Employer of Record in the UAE: 2026 Guide

The UAE offers zero personal income tax, but employing staff requires visa sponsorship ($500-2,000 per employee), compliance with the Wage Protection System (WPS), and end-of-service gratuity obligations. The 2022 labor law overhaul introduced fixed-term contracts, flexible work models, and enhanced worker protections. An EOR holds the trade licence and sponsors visas so you can hire in the UAE without a local entity.

Written by Maya PatelFact-checked by Chandrasmita

EOR Providers for UAE

Deel logo

Deel

Fast UAE onboarding with visa sponsorship included

Deel operates a direct entity in the UAE and handles the full visa sponsorship process: work permit application, Emirates ID registration, and residence visa processing. This is the biggest operational hurdle in UAE employment, and Deel manages it end-to-end, typically completing the process in 2-4 weeks.

Payroll runs through the Wage Protection System (WPS) as required by MOHRE. Since there is no income tax in the UAE, payroll processing is simpler than most countries, but Deel manages the gratuity accrual (21 days of salary per year for the first five years, 30 days per year thereafter) and tracks it for financial reporting.

Deel also handles the relatively new corporate tax filing requirements (9% on profits above AED 375,000) that affect the EOR entity, so clients do not need to worry about indirect tax exposure. Employment contracts comply with the 2022 UAE Labour Law (Federal Decree Law No. 33 of 2021).

Strengths in this market

  • End-to-end visa sponsorship including Emirates ID and residence visa
  • WPS-compliant payroll with automatic gratuity accrual tracking
  • Contracts compliant with the 2022 UAE Labour Law

Limitations to know

  • Visa processing timeline varies by emirate and nationality
  • No free zone entity option — operates through mainland licence
  • Additional fees for visa renewal and status changes
From $599/mo per employee
Remote logo

Remote

Owned UAE entity with transparent total cost modeling

Remote maintains its own UAE entity and processes all employment through it, including visa sponsorship. Their cost calculator shows the complete picture: EOR fee plus visa costs, medical insurance (mandatory in the UAE), and gratuity accrual. There are no hidden charges layered in after signing.

The platform manages UAE-specific employment requirements: mandatory health insurance (DHA-compliant in Dubai, HAAD-compliant in Abu Dhabi), annual leave of 30 calendar days, and the fixed-term contract structure now required under the new labour law.

Remote also handles the WPS registration and monthly salary uploads, ensuring the employer record shows compliant payment timing. Late WPS submissions trigger MOHRE penalties, and Remote's automated system eliminates this risk.

Strengths in this market

  • Owned UAE entity with full visa sponsorship capability
  • Transparent pricing including visa, insurance, and gratuity costs
  • Automated WPS compliance preventing late-submission penalties

Limitations to know

  • Onboarding timeline is 3-5 weeks including visa processing
  • Health insurance plan options are limited to Remote's group scheme
  • No free zone employment option
From $599/mo per employee
Oyster HR logo

Oyster HR

Employee experience and benefits transparency in the UAE

Oyster provides UAE employees with a clean portal showing their compensation, leave balance, and benefits details. The cost calculator breaks down the employer's total spend including the monthly EOR fee, prorated visa costs, health insurance premium, and gratuity accrual.

UAE employment contracts generated by Oyster comply with the 2022 Labour Law, including the mandatory shift to fixed-term contracts (maximum 3 years, renewable) and the new non-compete provisions that limit post-employment restrictions to 2 years.

The platform handles the full leave entitlement: 30 calendar days annual leave after one year of service, 15 days for those with 6-12 months of service, sick leave (15 days full pay, 30 days half pay, then 30 days unpaid), and maternity leave of 60 days.

Strengths in this market

  • Clear total cost breakdown including visa and insurance
  • Fixed-term contract compliance with 2022 Labour Law provisions
  • Comprehensive leave tracking per UAE entitlements

Limitations to know

  • Visa processing delegated to third-party agents in some emirates
  • No support for free zone employment structures
  • Limited customization of health insurance beyond the group plan
From $599/mo per employee
Globalization Partners logo

Globalization Partners

Enterprise UAE operations with complex workforce structures

G-P's UAE presence supports complex employment scenarios including multi-emirate operations, senior executive contracts with bespoke terms, and the management of the end-of-service gratuity for long-tenured employees where the liability becomes substantial.

The platform handles the distinction between mainland and free zone employment regulations, which differ in terms of visa quotas, permitted activities, and reporting requirements. G-P can advise on which structure best fits your hiring needs.

G-P also manages the new UAE unemployment insurance scheme (mandatory since 2023), which requires monthly premiums and provides temporary financial support to employees who lose their jobs involuntarily.

Strengths in this market

  • Expertise in mainland vs. free zone employment distinctions
  • Unemployment insurance scheme management (mandatory since 2023)
  • Complex executive contract structuring and gratuity management

Limitations to know

  • Premium pricing on top of already significant UAE visa costs
  • Slower implementation than nimbler competitors
  • Contractor management is a separate product
From $800+/mo per employee
Skuad logo

Skuad

Budget-friendly UAE EOR for small international teams

Skuad offers UAE EOR at $299/mo per employee plus visa and insurance costs. Since UAE salaries tend to be higher (reflecting the tax-free compensation structure), the EOR fee stays proportional. The platform covers WPS payroll, gratuity accrual, and employment contract generation.

Visa sponsorship is included in the service, though the actual visa costs (processing fees, medical examination, Emirates ID) are passed through at cost. Skuad provides visibility into these charges upfront so there are no surprises.

The platform handles standard UAE employment including the 30-day annual leave, sick leave provisions, and end-of-service gratuity calculation. For most roles in the UAE, this covers what is needed without the premium pricing of larger providers.

Strengths in this market

  • Lower monthly fee at $299/mo with visa costs passed through at cost
  • WPS-compliant payroll and gratuity tracking
  • Transparent upfront breakdown of all visa and insurance charges

Limitations to know

  • Visa processing may be slower than providers with dedicated PRO teams
  • Health insurance options are basic
  • No advisory on free zone vs. mainland structuring
From $299/mo per employee (plus visa costs)
Remofirst logo

Remofirst

Lowest EOR fee for UAE employment

Remofirst's $199/mo base fee is the lowest for UAE EOR. Since UAE salaries are typically higher (AED 10,000-30,000/month for professional roles), the monthly fee remains a small fraction of total employment cost. Visa and medical insurance costs are additional.

The service covers WPS payroll, end-of-service gratuity accrual, and employment contracts compliant with the 2022 Labour Law. Annual leave, sick leave, and public holiday tracking are included.

For straightforward UAE hires where the employee already has residency or where your visa needs are uncomplicated, Remofirst provides the essentials. Complex scenarios like work permit renewals, family visa sponsorship, or multi-emirate operations may require more support.

Strengths in this market

  • Lowest base EOR fee at $199/mo for UAE
  • WPS compliance and gratuity tracking included
  • Suitable for employees with existing UAE residency

Limitations to know

  • Visa processing is basic — complex cases need escalation
  • No family visa sponsorship support through the EOR
  • Medical insurance options are minimal
From $199/mo per employee (plus visa costs)
Velocity Global logo

Velocity Global

Full-service UAE employment including premium visa handling

Velocity Global provides a premium UAE EOR service with dedicated PRO (Public Relations Officer) support for visa processing. PROs manage the in-person visits to MOHRE, immigration, and medical testing centers that UAE visa processing requires, reducing the timeline and complexity.

The platform covers all employment obligations under the 2022 Labour Law, WPS payroll, gratuity, and the mandatory unemployment insurance. Velocity Global also assists with salary structuring for the UAE market, where compensation often includes housing allowance, transportation allowance, and education allowance as separate components.

For companies hiring senior executives in the UAE, Velocity Global can structure golden visa applications (10-year residency) alongside the standard employment visa, which provides stability for high-value employees.

Strengths in this market

  • Dedicated PRO support for faster visa processing
  • UAE salary structuring with allowance breakdowns
  • Golden visa application support for senior hires

Limitations to know

  • Custom pricing reflects the premium service level
  • Smaller UAE team compared to regional specialists
  • Primarily focused on Dubai and Abu Dhabi — other emirates may lag
Custom pricing
Papaya Global logo

Papaya Global

Multi-country payroll consolidation including UAE

Papaya Global processes UAE payroll alongside other countries in a unified dashboard. Since UAE payroll is tax-free, the processing is simpler than most jurisdictions, but Papaya handles the WPS compliance, gratuity calculations, and the new unemployment insurance contributions that add a layer of complexity.

The platform provides detailed cost analytics showing total employer spend per UAE employee: base salary, allowances, EOR fee, visa costs, medical insurance, and gratuity accrual. This feeds into multi-country workforce cost comparisons.

Papaya also manages the year-end gratuity reconciliation, which matters for finance teams that need to report the liability accurately across their global workforce.

Strengths in this market

  • Multi-country dashboard with UAE as one consolidated view
  • Gratuity liability reporting for finance team accuracy
  • Unemployment insurance contribution management

Limitations to know

  • Custom pricing without published per-employee rates
  • Visa processing handled through partners, not directly
  • Minimum headcount requirements may apply
Custom pricing

Hiring in the UAE: Employment Law and Costs

UAE employment is governed by Federal Decree Law No. 33 of 2021 (effective February 2022), which replaced the 1980 Labour Law. Key changes include: mandatory fixed-term contracts (maximum 3 years, renewable), new work permit categories, anti-discrimination provisions, and enhanced maternity/paternity leave.

The UAE has zero personal income tax. Corporate tax (9% on profits above AED 375,000) was introduced in 2023 but does not affect employee take-home pay. The employer's main costs beyond salary are: visa sponsorship ($500-2,000 per employee), mandatory health insurance ($500-3,000/year), and end-of-service gratuity.

End-of-service gratuity is calculated at 21 days of basic salary for each of the first 5 years of service, and 30 days for each subsequent year. The total cannot exceed 2 years of salary. This is payable upon termination by either party and is based on the last drawn basic salary (excluding allowances).

The Wage Protection System (WPS) requires all employers to pay salaries through designated banks and exchange houses, with data transmitted to MOHRE. Late or missed salary payments trigger automatic alerts and can result in penalties including suspension of the company's ability to issue new work permits.

Leave entitlements: 30 calendar days annual leave after 1 year of service, 2 days per month during probation, 10 paid public holidays, sick leave (15 days full pay, 30 days half pay, 30 days unpaid), maternity leave of 60 days (45 full pay, 15 half pay), and 5 days paternity leave. The new law also introduced compassionate leave of 3-5 days.

How to Choose an EOR for the UAE

Visa sponsorship quality is the top differentiator for UAE EOR providers. Every employee needs a work permit and residence visa, and the process involves MOHRE approval, medical testing, Emirates ID registration, and visa stamping. Providers with in-house PRO teams process visas faster and handle complications more smoothly than those who outsource.

Health insurance is mandatory in the UAE (required for visa issuance in Dubai and Abu Dhabi). Compare the medical insurance plans offered by each EOR — basic plans from budget providers may not meet the expectations of professionals accustomed to comprehensive coverage.

End-of-service gratuity is a significant financial obligation: 21 days of basic salary per year for the first 5 years, then 30 days per year after that. Confirm your EOR tracks this accrual accurately and handles the payout calculation correctly when an employee departs.

The UAE's 2022 Labour Law introduced significant changes including mandatory fixed-term contracts, new work permit categories (part-time, temporary, freelance), and enhanced employee protections. Ensure your EOR operates under the current framework, not the older unlimited contract system.

EOR vs Local Entity in the UAE

Setting up a mainland LLC in the UAE takes 2-4 weeks and costs $8,000-20,000 depending on the emirate and business activity. Free zone companies are faster and often cheaper but have restrictions on operating outside the free zone. Since 2020, 100% foreign ownership is permitted for mainland companies in most sectors.

Annual costs for a UAE entity include trade licence renewal ($3,000-8,000), office space (mandatory for visa quota), health insurance, and compliance services. Total annual overhead runs $15,000-40,000 before any employee costs.

The visa quota is a practical constraint. Each entity has a visa quota based on its office space — typically 1 visa per 9 sqm of office space for mainland companies, or fixed quotas for free zone entities. If you need to hire more people than your quota allows, an EOR can supplement your capacity.

For companies testing the UAE market with 1-5 employees, an EOR is almost always more practical than entity formation. The breakeven point is typically 8-12 employees, but the convenience of EOR extends the effective breakeven further when you factor in the administrative burden of visa management, WPS compliance, and gratuity tracking.

Frequently asked questions

What is an employer of record?

An EOR is a third-party organization that becomes the legal employer of your workers in countries where you don't have an entity, handling payroll, taxes, benefits, and compliance on your behalf.

How much does an EOR cost?

EOR pricing typically ranges from $199 to $1,500 per employee per month depending on the provider, country, and service level. Most mid-market EORs charge $499-$699 per employee.

EOR vs PEO — what is the difference?

An EOR creates a new employment relationship in a country where you have no entity. A PEO co-employs workers alongside your existing entity. EOR is for international expansion; PEO is for domestic HR outsourcing.

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