UAE Labour Law: Six flexible salary payment options for UAE workers
Choose from monthly, weekly, commission-based pay, or more, as long as your employer agree
Dubai: When you are working in the UAE, there are multiple options available to you to get paid for the work that you do, as long as your employer and you have agreed on the payment frequency.
In a recent online post, the Ministry of Human Resources and Emiratisation (MOHRE) explained that under the UAE’s Labour Law – Federal Decree Law No.33 of 2021, employers and workers can agree on the form of wage payment, as long as it is stipulated in the employment contract that has been submitted to the ministry and is documented in its systems.
According to MOHRE, this flexibility ensures that the rights of all parties are protected while maintaining a fair working relationship.
6 wage payment forms in the UAE labour market
Here are the different wage payment options in the UAE, according to the labour law:
Monthly wages:
The payment that workers receive at the end of each month according to their employment contract, which includes basic salary, bonuses and allowances.
Weekly wages:
The payment workers receive for their weekly work, ensuring that the workers have a quick cash flow and companies have a more flexible wage management option.
Daily wages:
The amount a company pays workers for one day’s work, typically used for temporary or seasonal jobs.
Hourly wages:
Calculated based on the number of hours worked, with the hourly rate determined by experience, skills, and the nature of the job.
Commission-based wage:
A payment system common in sales and certain service industries, where a worker’s income is based on a percentage of the value of goods or services sold.
Piece-rate wage:
In this form, the worker’s payment is determined by the amount of work completed or units produced.
Article (22) of UAE Labour Law - Defining the amount or type of wage and its payment
1. The amount or type of wage shall be specified in the employment contract, and if it is not specified, the competent court shall specify it as a labour dispute.
2. The employer shall pay the salaries or wages to its workers on their due dates in accordance with the regulations approved in the Ministry, as well as the conditions, rules and procedures specified by the Implementing Regulation hereof.
3. The salaries shall be paid in UAE Dirham and may be paid in another currency if it is agreed upon between both parties in the employment contract.
How are salaries paid in the UAE – Wages Protection System
To guarantee secure and timely payments, all employers registered with MOHRE must be subscribed to the Wages Protection System (WPS) and pay the wages to their employees through it, as per the due dates.
Under this system, salaries of employees are transferred to their personal accounts in banks or financial institutions, which are authorised by the Central Bank of the UAE. To learn more about how your salary payment is protected in the UAE, click here.