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The UAE offers zero personal income tax, a cosmopolitan talent pool, and a rapidly modernizing labor framework. Rippling runs UAE payroll with full WPS compliance, EOSB accrual, and mandatory health insurance management.
The UAE is one of the Middle East's most important payroll markets, hosting the regional headquarters of thousands of multinationals. Dubai and Abu Dhabi are the primary payroll jurisdictions, each with mandatory health insurance frameworks (DHA and DOH respectively). No personal income tax applies to any employee. DIFC and ADGM free zones operate under separate employment law frameworks. Payroll must be processed via WPS (Wages Protection System) for all mainland employees.
UAE mainland LLC requires local shareholder or recent 100% foreign ownership approval via MISA (some sectors). Free zone company (DIFC, ADGM, Dubai Internet City) allows 100% foreign ownership. Payroll must be processed via WPS (Wages Protection System) — mandatory for all mainland UAE employers. MOHRE employment contract registration required for mainland employees.
Rippling runs UAE payroll through a UAE-licensed entity with WPS integration. Configuration essentials: WPS bank setup; health insurance plan (DHA or DOH compliant); EOSB accrual tracking; GPSSA enrollment for UAE nationals; Iqama/Emirates ID link for expat employees; and Arabic-language payslips. DIFC employees: DEWS provider setup instead of EOSB. Lead time: 2–4 weeks including WPS bank integration.
UAE nationals: GPSSA employer 12.5% (15% in Abu Dhabi). Non-UAE expat employees: no social insurance contribution. Mandatory health insurance: employer provides DHA (Dubai) or DOH (Abu Dhabi) compliant plan. EOSB accrual: 21 days basic salary/year (years 1–5); 30 days/year (years 6+). DIFC: DEWS 5.83% of monthly basic (years 1–5); 8.33% (years 6+). Total employer on-cost (expats): approximately 5–15% (EOSB provision + health insurance).
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No personal income tax for UAE residents (nationals or expats). UAE nationals: GPSSA employee contribution 5% of gross salary. Non-UAE expats: no social insurance contribution. Employees receive full gross salary with no income tax deduction. DIFC: DEWS funded entirely by employer (no employee contribution).
No personal income tax in the UAE. Employees receive gross salary with no income tax deductions. No payroll tax withholding required. Corporate Tax (9%) on business profits above AED 375,000 applies to the employing entity. Rippling UAE payroll processes gross salary through WPS with no income tax withholding component.
Annual leave: 30 calendar days/year (2 days/month year 1). Sick leave: 90 days (15 full, 30 half, 45 unpaid). Maternity: 60 calendar days (45 full, 15 half pay). Paternity: 5 working days. Parental leave: 5 working days for non-birth parent (2022 law). Hajj: 10 days once per employment. Public holidays: ~14 days (Islamic calendar-based dates vary annually).
Notice: 30 days minimum (up to 3 months by contract). EOSB mandatory for 1+ year employees (21 days/year years 1–5; 30 days/year year 6+). Arbitrary dismissal: 3 months' additional compensation minimum. Fixed-term early termination: compensation equal to remaining period or 3 months (lesser). Iqama cancellation within 30 days of termination — Rippling manages this process.
No annual income tax returns or payroll reconciliation required in the UAE (no personal income tax). Annual corporate tax return filed by the employing entity. GPSSA annual employer declaration for UAE national employees. WPS compliance records maintained for MOHRE inspection. Rippling maintains payroll records per UAE requirements.
Statutory: end-of-service gratuity (EOSB — 21 days basic salary/year years 1–5; 30 days/year years 6+); mandatory health insurance (DHA-compliant in Dubai, DOH in Abu Dhabi); GPSSA enrollment for UAE national employees (employer 12.5%/15%); DEWS contributions for DIFC employees (5.83%/8.33%). No personal income tax. Market standard: employer-paid health insurance, housing allowance, transport allowance, annual bonus, and return flight home allowance.
WPS (Wages Protection System) is the UAE Central Bank electronic salary transfer system. All private sector mainland employers must pay salaries through WPS-approved bank channels within 10 days of the payment due date. Non-compliance triggers MOHRE enforcement and employer ban. DIFC and ADGM have separate WPS-equivalent systems. Rippling processes all UAE payroll through WPS-compliant channels.
UAE EOSB (End-of-Service Benefit / Muksab Nihayat al-Khidma) is mandatory for employees with 1+ year of service: 21 days basic salary per year for years 1–5; 30 days per year from year 6. Calculated on basic salary only (not allowances). Maximum: 2 years' basic salary. DIFC employees: DEWS (monthly funded scheme) replaces EOSB. Rippling accrues EOSB monthly and pays on termination.
UAE employees pay no personal income tax — employees receive their full gross salary with no income tax deduction. Corporate Tax (9%) applies to business profits above AED 375,000. VAT (5%) applies to most goods and services. This tax-free environment is the UAE's most powerful compensation advantage. No payroll tax withholding obligation exists for employment income.
UAE annual leave is 30 calendar days per year (after 1 year of service; 2 days/month in the first year). Sick leave: 90 days per year (15 full pay, 30 half pay, 45 unpaid). Maternity: 60 calendar days. Paternity: 5 working days. Hajj leave: 10 days once per employment for Muslim employees. Public holidays: approximately 14 days per year (Islamic holidays vary by lunar calendar).
