingly.

How Lundi works in the United Arab Emirates

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.