There is no minimum salary stipulated in the UAE Labour Law, however it broadly mentions that salaries must cover basic needs of the employees. Article of the Labour law mentions that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet. It is further noted that upon completion of two years of employment your employer renewed your labour contract and at the time of its renewal reduced your basic salary to Dh0(per cent ) and other allowances were fixed to Dh0(per cent ). No minimum wage has been prescribed under the UAE Labour Law.
However, an employee with a monthly salary of less than Dhs. Remuneration as per UAE Labour Law. It shall be paid lawfully in national currency. As per the Chapter III Section Article 5 employees who are engaged on yearly or monthly remuneration shall be paid at least once a month.
It is also referred to as the end of service benefit. All other employees shall receive their remuneration at least once in every two weeks.
Insurance Used to be non existent but the trend is becoming like the USA, where basic life insurance is provided by employers. You get this amount annually as well and it is deposited in your deferral account. Overtime= Number of overtime hours X Per hour salary X 1. As per govt law - we can take as Basic on gross salary and basic is vary from one organization to another organization. The amount is important, as it is the basis of calculation for your end-of-service gratuity pay. A one-stop resource for the labor law you need.
Members Receive Unlimited Access! Join Thousands of HR Professionals. Buy Now and Maintain Compliance! As per UAE LABOUR LAW, Article 13 maximum gratuity amount for employee cannot exceed years’ gross salary. Overtime in UAE is calculated based on UAE Labour LAW.
Without prejudice to the cases under this Law regarding the exemption from fees, the Minister of Labour shall determine in a decision given by him the fees due for the issue of Labour recruitment offices licenses, employment visas, work permits, renewal and issue of copies thereof provided that such fee shall not exceed Dh. I would further advise that your termination on the basis of redundancy is arbitrary in terms of the labour law. You should know that the formula of gratuity calculation in UAE is very simple.
It is the basic salary on which you gratuity is calculated.
Here you should also keep in mind that this salary does not include any allowances or any extra pay. If you have to pay any amount of money to employer, the employer can charge that money from you gratuity at the time of calculation. High school graduates must earn a minimum of Dh0per month and UAE nationals with a college certificate or more must earn a minimum of Dh0per month. Penalty for ending a contract tied to basic salary.
The contract just says that the termination compensation will be in accordance to the UAE Labour Law. Job as he already possess years exp. The Labour Laws only protects minimum wages for a workmen. The United Arab Emirates Labor Law website also contains resources for understanding the current economic situation in the UAE Labor Law , migrant rights, and other helpful tools to assist with further analysis of labor related functions in the country.
The full text version of the UAE Labor Law including its amending texts is available on the site. I have availed days of annual leave so far and days are pending.
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